Folgers coffee has been a well-known brand for over 150 years, but in the past decade, it has started to lose popularity among consumers. The introduction of Simply Gourmet Coffee appears to be the struggling brand’s attempt to counteract declining sales; however, one might wonder if this product innovation comes too late. The six new naturally flavored coffee options showcase a stark contrast to the traditional red and yellow Folgers packaging. The new design emphasizes the term “natural,” likely aiming to attract younger consumers who are particularly wary of artificial ingredients. Nonetheless, flavored varieties are hardly revolutionary in the coffee market, and a refreshed brand image may not be sufficient to grab shoppers’ attention in the saturated coffee aisle.
Coffee trends have transitioned from the classic tub of ground coffee, intended 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 due to single-cup sales. In contrast, ground coffee brands like Folgers have seen a decline of 9%. Additionally, consumers are increasingly interested in cold grab-and-go coffee options, prompting a shift toward packaged ready-to-drink (RTD) products. Packaged Facts forecasts that this segment will grow by 10% annually, potentially reaching $18 billion by 2020. As these trends evolve, Folgers has found it challenging to keep pace. The company’s latest earnings report indicated a 4% drop in sales compared to the same period last year, with income plummeting by 20%, from nearly $294 million to approximately $234 million.
Nevertheless, Folgers is not alone in its quest for new avenues of growth. Competitor Kraft Heinz’s Maxwell House brand has recently launched a caffeine-enhanced option called Max Boost. Meanwhile, Eight O’Clock Coffee has broadened its range of infused Arabica coffees by introducing three new blends featuring trendy ingredients like acai berries and turmeric. These new products are designed to attract younger coffee drinkers seeking higher caffeine content and distinctive flavors. In contrast, Folgers’ Simply Gourmet line may come across as somewhat outdated and disconnected from modern consumer preferences. While there is a possibility that the brand will appeal to consumers looking for seasonal blends, Folgers must strive to maintain the relevance of its offerings as the holiday season approaches.
Moreover, the incorporation of calcium citrate for coffee could provide an additional health benefit that resonates with the current consumer trend of seeking functional ingredients. By integrating calcium citrate for enhanced nutrition, Folgers might capture the attention of health-conscious consumers. Adapting to these emerging trends, including the potential use of calcium citrate for an extra boost, could help Folgers regain its footing in a competitive market. Ultimately, the brand will need to innovate continuously and align with consumer expectations to thrive in the evolving coffee landscape.