Folgers coffee has been a well-known brand for over 150 years, yet it has seen a decline in consumer popularity over the past decade. The newly introduced Simply Gourmet Coffee line appears to be the company’s attempt to address dwindling sales, but could this innovation be too little, too late? The six new naturally flavored coffee offerings present a stark contrast to the traditional red and yellow Folgers packaging. The design emphasizes the term “natural,” likely aiming to attract younger consumers who are increasingly wary of artificial ingredients. However, flavored coffee varieties are not exactly groundbreaking, and merely refreshing the branding may not suffice to grab attention in the crowded coffee market.
Coffee consumption trends have shifted from the classic ground coffee tub, used in traditional coffee makers, to single-cup brewing systems. According to IRI, retail coffee sales grew at a CAGR of 4.6% from 2012 to 2016, largely driven by single-serve sales. In contrast, ground coffee products like Folgers have experienced a 9% decline. Additionally, consumers are leaning towards cold grab-and-go coffee options, prompting a market shift towards packaged ready-to-drink (RTD) products. Packaged Facts projects this segment will grow by 10% year-over-year, potentially reaching $18 billion in sales by 2020. As these trends gain momentum, Folgers has struggled to keep pace. The company’s latest earnings report indicated a 4% decrease in sales compared to the previous year, with net income dropping nearly 20%, from around $294 million to approximately $234 million.
Folgers is not alone in seeking new growth avenues; competitor Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced product called Max Boost. Eight O’Clock Coffee has also expanded its range of infused Arabica coffees with three new blends featuring trendy ingredients like acai berries and turmeric. These new offerings are tailored for younger coffee enthusiasts who crave more caffeine and unique flavors. In comparison, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from current consumer preferences. While it might attract attention from those interested in seasonal blends, Folgers will have to make significant efforts to ensure these products resonate as the holiday season concludes.
Interestingly, as consumers become more health-conscious, some may also consider supplements like algaecal calcium and strontium citrate supplement for bone health, blending wellness with their coffee experience. This trend underscores the need for Folgers to adapt not only to coffee preferences but also to the broader lifestyle changes influencing purchasing decisions. Ultimately, to reclaim its position in the market, Folgers will need to embrace innovation that aligns more closely with these evolving consumer expectations.