Of coffee and filters...

2

In the 17th century, when coffee fi rst became popular-ized in Europe, it was most commonly prepared by simmering for 5 minutes or by simply pouring boiling water onto the ground beans. With coffee’s elevation to the nobility’s favored beverage in the 19th century, countless inventors were inspired to construct intricate devices for extracting the elusive aroma and taste of the bean. Most of these newfangled contrap-tions were no more than decorative improvements on the traditional preparation techniques, though. At the turn of the twentieth century, the most widespread fi ltration methods used either metal or porcelain sieves. Neither were particularly successful, however, as they either allowed too much of the coffee grounds to cloud the precious beverage or were so slow that the coffee was cold before it could be served.

Once upon a time …

Melitta Bentz – Housewife Inventor

Over 300 years of European coffee culture were to pass before an enterprising housewife established a coffee preparation technique which was to radically change the habits of coffee lovers throughout the world. In 1908 Melitta Bentz of Dresden, Germany, fi rst hit upon the idea of using paper as a way of keeping the unwanted grounds out of her coffee. She drilled a number of holes in the bottom of a brass pot and placed a piece of her eldest son’s school blotting paper into it.

Realizing its potential, she took her invention to the Royal Patent Offi ce in Berlin and on

Once upon a time…

Emil Hugo and his wife Amalie Auguste Melitta Bentz

3

apartment. The fi ve members of the family assembled and packed the fi lters in their home and were also the fl edgling company’s sales organization.

Success was not long in coming. The new “fi ltration ap-paratus” received gold and silver medals at the 1910 In-ternational Hygiene Exhibition in Dresden. The company began to expand fast and in the 1920’s moved into new premises to enable it to begin with its own production of coffee fi lters.

Melitta Bentz and the “original fi lter” of 1908: a 13-centimeter high brass pot using “fi ltration paper”.

June 20, 1908, Melitta Bentz, née Liebscher, of Marschallstrasse 31, Dresden, received confi rmation that her “coffee fi lter with curved and indented bottom and with slanting extraction holes” used in combination with “fi ltration paper” had been granted legal protection as a regis-tered utility good. The patent was

offi cially published in the “Patentblatt” of July 1908.

The company ‘M. Bentz’ had a starting capital of 73 old German pfennigs and a room in the family’s Dresden

4

At the onset of World War One, paper became scarce and the German government banned the import of cof-fee beans. Melitta Bentz ran the company herself until the end of the war, as her husband Hugo was called to duty. Filter production stopped and Melitta turned to selling cartons in order to feed her family. After the war, the company grew fast and expansion plans were quickly implemented. With the launch of export activi-ties in the Czech Republic and Switzerland in 1922, ca-pacities at the Dresden base soon reached their limits. However, at this time there were no suitable premises for expansion in Dresden.

During their search for suitable premises in Germany, Melitta and Hugo Bentz discovered an unused choco-late factory building in Minden, which they bought. The company was subsequently registered with the Commercial Register in Minden, which has been the company’s base ever since. On Maundy Thursday 1929, Melitta and 55 employees moved to Minden, together with the company’s existing machinery. Four days later, the new factory was up and running.

Business as usual after the collapse

Off to Minden …

The move from Dresden to Minden

1932 saw the company’s fi rst generation change: the majority stake in Melitta-Werke Aktiengesellschaft was transferred to Melitta’s two sons, Horst and Willy. However, until her death in 1950 Melitta Bentz remained the “social conscience” of the company. From 1930 onward, the company paid its employees a Christmas bonus. In 1932, the number of vacation days was increased from 6 to 15 days per year and the working week reduced to 5 days (1933). Under Melitta Bentz’s pa-

tronage, the com-pany launched its “Melitta Aid” system, a social fund for company employees.

Social conscience

5

6

The second generation of company owners was dedicated to one objective: expansion. Melitta not only conquered the household segment with coffee fi lters and fi lter papers, but also the commercial sector. The fi lter papers themselves were constantly refi ned and improved: in 1936, the company launched the conical fi lter still used throughout the world today. The typical Melitta fi lter bags were developed to fi t the new fi lter design and the classic Melitta logo was adopted.

Birth of a global brand

Birth of a Global Brand

Horst Bentz, son of Hugo and Melitta, took over the company “Bentz & Sohn” on March 20, 1930. He retired in 1980.

7

During World War Two, Germany’s entire peace-time production was stopped and facilities were or-dered to produce goods for the war effort (ammu-nition belts, pots and pans etc.). At the end of the war, the undestroyed Melitta factory in Minden was requisitioned by the Allied troops and used as mili-tary accommodation for twelve years. The produc-tion departments were relocated within Minden as far as possible – even in local pubs. Melitta Bentz survived to experience the subsequent success of the rebuilding period; in 1950, sales reached DM 4.7 million.

Destruction: 12 years of makeshift production

Provisional admi-nistration building after World War Two

8

In the 1950s, Europe’s most modern paper machine was built by Melitta in Minden. A steady stream of investments followed: in the company’s anniversary year of 1958, total sales grew by 26.5%. With a series of acquisitions and product develop-ments, Melitta proceeded to expand its activities further: in addition to coffee, filter papers, cof-feemakers and household goods (food wrappings made of paper/plastic/aluminum, vacuum cleaner bags, cleaning cloths and sponges), Horst Bentz’s vision of a “well laid table” also included porcelain, sweets, cigars and fruit juices. The various com-pany acquisitions were integrated into the Melitta Group.

“Economic Miracle” reaches Minden

The foundation of foreign subsidiaries was also gathering pace – first in Europe, then overseas. With paper mills and coffee roasting plants in Brazil and the USA, Melitta laid the foundation for its successful foreign business, from which it still benefits today.

Expansion: unlimited growth

Europe’s most modern paper machine was put into operation in the 1950s

9

All in all, the company experienced a period of tre-mendous growth in this period (as did many other German companies). Goods had to be allocated, as demand soon outstripped supply; 30% of all staff were recruited from abroad, as the local labor market was completely exhausted. The company’s markets were booming well into the 1970s – with no end in sight. By the end of the 70s, the Melitta Group’s 10,000 employees were generating sales of DM 1.6 billion.

In 1980, Horst Bentz stepped down as general part-ner of the company and was replaced in this func-tion by his sons Jörg, Thomas and later Stephan. The Group’s operating business was divided among several legally independent companies with their own (non-family) managing directors.

The Group’s US subsidiary was opened in 1963 in Cherry Hill, Philadelphia.

The first South American subsidiary was founded in Sao Paulo, Brazil, in 1968.

10

Eventually, however, the period of rapid growth also ended for Melitta. The company’s strategy shifted from expansion to greater concentration on its core competencies. The wide variety of products amassed over the years was proving both unwieldy and unprofi table. As markets began to mature, it became apparent that unbridled growth also meant rising costs and dwindling margins. The Melitta Group divested itself of all activities and interests which either offered little prospect of growth (por-celain, sweets) or where the market was already in decline (cigars).

Renewed focus on core business

The Group’s structure at this time was somewhat confusing at fi rst sight. Melitta was involved in such diverse activities as domestic and commercial coffee preparation, coffee roasting, food wrappings, garbage bags, vacuum cleaner bags, tea making and its own machine building. In order to organize these products and activities more clearly for its consumers and trading partners, the Group launched a com-pletely new brand strategy in 1988. Five strategic business fi elds were cre-ated, each with their own clearly defi ned brands: Melitta® (Coffee Enjoy-ment), Toppits® (Fresh-ness & Flavor), Swirl® (Convenient Cleaning), Cilia® (Tea Enjoyment) and Aclimat® (Better Living Environment). The change was both risky and cost-intensive, but has since proved highly effective for the Group.

New brand strategy

A new brand strategy

11

The key question of Melitta’s general partners today is: how – and with which products – can the Group continue to generate growth in future? As a family-owned company with limited resources, the focus is clearly on leveraging existing core compe-tencies and markets while continuing to develop the Group’s own innovations.

Melitta today

A major realignment of the Group’s brand strategy was introduced in 1988 with the creation of fi ve sepa-rate business fi elds, each with its own brands.

12

To protect itself from its nu-merous imitators, Melitta launched its typical red and green packs in 1925. The brand still guarantees consumers a consistent and high level of quality.

Typically Melitta

Melitta® – the brand for superior coffee enjoyment

Typically Melitta

13

The famous Melitta logo was first used in 1932. After minor modification in 1937, the trademark was regis-tered by the German Patent and Trademark Office on December 28, 1939.

Melitta – the name of a Dresden housewife – is now a major group of internationally active branded goods manufacturers.

The Melitta® brand enjoys global recognition for its filter papers and coffee, as well as for its domestic and commercial coffee preparation equipment. Around the world, the brand has become a byword for expertise in all questions of coffee enjoyment.

Following the original brass filter design, the 1920s and 1930s saw the introduction of aluminum and earthenware filters and round filter papers.

14

Successful Melitta campaigns from the Thirties to the Sixties: the “Original Melitta” publicity service provided free promotion material for store displays and window dressing.

The customer magazine “Melitta Information” pre-sented the latest products and sales strategies.

In the 50s and 60s, Melitta held annual shop window decoration contests, awarding prizes for the best designed or most original displays. Each year had its special motto. In 1952, for example, the competition was called “Coffee the Melitta way – more aroma –1/3 saved”.

Advertising

Advertising

Says the father: ”Did you know, the fi lter’s called ‘Melitta’, Joe.”

Drawing by E.O. Plauen, 1939

15

One of Melitta’s fi rst commercials was run in Berlin cinemas in 1938 under the title “Discrepancies” (“Pity”). The script and design were provided by cabaret artist Werner Fink and designer Jupp Ernst. The commercial was for the new 102 fast-drip fi lter.

Excerpt:“Of course, in the days when we still had real coffee a good fi lter made sense. But today? Yes, today more than ever, proper fi ltration is absolutely vital. Coffee made of corn, malt or other substances can also taste good, if pre-pared in the right way. Melitta fi lters every type of coffee. Try it and see. Filtered coffee simply tastes better!”

Shop window display in the Fifties

16

As a purveyor of brand-name products, Melitta has always been at the cutting edge of contemporary marketing techniques. Starting in 1926, Melitta sent its coffee fi lter demonstrators into all leading household appliance stores in Germany. The idea was picked up again in the 50s when housewives were invited to try out the fast-drip fi lter for four weeks – only then did they have to pay or return the product. Sales tripled within a year.

Melitta invites

Melitta invites

Melitta demonstrators served over two million cups of coffee in 1960.

17

1908Melitta Bentz invents the coffee fi lter with round fi lter paper insert

1932Square, fl at fi lter papers are pushed into the new conical fi lter with the aid of a „plunger“.

1936/37The design of the coffee fi lter is changed in 1937: the bottom of the fi lter is now a straight slit. The fi lter papers we know today as Melitta Filter Bags are specially created and patented to fi t the new

fi lter. They are launched in 1937 and still regarded as the perfect shape for fi ltering coffee.

The perfect shape

Filter paperNot only the packaging of Melitta’s fi lter papers has changed since 1908, but also the quality of the pa-per used. This is continually developed by Melitta’s own research and development specialists.

Key milestones:

Melitta fi lter paper packs from the 60s and late 30s

18

1989A new texture was developed: Melitta fi lter bags with aroma pores. Melitta was also the fi rst company to launch natu-ral brown fi lter paper made from unbleached cellulose.

1992Melitta started using oxygen-bleached fi lter paper: the new process is much kinder to the environment.

1998Melitta launched its new Bamboo Filter Bags: a product designed to support the use of renewable resources.

2001The new Melitta „Mild“ and „Strong“ fi lter bags enabled coffee drinkers to infl uence the fl avor of their coffee according to their own particular prefer-ence.

18

A new texture was developed:

19

1908 Original fi lterThe fi rst manufactured fi lter was invented by Melitta Bentz. A 13-cm high brass pot using “fi ltra-tion paper”.

The Melitta fi lterOver the years, the Melitta coffee fi lter has changed in shape, material and color.

1910 Round fi lterLike the original fi lter, this fi lter generation con-sisted of three parts: a removable water distributor, the fi lter body and a sieve (aluminum) onto which the fi lter paper was placed.

1919 Round fi lterAfter the fi rst aluminum version, the round fi lter was later produced from porcelain and stoneware and decorated with various designs. These models were produced right up to the 1970s.

1936 Fast-drip fi lter, newThe decisive breakthrough came with the pointed shaping of the fi lter’s bottom. The Melitta fi lter bags we know today were created and patented to fi t the new fi lter.

20

1932 Fast-drip fi lter, originalThe fi rst conical-shaped Melitta fi lter. Its round, fl at bottom with drip holes were characteristic of this fi lter generation. The fl at, square-shaped fi lter paper had to be pressed into the fi lter with the aid of a special “plunger”.

1954 Fast-drip fi lter, newMelitta introduced a new range of colored fi lters in glazed stoneware. A line of matching coffee pots was also launched.

1960 Fast-drip fi lter, plasticMelitta developed the fi rst plastic fi lter. Originally transparent, the fi lters were soon available in a variety of colors.

2001 Melitta stainless steel fi lterThe world’s fi rst stainless steel fi lter was launched in combination with the premium coffeemaker Linea Unica deluxe.

21

22

After already selling coffee pots in the 1930s, Melitta started production of complete coffee sets in the 1950s

In 1956 the company designed and launched its fi rst coffee set: the Minden. The range was ex-panded in the following years.

Coffee set

Tableware

23

Top designers, such as Jupp Ernst, Lieselotte Kantner and Luigi Colani created successful lines for Melitta.

In the 1930s Melitta already offered a children’s coffee fi lter: an exact replica of the aluminum round fi lter.

In 1957, Melitta began production of a complete children’s coffee set (“Minden”) in various pastel shades.

As part of its strategic alignment, Melitta decided to abandon its tableware production in 1992.

A coffeemaker which went down in histo-ry: the MA 120 from 1965

“8 cups of coffee in 6 minutes – at the press of a button. Fast – aromatic – good”. With this slo-

gan Melitta launched its MA 120 coffee maker in 1965 for DM 120. The high price indicates the status of coffeemakers as luxury goods at this time.

Coffeemakers“... at the press of a button”

Up to the 1960s coffee preparation was still something of a ritual: the bean grinding and the brewing all being done by hand. New, electric kitchen appliances broke with this tradition. ‘Fast and convenient’ was the motto of the dec-ade – and coffee preparation was no exception. Electric coffee makers gradually replaced the tra-ditional manual fi ltering methods. Melitta was among the fi rst to supply the new machines.

A small excerpt from Melitta’s coffeemaker history:

gan Melitta launched its MA 120 coffee maker in 1965 for DM 120. The high price indicates the status of coffeemakers as luxury goods at this time.

24

Papaya-green and man-go-orange – the colors of the Seventies

In the years that followed, numerous successors to the legendary MA 120 were

launched on the market. They featured the latest technological developments and came in a wide variety of sizes and designs.

The world‘s smallest coffee machine

In the mid-Seventies, Melitta launched „the world‘s smallest coffee machine“ – the aromaboy. The cute

2-cup coffeemaker is still in demand over a quarter of a century later as a

cult design classic.

Detachable hotplate

With the launch of the MA 140 in 1976, Melitta presented Ger-many‘s fi rst and only coffeemaker with detachable hotplate.

2-cup coffeemaker is still in demand over a quarter of a century later as a

25

Refi ned technology and improved aroma

The MA 731 launched in the late Seventies featured Melitta‘s patented pre-brew fi lter system based on the siphon principle. The new technology meant that the ground coffee was fi rst fully soaked – as with manual preparation. A further benefi t was that the fi lter no longer dripped when the jug was removed.

Fully automatic brewing technol-ogy „as if by hand“

Melitta caused quite a stir in the early Nineties with the launch of its new Interval Brewing System (IBS). The innovative system collected a specifi ed quantity of hot water in a separate cham-ber before releasing it in a gush at regular intervals. Based on the principle of manual preparation, the new technology meant that the ground coffee was thoroughly soaked and swirled around – thus infl u-encing the extraction behavior of the coffee.

Fully automatic brewing technol-ogy „as if by hand“

Technical developments of the MA 8000 range (early Eighties) included: a removable water tank to aid handling and a threefold scale for small, medium and large cups.

26

Changing values: individual design and sophisticated materials

The Melitta Look range was launched in 1998 and featured regularly changing design elements which blended in with the latest furniture and fashion trends. The range also included so-called „feature models“ – coffeemakers with added benefi ts, such

as a special aroma switch.

27

Premium models, such as the Linea Unica, feature high-quality materials and exclusive design.

28

Single-serving and fully automatic coffee machines

With the launch of the “MyCup” in 2004, Melitta entered the premium single-serving coffeemaker segment – coffee, pads and machine in perfect harmony.

The fully automatic “Caffeo” coffee machine is ide-ally suited to the preparation of international coffee specialties. Featuring new milk frothing technology,

dual-chamber coffee bean storage and a sepa-rate chamber for ground coffee, the

new machine offered several USPs on its launch in 2005.

Technical development and chic design

Melitta coffeemakers are constantly being optimized and refi ned to refl ect the company’s passion for sophisticated technology, distinctive design and perfect coffee enjoyment.

At the beginning of the Sixties, the Melitta brand was already well-known in Ger-many and many other countries as the specialist for coffee prepa-ration products. In 1962 Melitta decided to add ground, vacuum-packed coffee to its range - the fi rst company in Germany to sell coffee in this form.

Originally, the company roasted its coffee beans in Minden – Melitta’s administrative and manufactur-ing base. With the acquisition of the Carl Ronning

coffee roasting plant in Bremen in 1966, however, the coffee business took on a new dimension and today Melitta is the largest roaster in Ger-many’s traditional coffee town.

Coffee enjoymentFor the ultimate in coffee enjoyment

29

In 1984, Melitta added a “Premium” blend to its range of ground, roasted coffees (“Auslese”, “Milde Sorte”, “Feiner Mocca”, “Spezial decaffeinated”, “Extra Mild”).

Melitta was the fi rst supplier to launch a premium coffee above its over top blends.

In 1997, Melitta Coffee’s entire range was re-launched with new packaging and blends: “Melitta Café Auslese”, “Melitta Café Auslese Mild”, “Melitta Café Harmonie decaffeinated”, “Melitta Café Montana” and “Melitta Café Extra”.

30

In 2005, Melitta launched its “Bella Crema” range – top-quality, 100% arabica beans specially suited to fully automatic coffee machines.

The range was extended in 2001 with the launch in Germany of Melitta Cappuccino.

317

Individually portioned in fi lter paper: various blends of MyCup coffee pads have been on the market since 2004.

Catering

Melitta began producing fi lter systems for catering establishments during its very early days in Dres-den. In 1936, Melitta was already displaying coffee fi lters for restaurants at the fi rst catering exhibition in Meissen/Saxony.

32

Coffee for the masses

In 1958, Melitta began to establish a separate divi-sion for the catering sector and the manufacturing of commercial fi lter coffee machines.

Five years later (1963), the company star-ted production of the fi rst smaller coffee machines designed specifi cally for the catering trade. The fi rst professional buffet coffee machine (KFM 300) was launched in 1973.

33

A new generation of fi lter coffee machines for the food service sector (400 series) was presented in 1978.

A new generation of fi lter coffee machines for the food service sector (400 series) was presented in

In 1986 the catering division became an independ-ent subsidiary under the name Melitta Aromatech-nic.

In 1988, the company was renamed as Melitta SystemService and acquired a majority stake in Swiss espresso machine manufacturer Cafi na AG (Hunzenschwil). In the same year, the new C90 fully automatic espresso machine with revolution-ary ceramic piston was launched in Switzerland.

34

With its acquisition of French espresso machine manufacturer Reneka in 1989, Melitta SystemServ-ice was able to offer the world’s widest range of commercial coffee machines for the catering sector.

In 1990, Melitta SystemService launched the world’s fi rst-ever fully automatic commercial coffee machine with paper fi ltration system – the Melitta 3000.

The fully automatic Cafi na C60 espresso machine represented a commercial breakthrough for Melitta SystemService in 1994.

The “Melitta cup”, launched in 2002, was capable of serving single cups of freshly prepared special-ties such as cappuccino, latte macchiato, schümli and espresso. The fully automatic and highly com-pact machine required no separate milk refrigera-tion unit.

The fully automatic “Melitta c5” and “Melitta cup” were the only machines of their kind in Germany to receive the “HACCP compliant” symbol. HACCP is the binding hygiene standard throughout Europe for the catering and social services sector.

Melitta SystemService, the operating division responsible for commercial coffee preparation, offers a full range of equipment for the large-scale preparation of fi lter coffee and coffee specialties under the Melitta brand, as well as a wide variety of coffee blends and accessories.

35

Melitta opened its fi rst subsidiary in the USA in 1963 and has since established itself as a full-range supplier of coffee enjoyment products in North America.

The product range com-prises fi lter papers, fi lters, coffee, coffeemakers and accessories.

36

Melitta USA / Melitta Canada

Melitta USA is the market leader for fi lter papers and a highly successful player in the niche segment for specialty coffees.

International

37

In the fi eld of coffeemakers, Melitta USA has been cooperating since 2000 with local partner Salton Inc., which also markets the new single-serving “Melitta one:one”.

The administration and paper converting facilities (coffee fi lters) are based in Clearwater, Florida. Melitta also operates its own coffee roasting plant in Cherry Hill, Philadelphia.

From its base in Toronto, Melitta Canada supplies the Canadian market with coffee, fi lter papers and coffeemakers.

“Melitta one:one”.

38

International

In 1968, Melitta ventured into the Brazilian market. Today, Melitta do Brasil is recognized as one of the leading market players in the “home of coffee”.

Melitta do Brasil

With 160 articles – from vacuum-packed roasted coffee to instant coffee, fi lter papers and coffee fi lter systems – Melitta do Brasil offers a range of products which is even larger than that available in Germany.

39

The company is now market leader in the segments “vacuum-packed coffee” and “fi lter papers”.

In addition to its headquarters in Sao Paulo, Melitta also operates a coffee roasting plant in Avaré and a paper plant for the production of fi lter papers in Porto Allegre.

Impressum

Published by:Melitta Unternehmensgruppe Bentz KGMarienstrasse 88, 32425 MindenEditing and design: Melitta Corporate PR

Internet: http://www.melitta.infoE-mail: PR@mbv.melitta.de

© 2005

® Registered trademark of a member company of the Melitta Group