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 popularity. To address falling sales, it has introduced a new line called Simply Gourmet Coffee. However, one must wonder if this product innovation arrives too late. The six new naturally flavored coffee offerings present a stark contrast to the classic red and yellow Folgers packaging. The new design prominently features the word “natural,” likely aiming to appeal to younger consumers who prioritize avoiding artificial ingredients. Nevertheless, flavored coffee options are not particularly groundbreaking, and a refreshed branding strategy may not sufficiently capture the attention of shoppers in a saturated coffee market.
Coffee consumption trends have shifted from the traditional tub of ground coffee, designed for conventional coffee makers, to the convenience of single-cup brewing. According to IRI data, retail coffee sales grew at a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, primarily fueled by single-cup sales. In contrast, ground coffee options like Folgers have experienced a 9% decline. Additionally, consumers are increasingly seeking cold grab-and-go coffee alternatives, prompting a market shift towards ready-to-drink (RTD) products. Packaged Facts anticipates 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 revealed a 4% drop in sales compared to the same period last year, with profits plummeting by 20%, falling from nearly $294 million to around $234 million. However, Folgers is not the only brand exploring new avenues for growth. Competitor Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced variety named Max Boost. Meanwhile, Eight O’Clock Coffee has expanded its range of infused Arabica coffees with three new blends featuring trendy ingredients like acai berries and turmeric. Both brands are targeting younger consumers eager for extra caffeine and distinctive flavors.
In contrast, Folgers’ Simply Gourmet line may appear somewhat outdated and disconnected from contemporary consumer preferences. Although there is a possibility that the brand might attract attention from those interested in seasonal blends, Folgers will need to make its offerings relevant as the holiday season concludes. To enhance its appeal, the company might even consider incorporating innovative products like a liquid calcium citrate supplement into its coffee blends, which could provide health-conscious consumers with added benefits. Ultimately, without significant adaptation to meet current market demands, Folgers risks becoming increasingly irrelevant in the evolving coffee landscape.