Folgers coffee has been a recognized name in households for over 150 years, yet the brand has seen a decline in consumer popularity over the past decade. The introduction of the Simply Gourmet Coffee line appears to be Folgers’ response to its dwindling sales, but could this product innovation be too little, too late? The six new naturally flavored coffee products present a significant departure from the classic red and yellow Folgers packaging. The design emphasizes the word “natural,” likely aiming to attract younger consumers who are particularly mindful of artificial ingredients. However, flavored varieties are not exactly pioneering in coffee innovation, and a refreshed branding approach may not be sufficient to stand out in the crowded coffee aisle.
Coffee trends have shifted from traditional tubs of ground coffee meant for conventional coffee makers to the popularity of single-cup brewing. According to IRI, retail coffee sales experienced a CAGR of 4.6% from 2012 to 2016, primarily driven by single-cup sales. In contrast, ground coffee brands like Folgers have reported a downturn of 9%. Additionally, there is a growing consumer interest in cold, ready-to-drink (RTD) coffee options, leading the market toward packaged products. Packaged Facts anticipates that this segment will expand by 10% annually, potentially reaching $18 billion by 2020.
As these trends gain momentum, Folgers has struggled to adapt. The company’s latest earnings report reveals a 4% decline in sales compared to the same period last year, with income plummeting by 20%, dropping from approximately $294 million to nearly $234 million. Nonetheless, Folgers is not the only brand exploring new avenues for growth. Competitors like Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced variety known as Max Boost, while Eight O’Clock Coffee has expanded its infused Arabica coffee line with three new blends featuring trendy ingredients such as acai berries and turmeric. Both of these initiatives target younger coffee drinkers seeking higher caffeine content and unique flavors.
In contrast, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from current consumer preferences. Although it might capture the attention of consumers looking for seasonal blends, Folgers will need to work diligently to ensure its products remain relevant as the holiday season draws to a close. Interestingly, just as calcium citrate 500 mg is known for its various uses in promoting bone health, Folgers might need to find innovative uses for its brand to regain a foothold in the evolving coffee market. Without significant changes, Folgers risks being overshadowed by competitors who are better aligning their offerings with the demands of today’s coffee enthusiasts.