German coffee group Melitta has acquired a majority stake in the South African roaster Caturra for an undisclosed amount.

Caturra roastery is based in Cape Town and its products are available in retail and hospitality channels.

The company was founded by Annette Becker and Ryan Palos in 1994. Both Palos and Becker have retained a minority stake in the roastery.

“Growing in new markets and internationalising our business are important for Melitta coffee in Bremen if we are to achieve the growth and earnings targets we have set ourselves,” Melitta Europe’s managing director, Matthias Rensch, said.

“We are convinced that we can make excellent use of the Melitta’s extensive expertise for the growth and expansion of Caturra – and that we can also open up numerous new sales opportunities on the African continent for the Melitta Group’s business units.”

Caturra also sells machines and non-coffee products such as water and tea. Melitta’s European coffee division will oversee Caturra.

The Melitta group was founded in 1908 by Melitta Bentz and is headquartered in Minden, Germany. Bentz is credited with patenting the first paper coffee filter.

Since then, the family-owned coffee business has expanded globally and sells coffee products, machines and coffee filters.

Coffee prices have surged in recent weeks as severe weather conditions have hampered crops in key growing regions, particularly Brazil and Vietnam.

A report from GlobalData, Just Drinks’ parent company, showed coffee prices surged in March and early April, with cheaper Robusta beans closing as high as $3,700 per tonne and more premium Arabica hitting $2.10 per pound, the highest level in over a year and a half. The data research group predicted total coffee production will reach 172.7 million bags, down from the previous estimate of 176 million.

Around three billion cups of coffee are consumed around the world every day, according to the International Coffee Organization (ICO).

The ICO reported coffee production has failed to match consumption levels in the past two years, primarily attributed to severe cyclical weather patterns and ongoing impacts of climate change.

GlobalData predicts consumption will increase year-on-year to 170.2 million bags. “The roasting industry has been running down green coffee stocks at an unprecedented pace, seemingly to avoid having to pay up-front in the futures market.”

"German coffee group Melitta scoops share of South African roaster Caturra" was originally created and published by Just Drinks, a GlobalData owned brand.

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