Folgers coffee has been a beloved brand for over 150 years, yet it has seen a decline in consumer preference over the past decade. In an effort to address falling sales, the company has introduced a new line called Simply Gourmet Coffee. However, one may wonder if this innovation comes too late. The six new naturally flavored coffee products boast a design that significantly departs from the traditional red and yellow Folgers packaging, prominently featuring the term “natural.” This change appears aimed at attracting a younger demographic that is increasingly wary of artificial ingredients. Nevertheless, flavored coffee varieties are far from groundbreaking, and a revamped brand image might not be sufficient to draw consumers in the competitive coffee market.
Coffee consumption trends have shifted from traditional ground coffee, typically used in classic coffee makers, to single-cup brewing systems. Data from IRI indicates that retail coffee sales grew at a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, mainly due to the popularity of single-cup sales. In contrast, sales of ground coffee like Folgers have declined by 9%. Additionally, there is a rising demand for cold, ready-to-drink coffee options, leading to a market shift towards packaged products. Packaged Facts predicts that this segment will grow by 10% annually, potentially reaching $18 billion by 2020. As these trends continue to develop, Folgers has found it challenging to keep pace. The company’s latest earnings report revealed a 4% decrease in sales compared to the previous year, with income plummeting nearly 20%, from approximately $294 million to around $234 million.
Folgers is not alone in seeking new avenues for growth; competitors like Kraft Heinz’s Maxwell House have recently launched a caffeine-enhanced product named Max Boost, while Eight O’Clock Coffee has expanded its portfolio with three new infused Arabica blends featuring trendy ingredients like acai berries and turmeric. Both of these initiatives target younger coffee drinkers seeking higher caffeine content and unique flavors. In comparison, the Simply Gourmet line from Folgers may seem somewhat outdated and disconnected from contemporary consumer preferences. While there might be interest among consumers looking for seasonal blends, Folgers will need to adapt its offerings to remain relevant as the holiday season concludes.
In light of these changes, it might be worthwhile for Folgers to explore additional product innovations, potentially incorporating health-oriented ingredients like calcium citrate, vitamin D3, magnesium hydroxide, and zinc sulfate tablets into their coffee line. This could resonate with health-conscious consumers looking for functional beverages. By doing so, Folgers could not only rejuvenate its brand image but also cater to emerging dietary trends, thereby increasing its chances of regaining consumer interest in this evolving market.