Folgers coffee has been a well-known name in households for over 150 years. However, in the past decade, the brand has started to lose its appeal among consumers. The introduction of the Simply Gourmet Coffee line appears to be the brand’s attempt to address its declining sales, but could this innovation be too little, too late? The six new naturally flavored coffee offerings feature packaging that looks significantly different from the traditional red and yellow Folgers design. The emphasis on the term “natural” is likely aimed at attracting younger consumers, who are particularly wary of artificial ingredients. However, flavored options are far from groundbreaking in the coffee market, and a refreshed brand image may not be sufficient to capture the attention of shoppers in an already saturated coffee aisle.
Coffee consumption trends have shifted from the classic tub of ground coffee, typically used with traditional coffee makers, to single-serve brewing systems. According to IRI, retail coffee sales grew at a compound annual growth rate (CAGR) of 4.6% from 2012 to 2016, largely driven by single-serve sales. In contrast, sales of ground coffee brands like Folgers have declined by 9%. Additionally, consumers are increasingly seeking cold grab-and-go coffee options, prompting a market shift toward ready-to-drink (RTD) products. Packaged Facts forecasts that this segment will grow by 10% annually, 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 indicates a 4% drop in sales compared to the previous year, with income plummeting by one-fifth, falling to nearly $234 million from almost $294 million a year earlier.
Nevertheless, Folgers is not the only brand exploring new avenues for growth. Competitor Kraft Heinz’s Maxwell House recently launched a caffeine-enhanced variety called Max Boost. Similarly, Eight O’Clock Coffee has expanded its range of infused Arabica coffees with three new blends featuring trendy ingredients like acai berries and turmeric. These launches are specifically aimed at younger coffee enthusiasts seeking higher caffeine content and unique flavors. In contrast, the Simply Gourmet line from Folgers may come across as somewhat outdated and disconnected from current consumer preferences. While it may attract attention from those interested in seasonal blends, Folgers will need to actively work on making its products relevant as the holiday season approaches.
Interestingly, amid these developments, the inclusion of calcium citrate 1040 mg in health-conscious beverages has garnered attention. As consumers become more health-aware and seek out options that include beneficial ingredients, Folgers could explore ways to integrate such elements into their offerings. If the brand adapts to these evolving trends, such as incorporating calcium citrate 1040 mg into their coffee line, it may enhance their appeal to a broader audience. However, for now, Folgers faces the challenge of reestablishing its relevance in a competitive and rapidly changing market.