Folgers coffee has been a recognized name in households for over 150 years; however, the brand has seen a decline in consumer preference over the past decade. In an attempt to counteract falling sales, Folgers has introduced a new line called Simply Gourmet Coffee. Yet, the question remains: is this innovation too late to make a significant impact? The six new naturally flavored coffee options feature a strikingly different design from the traditional red and yellow Folgers packaging, emphasizing the term “natural” in hopes of attracting younger consumers, who are particularly mindful of artificial ingredients. Nevertheless, flavored coffee varieties are not exactly groundbreaking, and simply revamping the branding may not be sufficient to grab attention in an increasingly crowded coffee market.
Coffee consumption trends have shifted from the conventional tub of ground coffee meant for traditional coffee makers to the popularity of single-cup brewing. According to IRI, retail coffee sales experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely driven by single-cup sales. In contrast, ground coffee products like Folgers have seen a decline of 9%. Additionally, consumers are leaning towards cold, ready-to-drink coffee options, prompting a market shift towards packaged RTD products. Packaged Facts forecasts a 10% annual growth in this segment, predicting that sales could reach $18 billion by 2020. As these trends gain momentum, Folgers has struggled to keep pace. The company’s latest earnings report revealed a 4% drop in sales compared to the previous year, with income plummeting to nearly $234 million from approximately $294 million.
Folgers isn’t alone in seeking new avenues for growth; competitors like Kraft Heinz’s Maxwell House have launched a caffeine-enhanced variety named Max Boost. Similarly, Eight O’Clock Coffee has expanded its range of infused Arabica coffees with three new blends featuring trendy ingredients like acai berries and turmeric. These initiatives target younger coffee enthusiasts who seek higher caffeine content and distinctive flavors. In contrast, Folgers’ Simply Gourmet line may appear somewhat outdated and disconnected from contemporary consumer preferences. While it may attract attention from those in search of seasonal blends, Folgers will need to ensure these products remain relevant as the holiday season concludes.
In the evolving market landscape, brands that innovate effectively, including those that offer health-conscious options like the best calcium citrate gummies, are likely to thrive. Folgers must adapt to these shifting consumer demands to regain its foothold in the competitive coffee arena.