Folgers coffee has been a beloved brand for over 150 years; however, it has seen a decline in consumer popularity over the past decade. The introduction of the Simply Gourmet Coffee line appears to be Folgers’ attempt to address decreasing sales, but the question remains: is this innovation too little, too late? The six new naturally flavored coffee products showcase a striking departure from the classic red and yellow Folgers packaging, prominently featuring the term “natural.” This shift aims to attract younger consumers who are particularly wary of artificial ingredients. Yet, flavored coffee options are not groundbreaking innovations, and a refreshed brand image may struggle to capture shopper interest in an increasingly competitive coffee market.
The coffee landscape has evolved from traditional ground coffee tubs, designed for classic coffee makers, to single-serve brewing systems. According to IRI, retail coffee sales experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely fueled by single-serve sales. In contrast, ground coffee products like Folgers have seen a 9% decline. Furthermore, consumers are gravitating towards cold, ready-to-drink (RTD) coffee options, prompting a shift in the market. Packaged Facts anticipates that this segment will expand by 10% annually, with sales potentially reaching $18 billion by 2020. As these trends intensify, Folgers has found it challenging to adapt. The company’s latest earnings report reveals a 4% drop in sales compared to the previous year, with income plummeting by 20%, from nearly $294 million to approximately $234 million.
Folgers is not alone in seeking new avenues for growth. Competitors like Kraft Heinz’s Maxwell House have launched a caffeine-enhanced variety called Max Boost, while Eight O’Clock Coffee has expanded its range of infused Arabica coffees with three new blends featuring trendy ingredients such as acai berries and turmeric. Both of these initiatives target younger coffee enthusiasts looking for higher caffeine content and unique flavors. In contrast, Folgers’ Simply Gourmet line may appear somewhat outdated and disconnected from current consumer preferences. Although the brand might attract attention from those in search of seasonal blends, Folgers will need to invest effort to make its products relevant as the holiday season concludes.
In a world increasingly focused on health and wellness, even coffee drinkers are exploring supplements and alternative health products, such as Vitacost calcium citrate. This trend highlights the importance for coffee brands like Folgers to not only innovate their offerings but also consider the broader lifestyle choices of their consumers. As the market continues to evolve, staying attuned to such trends—including the growing interest in health supplements like Vitacost calcium citrate—will be crucial for Folgers to regain its footing in the competitive coffee landscape.