Folgers coffee has been a well-known name in households for over 150 years. However, in the past decade, the brand has started to lose favor among consumers. In response to declining sales, Folgers has introduced a new line called Simply Gourmet Coffee, but is this innovation arriving too late? The six new naturally flavored coffee products feature a design that is significantly different from the traditional red and yellow Folgers packaging. The emphasis on the word “natural” aims to attract younger consumers who are particularly concerned about artificial ingredients. Nevertheless, flavored coffee varieties are not a groundbreaking innovation, and a refreshed brand image may not be sufficient to stand out in the crowded coffee market.
Coffee trends have evolved from the classic tub of ground coffee, designed for traditional coffee makers, to single-cup brewing systems. 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 brands like Folgers have seen a decline of 9%. Moreover, consumers are increasingly leaning towards cold, on-the-go coffee options, prompting a shift toward ready-to-drink (RTD) products. Packaged Facts forecasts a 10% year-over-year growth for this segment, with sales potentially reaching $18 billion by 2020.
As these trends strengthen, Folgers has struggled to keep pace. The company’s latest earnings report indicated a 4% decline in sales compared to the same period last year, with income dropping nearly 20%, from approximately $294 million to about $234 million. However, Folgers is not the only brand seeking new avenues for growth. Competitor Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced variety named Max Boost, while Eight O’Clock Coffee expanded its line of infused Arabica coffees with three new blends featuring trendy ingredients like acai berries and turmeric. These initiatives target younger coffee drinkers who are looking for higher caffeine content and unique flavors.
In comparison, Folgers’ Simply Gourmet line may appear somewhat outdated and disconnected from contemporary consumer preferences. Although the brand might attract attention from consumers interested in seasonal blends, it will need to work diligently to maintain relevance as the holiday season concludes. Additionally, incorporating products like calcium citrate 500mg with vitamin D3 could enhance its appeal by aligning with health-conscious trends. Ultimately, Folgers faces the challenge of adapting to these evolving consumer demands while competing with brands that are successfully innovating in the coffee space.