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MELITTA CELEBRATES SUCCESSFUL FIVE-YEAR TURNAROUND
10th June 2005 Back

Clearwater, FL (June 10, 2005) – More than 112 million Americans drink coffee daily, and for more than a decade, technology, combined with the popularity of flavored coffees, has opened the coffee world to a whole new experience.

It wasn’t that way when Marty Miller started with Melitta in April of 1992. After a dozen years in consumer products, he landed in Clearwater and began his move up to the top job – CEO – that he has held since April of 2000. Always a problem solver of sorts, he was asked by Melitta’s owners to come up with a plan to solve the company’s ailing sales and, in a move that surprised him, was given full reign to implement the plan accordingly. The arduous task of turning things around at Melitta USA Inc. never seemed overwhelming to Miller.

And turn around Melitta he did.

In the fourth quarter of 2004, Melitta surpassed Mr. Coffee as the number-one branded basket coffee filter supplier – certainly no small feat. Melitta attributes the takeover to product quality, a solid brand, wider distribution, and consumer preferred packaging.

"Our success in basket sales catapults us into consumers’ minds and homes," says Miller. "The Melitta product is gaining brand recognition and customer loyalty, which will help us to continue to grow and make a greater name for ourselves."

Part of that growth includes the redesign of Melitta’s coffee pods and product packaging.The newly redesigned universal coffee pods available from Melitta are the first of their kind, and even have 30% more coffee than competitors’ pods. As with the original pods, the redesigned universal pods are wrapped in foil to guarantee the freshest coffee for the freshest cup of coffee. Melitta’s universal coffee pods fit all pod machines on the market, and will be in stores Q3 2005.

To keep its product packaging looking as fresh as its coffee, Melitta completely had a complete redesign.

"Our new look is exciting," said Miller. "The larger graphics, crisper colors, and all-around appealing look will draw consumers’ eyes to our coffees and machines."

In fact, Melitta’s redesign of its World Harvest line packaging garnered the American Corporate Identity Award of Excellence in the Package Design category.

Just how did Miller turn Melitta’s corporate culture around?
The challenge, as he saw it, was to change the culture and breathe new life into the brand, realizing that change would bring tough times and difficult decisions along the way.

"It’s not just one person that turned our company around. It takes a team to accomplish any goal, and this was no exception," explained Miller. Almost shy about the growth experienced since he became CEO of Melitta USA, Miller acknowledges what many CEOs are reluctant to admit. "We had to take a look at the challenges we had, and realize that we were facing these challenges together."

He breathed new life into his management team by going off site for focused and intense meetings. Spouses were invited to events to get to know co-workers. Families were invited to get together for company sponsored bowling and skating events. All of it was designed to promote Miller’s belief that if employees got to know one another beyond just a cursory glance, problem solving and teamwork would emerge the victor. Company goals were altered to be achieved in groups, and they are simple: grow and be profitable.

Miller believes that treating employees well is a management decision and he works to make sure they are part of the process from strategic planning to planning recreational events. Turnover within Melitta is low – and employee satisfaction is high. It must be true – in 2005, Melitta was recognized by the Tampa Bay Business Journal as one of the Top 3 Best Places to Work in the Tampa Bay region. More than 125 Tampa Bay area companies entered the competition.

What’s the secret, you might ask of Miller?
"There are no real secrets in business," he says. "But I do know that with the team we have here at Melitta, we can only go onward and upward.

"As a team, we’ve made tremendous strides to get where we are. There are new challenges and opportunities ahead of us, and I am confident that – as a team – we will meet them head on and make the most of it."

Coffee is second only to oil in terms of dollars traded worldwide, and the specialty coffee market is one of the fastest growing food service markets in the world, making up to $8.4 billion a year in the U. S. alone.

According to the National Coffee Association of U.S.A. (NCA), daily coffee consumption jumped 3% in 2005 to 52%, or 112 million, up nearly 8 million – roughly the population of New York City – from 49% in 2004. This consumption increase illustrates the first major spike after 10 years of slow increases. All told, coffee consumption is up 20% since 1996.

Six in 10 coffee drinkers are aware of the relatively new pod brewers, with more than 2% of the American population owning a single-cup brewer, according to NCA data; 14% say they are likely to buy one for themselves.

The U.S. headquarters for Melitta is located in Clearwater, Florida and is part of the privately held Melitta Group in Minden, Germany. Melitta's North American manufacturing operations are geographically dispersed. All coffee roasting and packaging is done in Cherry Hill, New Jersey. Filter paper and non-electric coffeemaking systems are manufactured in Clearwater, Florida. Melitta electrics and accessories are manufactured, marketed and distributed under a licensing agreement with Salton. For more information, visit www.melitta.com.

 
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Brock communications group