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HEADLINES
Syndicate Sales Acquires Brody
On Saturday, Feb. 16, Syndicate Sales Inc., in Kokomo, Ind. officially acquired the E.O. Brody Company. Syndicate also bought the retail florist portion of Indiana Glass from The Anchor Hocking Co.
"We are truly excited to welcome the Brody product line to the Syndicate Sales family," said Del Demaree, Jr., chairman and CEO. "We firmly believe it will be better for the floral industry to have both Syndicate and Brody glassware delivered weekly on 'Big Green' trucks."
Syndicate Sales, Inc. was founded in 1946 by Del Demaree, Sr. and his wife Fern. The company is a manufacturer, importer and distributor of more than 1500 floral products.
David Garcia, president of the Pete Garcia Company, which represented Brody in about half of the U.S., said via e-mail that his company has been advised not to comment on the acquisition. "We are seeking a resolve to this situation, which we were made aware of for the first time on Monday, Feb. 18. Our efforts will be to continue to support our wholesale floral customers in order to satisfy the entire industry."
The E.O. Brody Company was founded by Ernest Oscar Brody in Cleveland back in 1958. The company exclusively sold utility glass floral containers to florists as well as through wholesalers who would turn around and market the product to florists. The Lancaster Colony Corporation of Columbus, Ohio, took over the E.O. Brody Company in 1971. The company name was switched to "Brody Company" in 1988 after merging with Lancaster Colony's housewares division in Cincinnati.
At press time, E-Brief editors were awaiting additional details on the acquisition from Syndicate Sales, including confirmation on whether the company has retained the Brody Company's employees; representatives from Brody had not returned calls.
--Morgan Schimminger
mschimminger@safnow.org
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Valentine's Day: Up and Down with the Weather
Preliminary information from an informal sample of the SAF Retail Council and Wholesale Council members indicates that Valentine's Day sales were either up, mostly in the single digits, or flat compared to a year ago. Many were comparing their results to the dismal sales they experienced during the 2007 holiday, when dreadful weather pummeled much of the country and beat down sales.
"Sales followed the weather," St. Louis wholesaler Steve Frye of Baisch & Skinner notes. "And where the weather was good, so were sales." As Scott Kremp of Kremp Florist in Willow Grove, Pa., acknowledges, "Good weather equals good holiday."
The holiday was not without its challenges. Florists noted sales lost to non-traditional vendors, especially low-end purchases. Chris Drummond, AAF, of Plaza Flowers, in Norristown, Pa., noted a decline in orders, but an increase in dollars. "I guess when customers want a high-end gift they are choosing the florists. For a $30 bouquet, they're shopping elsewhere."
As Ken Young, AAF, of Phoenix Flower Shops in Scottsdale, Ariz., describes, "Competition was fierce in our market from the non-traditional florist segments... Most of the major supermarket chains set up temporary floral departments in their parking lots utilizing tents and semi trailers."
Some business owners, including Erlene LeBorgne, owner of Rosemont Floral in Portland, Maine, were thankful they had cut back on staffing and product, in response to the sluggish economy. Eric Levy of Hillcrest Garden, Inc., of Paramus, N. J., says the fact that many retailers waited until the last minute to see how orders were developing made for a stressful holiday. Those retailers had to scramble for roses in the final hours, says Levy, who sold a significant number of roses to retail shops on the last day.
Long hours of preparation paid off, according to Katy Miller, of Dillon Wholesale in Bloomsburg, Pa. "We worked very early and very diligently this year to pinpoint quantities...margin goals to hit," she says. Encouraging customers to pre-book their orders also helped.
Wholesaler Kevin Priest, AAF, of Cleveland Plant & Flower Company in Parma, Ohio, says his company maintained its pre-holiday credit policies for shops that were on COD during the holiday period — a strategy that may have cost some sales.
A couple of shops reported declines in incoming wire orders, despite significant marketing by the wire services. Online orders were up by double digits for some, including David Mitchell of Mitchell's Orland Park & Frankfort Flower Shop in Orland Park, Ill. Mitchell notes that more retail customers were "shopping around on the Web" to find more competitive prices.
With few exceptions, product quality was good, but availability was somewhat sketchy. Kurt Schroeder, AAF, AIFD, PFCI, of Delaware Valley Floral Group in Sewell, N.J., noted delays of three to five days in receiving product. Tina Rojahn Elsafy of wholesaler Rojahn and Malaney in Milwaukee stated via e-mail, "Our VD was VERY tough," noting that roses from South America didn't arrive at her business until Tuesday, Feb. 12 at lunchtime. "Not good," she said.
"Product was definitely late, late and later ...some never arrived," reported Lou Lynne Moss, AAF, AIFD, PFCI, of The Flower Shoppe in Pratt, Kan. But she ordered more red roses than last year and got by nonetheless, reporting sales gains among the best so far. Mitchell, on the other hand, says product availability was "very good," despite running out of roses on Feb. 13 and ordering loads more to fill orders.
Florida retailer Tina Stoecker, AIFD, PFCI, of Design of the Times Florist in Melbourne, Fla., noted how the product she received improved dramatically as the holiday progressed, describing it as "beautiful." Quality was "excellent, probably the best ever," according to Kremp, and for Schroeder the holiday was "... the smoothest in many recent years."
What makes a florist happy on Valentine's Day? "Sold our last rose at 6:00 p.m. Yeah!!," said a gleeful David Boulton, AAF, of Flowers by George in Arlington, Wash. Wholesaler Frye put it this way: "The industry needed a good holiday, and this bodes well for the spring." Miller sums it up: "A successful Valentine's Day feels very good."
Tell us about your Valentine's Day experience — SAF's online survey of retailers hits e-mail inboxes on Friday. If you are a retailer who does not receive our survey and would like to, send your e-mail address to surveys@safnow.org. Results of the survey will be appearing later in SAF publications and on the Web site.
--Ira Silvergleit
isilvergleit@safnow.org
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A Record-Breaking January: Worst Month Since 1969
January was a bad month for retailers, according to an article in Advertising Age. Not only was the month record-breakingly bad, but it also, much to the frustration of retailers, came on the heels of a less than stellar holiday season.
"The month goes down as the worst January on record for retailers since the International Council of Shopping Centers began tracking same-store sales among U.S. retailers in 1969," the article states. And gift cards sales, usually the sure bets for sales boosts, dwindled too. Eric Beder, of the research firm Brean Murray Carret & Co. said this about gift cards: "By shifting sales away from higher-margin periods, [gift cards] exacerbate declines; this month should provide solid evidence for investors to ignore the 'fool's gold' of gift cards."
Some of the stores that were most affected by the downed January sales include: superstores Wal-Mart (0.2 percent increase) and Target (1.1 percent decrease); department stores Macy's (7.1 percent decrease), JC Penny's (1.9 percent decrease) and Kohl's (8.3 percent decrease); and luxury retailer Nordstrom (6.6 percent decrease). According to the article, Wal-Mart's sales were particularly disappointing because even though there was a slight increase the company said January's "results were below expectations, as were gift card redemptions."
The only victor in January sales was Costco (7 percent increase), which coincidentally, also performed well during the holiday season.
Can you relate? Weigh in on the issue, in this week's E-Poll.
--Cassandra P. Foster
cfoster@safnow.org
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Proposed ATPA Extension Protects Duty-Free Flowers
Flowers coming into the United States from Colombia, Ecuador, Bolivia and Peru may continue to arrive duty-free, according to a proposed extension of the Andean Trade Preference Act (ATPA). The ATPA was scheduled to expire on Feb. 29, but on Feb. 14, the House Ways and Means Committee approved H.R. 5264, extending the duty-free status through Dec. 31, 2008. House Ways and Means Committee Chairman Charles Rangel (D-15-N.Y.) sponsored the bill, which effectively maintains benefits for eligible products under the ATPA. If this extension does not go through, U.S. importers of record will begin paying duties on flowers from those four countries on March 1, 2008.
The bill is expected to go to the House floor for debate the week of Feb. 25.
Both Colombia and Peru have negotiated free trade agreements (FTAs) with the United States. Once fully ratified and implemented, those FTAs will provide permanent duty-free status for flowers exported to the U.S. from those two nations. Currently, duty-free status must be extended periodically under the rules and procedures outlined in the ATPA.
"Action on the FTA with Colombia has been blocked repeatedly this year because of concerns Colombia is not doing enough to stem the violence against trade unionists and to prosecute those responsible," says Drew Gruenburg, SAF's chief operating officer. Gruenburg adds that FTAs have not been negotiated with Ecuador or Bolivia due to concerns regarding the protection of U.S. investments in those two countries. A Senate companion bill similar to Rep. Rangel's has not yet been introduced.
In related news, last week the U.S. Chamber of Commerce hosted a U.S./Colombian Trade Promotion Event designed to highlight the value of passing a U.S./Colombia FTA. Secretary of Commerce Carlos Gutierrez presented the Administration's point of view and Reps. Kevin Brady (R-Tex.) and Jim Moran (D-Va.) spoke for proponents in Congress. Other featured speakers included H.E. Luis Guillermo Plata, the Colombian Trade Minister, and Augusto Solano, president of Asocolflores.
--Morgan Schimminger
mschimminger@safnow.org
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SAF Members Head to Capitol Hill to Lobby Industry Concerns
More than 110 SAF members from 40 companies and 27 states are taking their business concerns to Washington, D.C. next week for SAF Congressional Action Days. They'll be talking about the need for immigration and estate tax reform and stressing the importance of funding for the Floriculture and Nursery Research Initiative. "It's absolutely vital that legislators understand the down-home impact of these issues before they're asked to vote on them," says SAF Government Relations Committee Chairman Kevin Priest, AAF, of Cleveland Plant & Flower Company in Parma, Ohio. "A constituent who takes the time to come to Washington is going to have the greatest impact. That's why this effort is so important."
Here are some of the key talking points they'll be taking to Capitol Hill on Tuesday, Feb. 26:
• Immigration Reform. SAF supports AgJOBS, which has three components: creating a workable H-2A guestworker program; providing a way to allow experienced but unauthorized farm workers already in the U.S. a chance to earn the right to transition to legal status; and enacting provisions to secure our borders and improve security.
• Estate Tax Reform. The estate tax inhibits family businesses and farms from growing and surviving beyond one generation. Money used to plan for the estate tax is money not reinvested into employees and the business. The tax forces small business owners to pay lawyers and accountants and purchase life insurance in order to ensure all they have worked to build is not eliminated.
• Research. The research priorities of the Floriculture and Nursery Research Initiative focus on needs of national importance and are consistent with those in the budget of the USDA's Agricultural Research Service (ARS): improved product quality to enhance competitiveness; improved crop production tools; improved protection against pests and diseases; and environmental stewardship.
In addition to talking points, Congressional Action Days participants will walk into legislators' offices trained in professional lobbying techniques and practiced presentation strategies designed to make the most of the information and skills each state delegate brings to the table. And, they'll have spent two hours getting inside legislators' minds during Monday afternoon's Congressional Insights workshop — so they'll know how to make legislators sit up and pay attention.
Attendees also will have gathered insider perspective from Secretary of Commerce Carlos Gutierrez, Rep. Jim Walsh (R-N.Y.) and veteran broadcast journalist Chris Wallace. Supporters of SAFPAC, SAF's political action committee, will be treated to a performance by Washington's renowned satire troupe, The Capitol Steps, on Monday evening. Members of the SAFPAC Gold Club will hear from Rep. Adam Putnam (R-Fla.) during the Gold Club Lunch on Tuesday. Attendees will wrap up Tuesday at SAF's much anticipated Congressional Reception.
Watch for Congressional Action Days news reports and photos online next week, in upcoming issues of E-Brief, the April Floral Management Magazine and Dateline.
--Shelley Estersohn
sestersohn@safnow.org
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NEWSMAKERS
National Magazine Gives Vase Advice
Looking to increase your by-the-stem sales for your eager DIY customers? The February issue of Real Simple magazine does its part to help.
In the article "The Best Bouquets: Want to assemble a bouquet like a pro? Pick the perfect blooms for your vessel," writer Sarah Stebbins, with the help of several designers, gives advice on the best flowers and branches for six different vessels.
Some of the tips included in the article (which is worth laminating and posting in your shop for customers, if you can still find the issue on newsstands):
• Tulips or other species with long, supple stems, like ranunculus, go well in urn-shaped vases because it gives them room to grow. A widemouthed urn gives (tulips) space to "move and do their thing," says Ian Prosser, AAF, AIFD, PFCI, owner of Botanica International Design Studio, Tampa, Fla.
• The best fits for a cylindrical vase are hydrangeas and other flowering branches, peonies, sunflowers, or any bloom with a large head and bulky stem. This combo works because the height and the narrow shape of a cylinder can "make an abundant bouquet of shrub-like flowers look more controlled," Prosser says.
• Roses fit well in a rounded vase (as do other species with rigid stems, such as daises, chrysanthemums and carnations) because they can stand tall in a container that has a generous opening.
Real Simple also advised its readers how to keep those arrangements alive longer by putting seven strategies for keeping flowers fresh to the test and posting the results on its Web site.
--Kori Kamradt
kkamradt@safnow.org
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'The King' Delivers Valentine's Day Flowers, Sales
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No, Elvis wasn't in Vegas, baby, but rather Florida, delivering Valentine's Day flowers and a love song to lucky recipients. 'The King' promotion was the brainchild of Arthur Conforti of Beneva Flowers & Gifts. |
Beneva Flowers & Gifts in Sarasota, Fla., gave customers a new way to get 'out of the hound doghouse,' by having their Valentine's Day flowers delivered by 'The King' himself, an Elvis impersonator delivering flowers and singing a valentine to the recipient.
To order an Elvis-inspired delivery, Beneva customers had to purchase at least one dozen roses and pay an additional $75 for the "Love Me Tender" deliveryman and serenade request. (The customers also got to choose the song that was sung for the recipient.) More than 20 customers went for the promotion.
"This was a huge success. Not just in sales but the attention it drew," shop owner Arthur Conforti says of the holiday gimmick.
He says the idea came to him from Elvis (the impersonator), himself. Conforti says that the tall version of Elvis dropped by his shop in January to offer his singing and acting in character services for Valentine's Day deliveries. Conforti says other shops got wind of Beneva's 'burning love' Valentine and at least two said they'd like to follow suit.
--Cassandra P. Foster
cfoster@safnow.org
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TRENDS
New SAF Sustainability Resources Web Page Will Keep SAF Members In the Know
What do we mean by "sustainability" in the floral industry? Is it the same as "certification" ... or "organic"? What's happening with the proposed national standards? How are companies acting on this information? These are just a few of the topics covered on SAF's new Sustainability Resources Web page on www.safnow.org.
"Everyone's touting their 'eco-credentials' these days. It's important to understand, and be able to talk about, sustainable agriculture — because you can expect to get more questions about where and how flowers are grown and where this industry fits on the 'green scale,'" says SAF's CEO Peter Moran. SAF has collected all of its information, news and other resources related to sustainability and the environment in one place so that members can find the answers they need quickly and easily.
The new Web page includes answers to frequently-asked questions, links to organizations involved in the standards-development process and certification programs, the latest "green" news stories from E-brief and other SAF publications, and up-to-date information on the progress of the proposed ANSI National Standard for Sustainable Agriculture. The contents will be updated regularly as new information and news is available. Visit it at http://www.safnow.org/sustainability.
--Shelley Estersohn
sestersohn@safnow.org
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Documentary Highlights Sustainability in Ecuador
A 10-minute PBS documentary distributed online by PBS Frontline World, says that the U.S. market is ready to pay more for flowers in order to push for more fair trade practices.
Filmmaker Courtney Hamilton traveled to Ecuador, which is known for its tall, straight roses, to speak to industry officials about where the rose industry once was and where it is going.
"The story of roses hasn't always been a pretty one," Hamilton explains. "A nasty reputation for labor and environmental abuses has plagued the industry from the very start."
Hamilton goes on to say that environment is changing because of farms such as Nevado Ecuador of Latacunga, Ecuador, which is making efforts to improve conditions for workers and implement more environmentally friendly practices, Hamilton says.
Video footage and interviews with farm owners and employees highlight practices such as paying a living wage, strictly regulating pesticide use, recycling water and plant parts and contracting with a slaughterhouse to use animal waste for fertilizer.
Hamilton also talks to Michael Conroy, board chairman of TransFair USA, a fair trade certifying agency for the U.S., who says fair trade certified flowers could have as much impact on the flower industry as fair trade coffee did a few years back.
"Fair trade certification changes the nature of conditions faced by workers on flower farms, "Conroy says.
Jennifer Sparks, vice president of marketing for the Society of American Florists, says the documentary is an example of a recent "shift" in the media's coverage of the industry's growing practices. "We have seen a shift in news coverage of late, with the majority of stories focusing on the positive advantages of certification programs and sustainable practices in the floral industry," Sparks says, "rather than making negative claims about the treatment of workers and the environment. This story is a great example of that shift."
--Kori Kamradt
kkamradt@safnow.org
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BELIEVE IT OR NOT
Fighting Crime With Flowers
Everyone wants flowers for Valentine's Day — even criminals. That's the thinking behind the Anne Arundel County Sheriff Ron Bateman's hoax on Feb. 14, when he and other officers posed as flower deliverymen and served warrants, not flowers, to crime suspects; 12 suspects were successfully duped and arrested.
The Baltimore Sun reported that the police showed up on the doorsteps of individuals wanted on outstanding warrants and presented "empty boxes of roses — for the ladies — and hastily assembled gift baskets — for the fellas — in a white van emblazoned with the logo 'Flowers by Ron.'"
So, how exactly did police catch the wanted individuals? The deliveryman idea, originally thought up by a female civilian employee at the police department, had officers call the suspects on a secure phone line and tell them that they were to receive a Valentine's Day bouquet or basket. Once the suspects took the bait, the officers then asked them what time they would be home to accept the special deliveries.
And the police did go to great lengths to pull this caper off. In addition to creating a faux box of roses, complete with a big red bow anchoring the package and an equally as fake gift basket featuring "an empty bottle of wine, a cigar box, a plush football and candy hearts," the police plastered a magnet logo with the shop's name "Flowers by Ron" onto the delivery van — and they even went so far as to come up with a clever shop slogan: "An arresting bouquet." Also included with the special deliveries for the male and female suspects were Valentine's Day balloons and one crime-fighting Batman balloon.
--Cassandra P. Foster
cfoster@safnow.org
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Deliveryman Saves the Day
While out just doing his job on Valentine's Day, one deliveryman unexpectedly gained a new title, hero.
As Douglas Haines, a former fire captain and deliveryman at Ann's Flower Shop in Auburn, Maine, made his rounds on Feb. 14, he came upon one house where no one was home, spotted smoke, and called 911.
According to reports by the Sun Journal, firefighters arrived soon after, were able to save an unconscious dog and contain the fire to only two rooms in the house.
Officials reported that because there was no one home and the house was at the end of a dead end street, if it wasn't for Haines calling the fire in, the fire might have been missed.
The dog, Kasey, a 10-year-old lab mix is recovering at a local Veterinary Hospital after receiving oxygen on-scene, and as for the flowers that were supposed to be delivered that morning, Haines took them back to the shop. "I figured she had bigger things to worry about than flowers and balloons," Haines told the paper.
--Kori Kamradt
kkamradt@safnow.org
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MARK YOUR CALENDAR
On the Horizon
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REGULAR FEATURES
Product Spotlight: The "Hip Giver's Guide"
 Help your consumer be a "hip giver" with this customizable guide. The "Hip Giver's Guide" is a month-by-month guide to floral gift giving that offers holiday tips and advice, flowers and plants that are in style, floral research and more! The invaluable guide is sold in packs of 5 for only $4.95 for members. Members can also download a PDF Hip Giver's Guide by clicking here.
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Discussion Forums
A great response has been posted on the discussion forum regarding teaching continuing education classes. A member had been asked to teach a class in floral design and came to the discussion board looking for some help crafting lesson plans. A fellow member offered up a wonderfully detailed guide on how to get the ball rolling — from setting up a time to meet with the director of continuing education to suggestions for basic lab fees. Read all about it by clicking here.
A member had posted a request for sources selling cello wrap imprinted with his company logo. Apparently, the company he had been relying on suddenly introduced a "$300 plate charge to make any change to it." A helpful response was recently added to the board directing him to Nashville Wraps. Want to know why Nashville Wraps got a nod?
Or go ahead and start your own discussion.
--Morgan Schimminger
mschimminger@safnoworg
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The Boss Stays Put
The "Not Applicable" category in last week's e-poll garnered a lot of responses. Almost 67 percent of respondents actually are the boss and therefore would not fire themselves. If firing family were an option, close to 12 percent would hand out a pink slip. Only a little under 17 percent flatly said "no," while surprisingly, close to 5 percent would fire the boss "in a heartbeat."
--Morgan Schimminger
mschimminger@safnow.org
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Easter Sales: Five-Year Trends
What product categories are growing at Easter? More than a third (37 percent) of florists reported sales of fresh flowers were on the rise, the most optimistic assessment of the three product segments. Less than a quarter (23 percent) of florists reported sales of potted houseplants were increasing, which was 9 percent points more than for bedding and garden plants (although the latter had a sizable proportion of 'don't know' responses). The most pessimistic observation was for potted plants, where 37 percent of florists felt the trend was sliding.
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Easter Sales: Five-Year Trends |
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Source: SAF Post-Holiday Zoomerang Survey of retail florists with e-mail addresses. Based on 217 responses (response rate = 6.4 percent). |
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