Folgers coffee has been a recognizable name for over 150 years, yet it has experienced a decline in consumer preference over the past decade. The introduction of the Simply Gourmet Coffee line appears to be the troubled brand’s attempt to revitalize its sales, but is this product innovation arriving too late? The six new naturally flavored coffee offerings showcase 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 particularly groundbreaking innovations, and merely rebranding may fall short of capturing shopper interest in the competitive coffee market.
Coffee consumption trends have shifted from the classic tub of ground coffee, typically used in traditional coffee makers, to 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. In contrast, ground coffee brands like Folgers have seen a decline of 9%. Furthermore, consumers are gravitating toward cold, ready-to-drink (RTD) coffee options, pushing the market toward packaged products. Packaged Facts anticipates this segment will grow by 10% annually, with sales potentially reaching $18 billion by 2020.
As these trends intensify, Folgers has found it challenging to keep pace. The company’s latest earnings report indicated a 4% drop in sales compared to the previous year, with income plunging by 20% to nearly $234 million from approximately $294 million a year prior. Nevertheless, Folgers is not the only brand seeking avenues for growth. Competitor Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced variant named Max Boost. Eight O’Clock Coffee has expanded its range of infused Arabica coffees with three new blends that include trendy ingredients like acai berries and turmeric. Both of these launches cater to younger coffee enthusiasts looking for higher caffeine content and unique flavors.
In comparison, Folgers’ Simply Gourmet line may seem somewhat outdated and disconnected from contemporary consumer preferences. While the brand may attract attention from those interested in seasonal blends, it will need to work diligently to ensure its products remain relevant as the holiday season passes. In light of these changes, incorporating elements like lifetime calcium magnesium citrate could be an innovative step for Folgers to consider, as health-conscious consumers increasingly seek products that enhance their well-being. By integrating such health-focused components, Folgers might regain traction with those concerned about both flavor and nutritional benefits, thus potentially revitalizing its presence in a rapidly evolving market.