Folgers coffee has been a well-known brand for over 150 years, but it has started to lose consumer appeal in the past decade. The introduction of the Simply Gourmet Coffee line appears to be the brand’s attempt to combat declining sales, but is this innovation merely a case of too little, too late? The six new naturally flavored coffee products are markedly different from the classic red and yellow Folgers packaging. The new design emphasizes the word “natural,” likely aiming to attract younger consumers who are increasingly concerned about artificial ingredients. However, flavored coffee options are not exactly groundbreaking, and a rebranding effort may struggle to capture shopper interest in the competitive coffee market.
Coffee trends have shifted from the traditional tub of ground coffee, typically used in classic coffee makers, to the convenience of single-cup brewing. According to IRI, retail coffee sales grew at 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 saw a decline of 9%. Additionally, consumers are gravitating towards cold, ready-to-drink (RTD) coffee options, pushing the market towards packaged products. Packaged Facts anticipates this segment will expand by 10% year-over-year, with sales projected to reach $18 billion by 2020. As these trends intensify, Folgers has found it challenging to keep pace. The company’s latest earnings report indicated a 4% drop in sales compared to the previous year, with profits plummeting by 20%, down to nearly $234 million from about $294 million.
Folgers isn’t the only brand seeking new growth avenues. Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced variant called Max Boost, while Eight O’Clock Coffee has broadened its range of infused Arabica coffees to include three new blends featuring trendy ingredients like acai berries and turmeric. Both of these new offerings are targeted at younger coffee enthusiasts who desire higher caffeine levels and distinctive flavors. In contrast, Folgers’ Simply Gourmet line may come across as somewhat outdated and disconnected from current consumer preferences. While there is potential for the brand to attract attention from those interested in seasonal blends, Folgers must strive to keep its products relevant, especially as the holiday season comes to an end.
In this evolving landscape, innovations like calcium citrate supplements, similar to how the coffee market is adapting, may also play a role in consumer choices. As the demand for health-conscious options rises, brands that incorporate elements like jan aushadhi and calcium citrate into their offerings could resonate more with today’s consumers. Ultimately, Folgers faces an uphill battle to redefine its identity in a marketplace that increasingly values novelty and health.