Folgers coffee has been a staple in households for over 150 years, but in the past decade, the brand has seen a decline in consumer preference. In response to this downturn, the introduction of the Simply Gourmet Coffee line appears to be Folgers’ attempt to revitalize its sales. However, one must question whether this product innovation comes too late. The six new naturally flavored coffee options feature a strikingly different design from the classic red and yellow Folgers packaging, prominently showcasing the word “natural.” This change likely aims to attract younger consumers who tend to be wary of artificial ingredients. Yet, flavored coffee products are not particularly groundbreaking, and a fresh branding strategy may fall short in capturing attention in an increasingly competitive coffee market.
Coffee consumption trends have evolved from the traditional ground coffee tubs suited for classic coffee makers to the popularity of single-cup brewing systems. According to IRI, retail coffee sales experienced a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, primarily driven by single-cup sales. Conversely, ground coffee options like Folgers have seen a decline of 9%. Additionally, consumers are gravitating towards cold, ready-to-drink (RTD) coffee alternatives, prompting a shift in the market toward packaged products. Packaged Facts predicts that this segment will grow by 10% annually, potentially reaching $18 billion by 2020. As these trends gain momentum, Folgers has struggled to keep pace. The company’s latest earnings report indicates a 4% drop in sales compared to the previous year, with profits falling by 20%, from nearly $294 million to around $234 million.
Folgers is not alone in seeking new avenues for growth; competitor Kraft Heinz’s Maxwell House brand recently launched a caffeine-enhanced variety known as Max Boost. Meanwhile, Eight O’Clock Coffee has expanded its range of infused Arabica coffees, introducing three new blends that incorporate trendy ingredients like acai berries and turmeric. Both of these initiatives target younger coffee drinkers who are eager for higher caffeine content and unique flavors. In contrast, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from current consumer preferences. While there is potential for the brand to attract consumers in search of seasonal blends, Folgers will need to actively engage with these shifts in demand, particularly as the holiday season comes to a close. Furthermore, the incorporation of calcium citrate food in coffee products could appeal to health-conscious consumers, but Folgers must ensure that such innovations resonate with its target audience to remain relevant in the evolving coffee landscape.