Melitta Group Annual Report 2023

Melitta North America

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Melitta North America produces filter papers and roasted coffee, both for consumers under the Melitta® brand and for the B2B market. Its core markets are the USA and Canada but its products are also marketed in Mexico, Central America, and the Caribbean. It also distributes coffeemakers and accessories in the North American market.

Key figures' 23

Sales in € thous.

2023

180,876

2022

179,021

Employees, full-time employees, annual average

2023

148

2022

181

Headquarters

Clearwater, Florida, USA

Managing Director

Martin T. Miller

Websites

www.melitta.com / www.melitta.ca

Brand

Logo Melitta

Our positioning

In North America, Melitta® is the leading brand of premium coffee filters, known for its heritage, superior quality, and sustainability features and certifications.
In the B2B coffee segment, Melitta North America is a brand-oriented, premium coffee roaster partner with extensive capabilities to service the needs of a broad range of customers and highly flexible capabilities.
In B2C coffee segment, under the slogan “Join the Pursuit for Better Coffee and Better Planet”, the Melitta® brand stands for high-quality products with a strong commitment to sustainability that meet the needs of discerning customers.

Our strategy

In its B2C filter paper business, Melitta North America aims to defend and further expand its market leadership in branded filter paper. To achieve this goal and differentiate itself from the competition, the operating division focuses on improving the functionality of its products, driving innovation, and further strengthening its sustainability positioning.
In its B2C branded coffee business, the aim is to strengthen the company’s market position in Canada and to reinvigorate its US business. The focus is on maintaining profitable volumes, enhancing margins and cost management, and rolling out further product innovations.
In its B2B business, Melitta North America is targeting profitable growth and focusing on the diversification of its customer base, expansion into new segments, and the development of new product and packaging innovations. Moreover, the B2B team will expand into high-growth segments such as emerging brands and cold coffee.

Market and business trends in 2023

In 2023, there were multiple challenges (high inflation, historically high retail prices, supply chain shortages, and global market uncertainty) that drove consumers to choose cheaper retail channels (discount stores, mass markets, dollar stores) with increased demand for private label products. The filter coffee category continued to decline (expansion of single serve coffee and growth of alternative coffee beverages) and volume growth has shifted to discount stores and the internet, where competition is no longer geographically limited. There has been a significant increase in competitors from all over the world who are penetrating Amazon and other online retailers where there are less hurdles to negotiate for distribution. Despite these challenges, Melitta maintains its dominant market share in branded filter paper.
In B2C coffee, it has been challenging with increased competition, volatile green coffee prices, and higher retail prices. In B2B coffee, it has also been challenging with continued category volume declines, especially in Tin format, and the slow Away-From-Home segment recovery.

Outlook 2024

In 2024, it is expected that the filter business will continue to decline. The aim is to maintain the company’s dominant market share. Marketing activities in the B2C filter business will concentrate on defending market standing and differentiation through preserving a two-brand strategy at retail and strengthening our brand positioning in sustainability through marketing and innovation.
The coffee category is also expected to have limited growth. The aim for B2C is to focus on improving margins and maintaining profitable volumes. The aim for B2B is to focus on diversifying our customer base and improving profitability by expanding into new segments such as emerging brand partnerships and cold coffee product innovation.
In addition, we will be strengthening our commitment to innovation with our investment in the M-Lab in Cherry Hill that will allow us to create new products, reach new customers, expand into new channels and provide trainings and education.

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Highlights
of the Year

Highlights
of the Year

The Future
of Coffee

The Future
of Coffee