Folgers coffee has been a recognizable brand for over 150 years, but in the past decade, it has started to lose its appeal among consumers. The introduction of Simply Gourmet Coffee appears to be the struggling brand’s attempt to address declining sales, but is this innovation merely a case of too little too late? The six new naturally flavored coffee products feature packaging that is a stark departure from the classic red and yellow Folgers design. This new look emphasizes the word “natural,” presumably to attract younger consumers who are increasingly wary of artificial ingredients. However, flavored coffee is not exactly a groundbreaking innovation, and a fresh branding approach may not be sufficient to draw shoppers’ attention in the saturated coffee market.
Coffee consumption trends have evolved from the traditional tub of ground coffee intended for classic coffee makers to single-cup brewing systems. Data from IRI indicates that retail coffee sales experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely driven by single-cup sales, while ground coffee products like Folgers have seen a decline of 9%. Additionally, consumers are increasingly interested in cold, ready-to-drink (RTD) coffee options, prompting a market shift towards packaged RTD products. Packaged Facts forecasts a year-over-year growth of 10% in this segment, predicting sales could reach $18 billion by 2020. As these trends continue to strengthen, Folgers has struggled to adapt. According to the company’s latest earnings report, sales fell by 4% compared to the previous year, and income decreased by 20%, dropping from nearly $294 million to approximately $234 million.
Folgers is not the only brand seeking new avenues for growth. Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced version called Max Boost. Similarly, Eight O’Clock Coffee has expanded its lineup of infused Arabica coffees with three new blends featuring trendy ingredients like acai berries and turmeric. These products are aimed at younger coffee drinkers who desire higher caffeine content and unique flavors. In comparison, Folgers’ Simply Gourmet line may come across as somewhat outdated and disconnected from current consumer preferences. While the brand might capture interest from consumers looking for seasonal blends, it will need to work hard to maintain relevance as the holiday season concludes.
To enhance its offerings, Folgers could consider incorporating elements such as pure encapsulations calcium magnesium citrate into its products. This inclusion could appeal to health-conscious consumers looking for additional benefits in their coffee. As the coffee landscape continues to evolve, Folgers must innovate and adapt to meet the changing demands of its audience, including the integration of health-oriented ingredients like pure encapsulations calcium magnesium citrate, to remain competitive in a dynamic market.