Strong growth in the country motivates Melitta to plan investments
Valor Econômico - 03/25/2008
After more than doubling its size in the last five years, Melitta do Brasil now wants to expand its sales outside the South-Southeast axis of the country. As a main platform of the company outside Germany, where the group was founded almost 100 years ago, Brazil is considered strategic for the multinational and is in the company's plans to receive new investments and consolidate its position in this segment. With sales of R$ 534 million (US$ 303.4 million) in the Brazilian market in 2007, 25% more than in the previous year, Melitta also progressed in participation, in a market characterized by strong competition. There are more than 1.2 thousand companies and 2 thousand coffee brands in the country. In 2008, the year it celebrates one century in the world and 40 years in Brazil, Melitta studies expanding its activities here. Timid in acquisition movements in the roasting area, the group plans a movement in this direction. But it has not given any clues. The last step for such was taken in 2006, when the group bought Café Bom Jesus, a company from the State of Rio Grande do Sul. The results in that State showed that the company's strategy was correct. "We went from a 6.4% participation to 9.3% in the State last year", affirmed the group's president in the country Bernardo Wolfson. Leader in sales of vacuum-coffee packages, the group also dominates the market of paper filters. This segment represents 30% of the group's total sales. Five years ago it corresponded to 50%. Brazil is Melitta's base to South America. The group exported US$ 1 million to Argentina, Uruguay, Chile, and Bolivia. The figure is small, but, according to Wolfson, the growth to these markets is significant. "We increased exportations in 50% over 2006", affirmed the executive. Making investments in factories in South America is not in the group's plans. With roasters in Avaré (SP) and another one in the State of Rio Grande do Sul, the group also has a paper filter factory in the city of Guaíba (RG). In the next days, the company is to put a new line of coffee in the market called "Farm Flavors".