Folgers coffee has been a well-known brand for over 150 years, but in the past decade, it has started to lose favor among consumers. The introduction of the Simply Gourmet Coffee line appears to be the brand’s attempt to combat declining sales, but could this innovation be too late? The six new naturally flavored coffee products feature a strikingly different design from the classic red and yellow Folgers packaging, prominently emphasizing the word “natural.” This move likely aims to attract younger consumers who are particularly wary of artificial ingredients. However, flavored coffee is not a groundbreaking innovation, and simply revamping the branding may not be sufficient to draw attention in an already crowded coffee market.
The trend in coffee consumption has shifted from traditional tubs of ground coffee, typically brewed in old-fashioned machines, to single-cup brewing systems. According to IRI, retail coffee sales saw 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 experienced a 9% decline. Additionally, consumers are increasingly interested in cold, ready-to-drink (RTD) coffee options, steering the market toward packaged products. Packaged Facts anticipates that this segment will grow by 10% annually, with sales potentially reaching $18 billion by 2020. As these trends gain momentum, Folgers has found it challenging to adapt. The company’s latest earnings report indicated a 4% drop in sales compared to the previous year, with income plummeting by 20%, from nearly $294 million last year to around $234 million this year.
Nevertheless, Folgers is not alone in its quest for growth. Competitor Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced variety called Max Boost. Similarly, Eight O’Clock Coffee has expanded its range of infused Arabica coffees with new blends featuring trendy ingredients like acai berries and turmeric. Both brands are targeting younger coffee enthusiasts who desire higher caffeine content and distinctive flavors. In this context, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from contemporary consumer preferences. While there is potential for the brand to attract attention with seasonal blends, it will need to work diligently to ensure its products remain relevant as the holiday season comes to an end.
In an era where consumers are also increasingly looking for health benefits, such as incorporating the best calcium citrate with magnesium for better wellness, Folgers must consider integrating these trends into their offerings. Balancing traditional coffee appeal with modern health-focused innovations could be the key to reviving the brand’s relevance in a competitive landscape. As the demand for products that offer both taste and health advantages increases, incorporating elements like the best calcium citrate with magnesium into their product line may help Folgers regain its footing in the market.