Everyman CEO

Everyman CEO

CEO by Dave Szymanski | Tampa Bay Editor

Marty Miller leads Melitta USA into an increasingly competitive future, but he has a good brand name on his side.

Marty Miller is a Detroiter, now a Floridian and CEO, but he has not forgotten his roots and even heads north to see the Tigers, Lions and Red Wings.

Miller, 50, is CEO and president of Clearwater-based Melitta USA, which makes coffee and coffee filters. But Miller is a guy who does the laundry at home, talks to customers at length and even mans the grill during company events.

All this, plus he is out of bed around 4:30 a.m. to exercise and do emails and finishes his workday around 7 p.m. or later many days.

"I don't see myself as any different than any other employee," Miller says. "The position doesn't define you."

In the back of his mind are memories of his father, and other relatives, working hard, sometimes in multiple jobs, to support their families. He doesn't call himself CEO.

"I work at Melitta," he adds. "I don't see myself as any different. I am truly blessed, to have my family, to live where I live, to drive the car I drive. I never take that for granted."

Working for Vlassic Foods prior to Melitta helped shape his management style. The president there would work late, eat at Wendy's with co-workers, spend time with employees and fly in coach late at night.

"That was a $550 million company," Miller says. "I learned a lot from him."

Melitta recently shed part of its operation. It used to contract with another company to make coffee makers with the Melitta name. Recently, it ended that relationship.

"It wasn't part of our core competency," Miller says.

Melitta is a $100 million, independent, family-owned company based in Minden, Germany that makes institutional coffee making machines for restaurants, vacuum cleaner bags and other products. Melitta USA is in Clearwater with 120 employees.

It makes coffee at a plant in Cherry Hill, N.J. and filters in Clearwater. Melitta, which owned land in Florida, moved the U.S. headquarters from New Jersey to Clearwater 14 years ago. Miller and a new management team took the helm of Melitta USA in 2000.

Miller joined Melitta in 1992 as its national sales manager.

A changing industry

One look down the supermarket aisle tells the story: The number of coffees and coffee products has exploded. Then there are the number of places that serve fresh coffee. Some of those places, like Dunkin Doughnuts, now also sell coffee under their own label.

"It's a very competitive industry," Miller says.

While the company cannot afford an international advertising campaign, it focuses on coffee education through its Web site and it has tastings so the public can try Melitta's coffees.

"I think Starbucks has done a great job of bringing the coffee culture up," Miller says. "People find they can get a good cup in supermarkets and elsewhere. Starbucks raised that awareness."

One big consumer shift has been from robust, hot and black coffee in the past to a variety of coffee today that appeals to different pallets.

"It's like wine," Miller says. "It used to be red or white. Today, look at the explosion of product."

To respond to that changing taste profile, Melitta has developed a collection of dessert coffees, which change during the seasons. The flavors include Strawberry Shortcake and Pumpkin Spice.

"It's so much more detailed than it used to be," Miller says.

Looking to the future, Miller says Melitta will look at other products that could broaden its product line. "Tea is an explosion," Miller says. "Loose tea in bags. That's where some of the growth is coming from."

Selective buying

Coffee prices recently jumped, putting pressure on the industry to control costs. Melitta rejects 90% of the coffee beans it reviews.

For its higher-end coffee, it has a select number of growers: Estates in Columbia, Hawaii and Costa Rica.

For its other varieties, it buys coffee beans from all over the world, including Columbia, Brazil and Costa Rica. It only buys Arabica beans, not the Robusta type used by other companies.

Melitta is in 47% of U.S. stores, including Publix and Sweetbay.

It's important for Melitta to nurture its well-known name brand, but also its people, Miller says. At the headquarters office, there are holiday parties and trips to Tampa Bay Rays and Lightning games. Employees also volunteer to do things for the community.

"I manage by walking around," he says. "We have open forums. People can tell me anything. They have direct access to me."

There's also an "Ask the president" section on the Melitta USA Web site. Recently a customer from Canada had a complaint and Miller called her personally.

"I can't see why I wouldn't call," Miller says.

On April 26, the company will celebrate its 100th anniversary with a family-style social gathering at its headquarters at 13925 58th St. N. in Clearwater. Miller made sure they had German beer.

REVIEW SUMMARY

Company: Melitta USA

Industry: Coffee and coffee filters

Key: Continue to produce quality products and look for opportunities in the beverage sector.