Folgers coffee has been a staple in households for over 150 years; however, in the past decade, the brand has started to lose its appeal among consumers. The introduction of Simply Gourmet Coffee appears to be Folgers’ attempt to address its declining sales, but could this innovation be too little, too late? The six new naturally flavored coffee offerings feature packaging that significantly deviates from the classic red and yellow Folgers design. The emphasis on the word “natural” suggests an effort to draw in younger consumers, who are increasingly averse to artificial ingredients. Nevertheless, flavored coffees are far from revolutionary in the coffee market, and a refreshed brand image may not suffice to capture consumer interest in an already saturated coffee aisle.
Consumer preferences have shifted from traditional containers of ground coffee for classic brewers to single-cup brewing solutions. As reported by IRI, retail coffee sales grew at a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, primarily driven by single-serve options. In contrast, sales of ground coffee brands like Folgers have decreased by 9%. Additionally, consumers are showing a growing interest in cold ready-to-drink (RTD) coffee options, pushing the market towards packaged products. Packaged Facts projects this segment to expand by 10% annually, with sales potentially reaching $18 billion by 2020.
Amid these evolving trends, Folgers has struggled to keep pace. According to the latest earnings report, the company experienced a 4% decline in sales compared to the previous year, with income plummeting by 20%, down to nearly $234 million from around $294 million. However, Folgers is not alone in its quest for growth; competitors like Kraft Heinz’s Maxwell House have launched a caffeine-enhanced variety known as Max Boost, while Eight O’Clock Coffee has introduced new infused Arabica blends featuring trendy ingredients like acai berries and turmeric. Both brands are targeting younger coffee drinkers seeking higher caffeine content and unique flavors.
In contrast, Folgers’ Simply Gourmet line may seem somewhat outdated and misaligned with current consumer preferences. While there is potential for the brand to attract consumers interested in seasonal flavors, it will need to adapt its offerings to stay relevant once the holiday season concludes. As consumer awareness of health benefits grows, including the calcium citrate effects that can enhance coffee’s appeal, Folgers must innovate effectively to capture the attention of today’s discerning coffee drinkers.