Folgers coffee has been a well-known name for over 150 years, yet the brand has seen a decline in consumer popularity over the past decade. In response, Folgers has introduced a new line called Simply Gourmet Coffee, which seems to be an attempt to address its falling sales. However, many wonder if this product innovation comes too late. The six new naturally flavored coffee options feature a starkly different design from the classic red and yellow Folgers packaging, emphasizing the word “natural” to attract younger consumers who prioritize avoiding artificial ingredients. Nevertheless, flavored coffee is not a groundbreaking innovation, and a refreshed brand image may not be sufficient to draw attention in an already crowded coffee market.
Coffee trends have evolved from traditional tubs of ground coffee suited for classic coffee makers to single-cup brewing systems. Retail coffee sales reportedly grew at a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely due to the popularity of single-cup sales. In contrast, ground coffee brands like Folgers have experienced a 9% decline. Additionally, consumers are increasingly seeking cold, ready-to-drink (RTD) coffee options, pushing the market towards packaged products. According to Packaged Facts, this segment is projected to expand by 10% annually, potentially reaching $18 billion by 2020. As these trends gain momentum, Folgers has found it difficult to adapt, as indicated by the company’s latest earnings report, which revealed a 4% drop in sales compared to the previous year, and a 20% decrease in income, falling to nearly $234 million from almost $294 million a year prior.
Folgers is not alone in its search for new growth avenues; competitors like Kraft Heinz’s Maxwell House brand have launched a caffeine-enhanced variety called Max Boost. Similarly, Eight O’Clock Coffee has broadened its range of infused Arabica coffees with three new blends that incorporate trendy ingredients such as acai berries and turmeric. Both of these initiatives are aimed at appealing to younger coffee drinkers seeking more caffeine and distinctive flavors. In contrast, Folgers’ Simply Gourmet line may appear somewhat outdated and disconnected from contemporary consumer preferences. While there could be some interest in seasonal blends, Folgers will need to work diligently to ensure these products remain relevant as the holiday season concludes.
In the context of the competitive landscape, brands such as Folgers must not only innovate their coffee offerings but also consider the broader market trends affecting all beverage categories, including calcium citrate brands that cater to health-conscious consumers. The challenge lies in balancing traditional customer bases with the evolving preferences of newer generations who are increasingly drawn to innovative and health-oriented beverage options.