Capsules and acquisition priorities of Melitta

Methodical and cautious, the President and CEO of Melitta Brazil Bernard Wolfson anticipate the issue shortly after the beginning of the exclusive interview to the value. "A lot of people ask me when we throw coffee in capsules and make new acquisitions. Answer that for that to happen, some criteria must be met, "he says, assertive.
The question in both cases is understandable. There is already today in Brazil approximately of 120 capsules coffee brands being marketed, including the two volume leaders on the market of coffee roasted and grinded, Pestle and 3corações. As third in this ranking, according to Nielsen, it is natural that the Melitta manages expectations. And, also for the same reason, the company is always remembered in times of consolidation, as the coffee market lives today.
"These are priorities of the company, but we still don''t have anything [set]," says the President of Melitta, company had gross revenues of 1.1 billion in Brazil R$ in 2015. In the world, the German multinational privately had net revenue of 5.3 billion, 17% R$ from the Brazilian operations.
In a category as the capsules, in which there is already a high number of players, the Melitta considers that it is necessary to have a differential. "If we fail to give added value to the product, we will not launch," says Wolfson, after quoting, without details, criteria such as product quality and consumer opinion and "trade".
But the Executive knows that ignore the changes in the market is impossible. "We''re looking for [solutions] because we know that the consumer will incorporate different ways of making coffee," he says. Today, he adds, there are more than 1 million machines for pods in Brazilian homes. But in 10 years, says, "more homes will have".
The Melitta pods sells only in the US and the product is compatible with Keurig system machines, multibebidas, which does not exist in Brazil.
The German multinational-which is still a leader in the segment of paper filters for coffee in the country-is also attentive to possible acquisitions, at a time when smaller coffee companies suffer pressure on its margins. "Continuously received proposals [of companies wanting to be bought] and we''re open. We''re going to do at the right time ", he assures us. This year alone, the coffee industry in the country had two operations: buying brands of coffee and derivatives CLA Iguaçu soluble coffee by 3corações and Select by Jacobs Douwe Egberts (JDE), which owns in Brazil of the pestle, Coffee brands, Damascus and Caboclo.
While the new steps are under consideration, the Melitta casts another year of advancement of its sales in Brazil. After growing 11 percent a year over the past three years, reaching R$ 1.1 billion in 2015, the projection is to achieve a gross sales of R$ 1.3 billion this year, despite the recession in the country. According to Wolfson, "the pillars of growth" should be the coffees sold by the company under the Melitta and Bom Jesus, coffee filters and export growth.
Last year, even with the crisis, the company''s sales exceeded 1 billion & R designed earlier. "Consumers don''t stop for coffee," he says. For him, which has helped the company is "the consistency of actions," such as "continuous investment" in quality and brand. Between 2012 and 2015, Melitta destined, according to him, R$ 290 million in media, shares with customers and consumers, and market research.
In addition, in the period, the company has invested 50 million R$ in increasing the capacity of the factories-coffee in Avaré (SP) and Bom Jesus (Rio Grande do Sul) and paper filters and industrial roles in Guaíba (RS), on quality projects, change of head office and SAP system implementation.
The result of the Melitta Brazil in 2015 reflects, according to Wolfson, an 18% increase in sales with sales of roasted coffee, soluble and grain and also a 22 percent advance in revenue from sales of coffee filters and accessories for preparing the drink. There was also growth in exports, which represent a small part of the business.
For this year, the forecast of Melitta is investing 100 million R$ more on media and actions with consumers and customers. The factories will also receive a further r $ 15 million in funding to expand the capacity in coffee (8%) and filters (10%).
While recognising that 2016 is being "a difficult year, as the purchasing power is not booming and there are increased costs", the President of Melitta Brazil States that the company will continue its work to enlarge the volumes marketed here. "We remain optimistic about the Brazil", reinforces.
The company also hopes to expand the exports of its products this year. Until last year, only attended the MERCOSUR countries, either directly or with local distributors. Now, also will sell the Andean Venezuela, Peru, Ecuador as and Colombia, which were previously served by Melitta USA.
Since 1968 in Brazil, the company expects its sales in the country reaches 1.5 billion R$ ''s House in two years, when will complete 50 years here. Founded in 1908, the Melitta is a family owned company with production units also in Germany, the United Kingdom and the United States. Its biggest market is Europe.