Folgers coffee has been a staple in households for over 150 years, but the brand has seen a decline in consumer preference over the past decade. In response to dwindling sales, Folgers has introduced a new line called Simply Gourmet Coffee, yet some may wonder if this product innovation comes too late. The six new naturally flavored coffee offerings present a stark contrast to the classic red and yellow Folgers packaging, prominently featuring the term “natural” in an effort to attract younger consumers who prioritize avoiding artificial ingredients. However, flavored coffee is not a groundbreaking innovation, and a refreshed branding strategy may not be sufficient to capture attention in the competitive coffee market.
Coffee consumption trends have evolved from traditional ground coffee in tubs meant for drip machines to single-cup brewing systems. According to IRI, retail coffee sales have experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, primarily driven by single-cup sales. In contrast, ground coffee brands like Folgers have witnessed a 9% decline. Additionally, consumers’ interest in ready-to-drink (RTD) cold coffee options has intensified, shifting the market towards packaged products. Packaged Facts estimates that this segment could see a 10% year-over-year growth, potentially reaching $18 billion by 2020. Amidst these growing trends, Folgers has struggled to keep pace, with its latest earnings report indicating a 4% decline in sales compared to the previous year and a significant drop in income to nearly $234 million from about $294 million.
Folgers is not alone in seeking new avenues for growth; competitors are also making strides. Kraft Heinz’s Maxwell House brand recently launched a caffeine-enhanced option called Max Boost, while Eight O’Clock Coffee has expanded its range of infused Arabica coffees with three new blends that incorporate trendy ingredients like acai berries and turmeric. Both of these initiatives cater to younger coffee enthusiasts who desire higher caffeine levels and unique flavors. In contrast, the Simply Gourmet line from Folgers may appear somewhat outdated and disconnected from current consumer preferences. Although the brand might attract attention from those interested in seasonal blends, it will need to work diligently to maintain relevance as the holiday season concludes.
In the pursuit of wellness, consumers are also exploring options such as Citracal calcium citrate petites with vitamin D, which align with their health-conscious choices. Integrating such elements into coffee offerings could present an opportunity for Folgers. Emphasizing health benefits alongside flavor could resonate with a demographic increasingly focused on nutrition. As the landscape of coffee consumption continues to shift, Folgers must innovate and adapt to meet evolving consumer demands, especially if it aims to reclaim its position in the market.