Government Report: Personal Consumption of Flowers, Plants Rises

Consumer spending on floriculture reached $20.765 billion in 2006, up from a revised $19.738 billion in 2005, according to updated statistics from the U.S. Department of Commerce's Bureau of Economic Analysis (BEA). The change represents a 5.5 percent increase for the year. The increase was less than the 7.7 percent increase reported from 2004 to 2005, however it exceeds the modest 2.2 percent increase the year before. The new information was released March 1 and is subject to subsequent revisions.

"It is energizing to know consumers continue to love the products we sell," says SAF's president-elect Rod Saline of Engwall Florist and Greenhouse in Duluth, Minn. "It is our individual business challenge to do more to differentiate our products and services to meet the increased demand for floriculture products."

The revised figure for 2005 was contained in the bureau's table 2.4.5U titled, "Personal Consumption Expenditures by Type of Product."  The annual totals for 2003 through 2005 were increased in this latest data release, as shown below. These data are available in an interactive table on the bureau's Web site. It can be displayed by month, quarter or annum. 
 

--Ira Silvergleit
isilvergleit@safnow.org

 
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Political Analyst Shares Election Insights

Charlie Cook, editor and publisher of "The Cook Political Report," will win the Tour de France next year. Well, before Rudy Giuliani gets the Republican nomination, that is. "I'll do it without steroids, too," he said.

That was just one of the many quick-witted insights Cook shared March 12 during his speech at the kickoff breakfast of SAF's 27th Annual Congressional Action Days in Washington, D.C. During his speech, the venerable political analyst took the crowd of growers, wholesalers, retailers and suppliers through his election predictions, candidate by candidate.

Here are some highlights from Cook's address:

Rudy Giuliani. Cook is convinced the former New York mayor won't get his party's bid because he is a liberal Republican backed by conservatives. Once those conservatives understand his positions on the issues, they won't support him -- even if they see him as a strong leader, Cook says. 

Mitt Romney. Although Cook called the former Massachusetts governor "the smartest elected official I have ever met," and praised his experience and campaign team, he said his religion (Mormon) and "ideological metamorphosis" (he changed from a relatively moderate to conservative Republican) could hurt his chances at the Republican nomination.

Sen. John McCain (R-Ariz.). Cook praised McCain's "excellent team" and his experience; however, the senator's age, health and strong opinions on Iraq could hurt him in the race for the presidency. "He is a maverick, a free spirit," said Cook, and because of that "people don't trust him." Still, Cook gave the impression McCain is the most likely choice for the Republican nomination.

Sen. Barack Obama (D-Ill.). "I have never seen anything like it," Cook said of Obama's early presidential campaign.  The young senator's lack of experience might hurt him, but "when you're hot, you're hot," Cook said, "and if you are hot today, you probably won't be in eight or 12 years."

So who does Cook see as having the best chance of becoming the Democratic nominee? "H-Rod." Better known as Sen. Hillary Rodham Clinton (D-N.Y.).

"Her Senate office attitude is, 'We don't make mistakes," he said, praising her team's organization and "Prussian" efficiency.

"Does [her campaign] lack soul? Does it lack spontaneity?  Of course it does," Cook said. "They probably even have a plan for spontaneity... As long as her husband behaves himself, I have a hard time seeing anyone stopping her."

As for who will win the presidency, it depends on "how many boots we have on the ground in Iraq" when election time comes, said Cook.

--Vanessa Machir
vmachir@safnow.org

 
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Questions Remain for Houston's Cooling Facility

A cooling facility for perishables currently under construction at the Bush Intercontinental Airport in Houston could help turn the city into a new hub for imported flowers. Local wholesalers, however, are unsure if the city's ground transportation will be able to support the increased load.

The shell of the 61,000-square-foot facility was finished last week. When all construction is finished local florists and wholesalers could have access to cheaper, fresher product shipped directly through Houston.

"We offer an avenue [alternative to Miami] for growers to ship their stuff to the United States, but we don't all of the sudden expect to clip off 25 percent of what's going into Miami," says Jeremy Garner, senior associate at Trammell Crow Company, the facility's developer. "We are looking to grow this slowly and at a smart pace."

While the facility has not been leased by anyone, "we are in the process of talking to a couple of prospects and have had interest from several South American countries and growers," Garner says.  If a grower wants to use the space for storing perishables, then it would establish a relationship with an airline or ground handler. "At the end of the day, we will end up leasing to an airline or ground handler," says Garner.

According to Jan Hall, president of the Allied Florists of Houston, a number of Costa Rican  growers already have committed to shipping to the Houston Airport. "It's a definite go for them," she says.

Still, other logistical questions remain. Local florists and wholesalers, for instance, see the lack of refrigerated trucking available in Houston as a problem.

"If Costa Rica is going to be dropping off in Houston, [somebody] needs to figure out how to get [the flowers] to other markets," says Jim Haley of Pike's Peak of Texas, a wholesale florist in Houston. "The Houston market isn't large enough to justify the expenditure."

Renee Carpenter of Memorial City Florist in Houston agrees. "To me, it's still in the planning stage," she says. "We don't have the transportation in place, and there isn't a person or group set up yet to do it."

Rick Vacar, director of the Houston Airport System, however, insists the transportation problem will work itself out.

"If the product comes in, it will find its way around," he says "[Houston] has the largest international port in the U.S. now -- the system is here for trucking, it's just not related to airport perishables yet."

--Vanessa Machir
vmachir@safnow.org

 
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Aldik Senior Management Takes Over

Floral décor company Aldik, based in Moorpark, Calif., is independent once again, since the March 16 senior management buyout of the company and its Hong Kong subsidiary (Sourcedecor) from Decorative Concepts, Inc. Director of Marketing Zury Segal says the buyout puts Larry Gold, son of founder Richard Gold, in the CEO spot and should "provide a platform for Aldik's design-driven leadership in the home décor industry to flourish."

Segal says Aldik's core business will remain floral and foliage, but they plan to increase and strengthen the company's holiday, seasonal and home decorative categories. "With . . . new additions to the product development and design staff," Segal says, "Aldik will be growing its 'lifestyles'-based product introductions as early as this spring and summer at all of the prominent national shows."

Larry Gold says the senior management team is integral to the future success of the company and will remain intact.

Aldik, founded by Alan and Richard Gold in 1958, was independently owned until 1998, when it was acquired by Decorative Concepts, Inc. Aldik has permanent showrooms in Atlanta, Chicago, Dallas, Las Vegas, Los Angeles, New York, San Francisco and Hong Kong.

--Kate Penn 
kpenn@safnow.org

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Crissey Explains New AFE Role

A more focused approach to planned giving and increased public relations within the floral industry are just two of the items topping the agenda of Sten Crissey, AAF, the new vice president of development and industry relations for the American Floral Endowment.

"We're trying to augment our approach to fundraising through planned giving, which is about looking ahead at one's estate and establishing a legacy within the industry that would be permanent and lasting," he says.

Crissey, a former SAF president, stepped into his new role at AFE in February after selling his 65-year-old flower shop in Seattle. A 2005 inductee of SAF's prestigious Floriculture Hall of Fame, Crissey has been involved with AFE for about five years, making him a likely candidate for the new position, which requires him to act as both cheerleader for the group and ambassador to the industry.

"So much of what the Endowment does is under the radar," insists Crissey, who was chairman of the Endowment's board before stepping into his current staff role. "In the past, we've been very successful with our fundraising phone-a-thons every five years, but we need to establish a PR campaign to engage industry members with the Endowment on a more regular basis so that people stay aware of what we're accomplishing."

Some of those key accomplishments include AFE's multi-step review process -- including early proposal review by SAF's Grower Council -- to protect the integrity of its research, and savvy financial management, Crissey says.

 "We've collected $8.8 million while distributing more than $14 million, because the money we put into research comes from the proceeds of our investments," he says. "I think that's an exciting story."

--Mary Westbrook
mwestbrook@safnow.org

 
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OFA Moves into Association, Event Management

OFA is getting into the association and event management business, according to a March 20 press release sent from the association. OFA's executive director, John Holmes, says the organization has been approached by various organizations about partnering on "everything from grassroots advocacy to . . . managing entire organizations," which is what they do with America in Bloom. After year-long deliberations by the board, staff and a strategic planning committee, the board voted last month to pursue opportunities to manage other organizations or events.
 
OFA president Doug Cole stresses that the OFA member is still the focus. "The key for OFA is making certain these partnerships enhance and not detract from our core purpose, to serve all of our stakeholders (members, attendees, exhibitors, etc.) in the floriculture industry."

--Kate Penn
kpenn@safnow.org

 
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Congressional Action Days Attendee Shares his Experience

Chris Beytes of Grower Talks Magazine in Batavia, Ill., has never been into politics. He slept through his civics classes as a kid. But he attended SAF's 27th Annual Congressional Action Days, despite not knowing the "lingo" or the issues.

He came out of the experience, however, feeling like a Capitol Hill star. " ... out on the street, little kids were staring at me in my suit, wondering if I was the president (I didn't tell them otherwise). The whole deal was quite a heady experience," he says of Congressional Action days in his article "Mr. Beytes Goes to Washington," published in GrowerTalks' "Acres Online" weekly newsletter. Read more about his experience.  See photo highlights of Congressional Action Days.

--Vanessa Machir
vmachir@safnow.org

 
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State Association To Host Author

On April 21, the New Hampshire State Florists' Association is hosting an evening with Amy Stewart, author of "Flower Confidential -- the Good, the Bad and the Beautiful in the Business of Flowers."

Valerie Dawes of the New Hampshire State Florists' Association booked Stewart as a speaker a few months ago after reading an advanced copy of her book this fall.

"I fell in love with it. I read it in a weekend," she says. "I think the book is really valuable to the industry ... it opened my eyes to many subjects I wasn't aware of" says Dawes.

Stewart will present a PowerPoint presentation geared toward the industry and lead a discussion. The event begins at 6 p.m. Registration is $15. For more information, contact Valerie Dawes at (603) 738-5691 or e-mail nhfloral@comcast.net.

--Vanessa Machir
vmachir@safnow.org

 
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First Class Post Rises by Two Cents

Popping a letter into the mail -- or a flier, thank you note or promotional piece -- could be slightly more expensive as of May 14.

The U.S. Postal Service decided Monday to accept the independent Postal Regulatory Commission's recommendation to raise the first-class mail rate from 39 cents to 41 cents.

"We praise the PRC for its early and thoughtful recommended decision," Board of Governors Chairman James Miller III said in a statement, "and appreciate the comprehensive analysis the Postal Service staff provided in its rate proposal."

USPS also decided, however, that a new "forever" stamp will retain its value, regardless of future rate increases. The forever stamp is 41 cents and can be used for any future 1-ounce letter mailing without extra postage.

Under the new rates, postage for postcards will now cost 26 cents, up from 24 cents. The cost to mail a standard 2-ounce letter, such as a wedding invitation, decreased from 63 cents to 58 cents.

--Mary Westbrook
mwestbrook@safnow.org

 
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Fewer Americans Using Cash

Cash isn't king anymore -- at least when it comes to paying for daily purchases. That's the opinion of the Pew Research Center, which recently found that "just 37 percent of Americans say they mainly use cash for their everyday purchases."

The group also found that 31 percent of Americans rely mainly on debit cards and 16 percent say they use credit cards. As for other non-plastic forms of payment, only 15 percent of Americans rely on checks.

Read more about current spending habits in the center's report "What Americans Pay For -- And How."

--Mary Westbrook
mwestbrook@safnow.org

 
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Reader Feedback: Employee Appreciation Kudos

For Chris Ehrman, vice president of  John Ehrman's Allburn Florist in Eerie, Pa., Clay Atchison's idea to promote Employee Appreciation Week, as reported last week, was a winner. Ehrman writes:

"I like the idea of expanding [Administrative Professionals Week] to Employee Appreciation Week. It is the natural progression at this time. For several years now we have put up signs in the store proclaiming it "National Floral Employee Appreciation Day." We have lunch for our employees; we give them a gift and a bottle of wine.  I make labels for the wine -- last year I used a picture of a gerbera with the text, "Floral  Employee Appreciation Wine," vintage 2006  It's a great way to boost morale and let our staff of 20 know that we truly appreciate their hard work and creative talents. I will cross promote [Administrative Professionals Day] this year as Employee Appreciation Day. This should help those who question, 'Should I do something for this week or not?'"

Did you spot a good idea in this week's issue? Did we miss a bigger point somewhere? We want to hear your thoughts. E-mail vmachir@safnow.org

--Mary Westbrook
mwestbrook@safnow.org

 
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Product Spotlight: SAF Preferred Picture Visa

Looking for a unique way to promote flowers? Just apply for the SAF Preferred Picture Visa credit card. After your card arrives, use it instead of the card you now carry. The striking floral photography on the face of the Preferred Picture Visa card proudly distinguishes your affiliation with the floral industry and SAF. You can also use your card to earn WorldPoints, which can get you cash, merchandise, gift certificates and more. And, if all that's not enough, you'll also be supporting SAF with every transaction at no additional charge to you.

--Vanessa Machir
vmachir@safnow.org

 
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Talk On the Forums

One veteran retailer member is wondering whether ditching her 27-year-old cooler and buying a new one will reduce her utility bills. Chime in.

Also on the forums:
Donation requests
Accounting programs

Start your own discussion.

--Vanessa Machir
vmachir@safnow.org

 
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Daylight Saving Boosts Sales

Almost 60 percent of readers responding to last week's e-poll said that sales have increased, compared to the same period last year, since daylight saving went into effect. Forty-one percent said sales did not increase.

--Vanessa Machir
vmachir@safnow.org

 
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Former Employees Tapped for Holiday

Eighty-six percent of florists hired additional staff to supplement
their workforces for Mother's Day in 2006. Where did those extra bodies
come from? According to the survey, former employees made up the pool of
workers most likely tapped (32%) followed by friends (26%) and family
members (14%). Other sources included students, homemakers, temp agencies and seniors.

Source: SAF Online 2006 Mother's Day Survey of Retail Florists with
e-mail addresses. Based on 503 responses (response rate = 13.6 percent).

--Ira Silvergleit
isilvergleit@safnow.org

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