Folgers coffee has been a renowned brand for over 150 years; however, it has begun to lose consumer appeal in the past decade. The introduction of the Simply Gourmet Coffee line appears to be the struggling brand’s attempt to counteract declining sales, but is this innovation too late? The six new naturally flavored coffee products have a strikingly different look compared to the traditional red and yellow Folgers packaging. The design emphasizes the term “natural,” likely aiming to attract younger consumers who are particularly wary of artificial ingredients. Nevertheless, flavored coffee options aren’t exactly groundbreaking, and a brand refresh might not be sufficient to draw attention in the competitive coffee market.
Coffee consumption trends have shifted from the classic tub of ground coffee, which is 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, predominantly driven by single-cup sales. In contrast, ground coffee like Folgers has seen a decline of 9%. Additionally, consumers are increasingly gravitating towards cold, ready-to-drink (RTD) coffee options, prompting a shift in the market towards these packaged products. Packaged Facts forecasts that this segment will grow by 10% annually, with sales projected to reach $18 billion by 2020.
As these trends gain momentum, Folgers has found it challenging to keep pace. The company’s latest earnings report indicated a 4% decline in sales compared to the previous year, and income fell by 20%, dropping from nearly $294 million to about $234 million. However, Folgers is not alone in its quest for new growth avenues. Competitor Kraft Heinz’s Maxwell House brand recently launched a caffeine-enhanced product called Max Boost. Meanwhile, Eight O’Clock Coffee has expanded its infused Arabica coffee offerings with three new blends featuring trendy ingredients like acai berries and turmeric. These initiatives are specifically targeted at younger coffee enthusiasts seeking higher caffeine content and unique flavors.
In comparison, the new Simply Gourmet line from Folgers may appear somewhat outdated and disconnected from contemporary consumer preferences. While it may attract attention from those interested in seasonal blends, Folgers will need to make its products more relevant as the holiday season fades. As consumers continue to prioritize health-conscious choices, incorporating elements like calcium citrate 1000 mg tablet into their diets, Folgers may need to rethink its strategy to resonate with today’s coffee drinkers. Overall, without significant innovation and adaptation, Folgers risks being overshadowed in a rapidly evolving market.