Florist & Wholesale Buyer - News and Events

Business and brand consultant David Clayton Smith has been appointed the new Chairman of The Fairtrade Foundation. A member of the board for 10 months, Clayton Smith is a Director and Co-founder of the business consultancy Andrum Ltd, has an impressive range of retail and online sector experience and been responsible for brand management, sales, marketing, and buying and supply functions in major blue-chip consumer businesses.

Harriet Lamb, Executive Director of the Fairtrade Foundation, said: “David brings a fresh creative perspective to developing business growth in the Fairtrade sector. His wealth of experience in the consumer-facing retail world, combined with his commitment to development issues, means he is uniquely well placed to help the Foundation scale up to deliver greater benefits for producers.”

Lamb also paid tribute to Mike Gidney, Director of Policy at Traidcraft Exchange, who has served as Chair on the Fairtrade Foundation Board for three years and before that was a board member for three years. Six years is the maximum period it is possible to serve on the foundation’s board.

“Mike has constantly challenged the senior management team and staff of the Fairtrade Foundation to deliver his vision of a Fairtrade lifestyle for the public,” says Lamb. “We are in particular very grateful for all his direction and steer in developing the foundation’s ambitious five-year strategy launched earlier this year, Tipping the Balance.”

Clayton Smith will now help the organisation deliver the goals of the strategy that, over the next five years, seeks to tip the balance of international trade in favour of disadvantaged producers.

Specific targets include achieving a UK market share of at least 50 per cent in the top three product categories, and more than 10 per cent in at least six other food and drink categories. The number of farmers and workers in the developing world benefiting from sales of Fairtrade products in the UK will have more than doubled.

Item 5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Officers. On June 9, 2008, Stephen Richards, an Executive Vice President of FTD Group, Inc. (the “Company”) and Chief Executive Officer of Interflora Holdings Limited (“Interflora”), a wholly-owned subsidiary of the Company, submitted his resignation from his respective positions at the Company and Interflora to be effective as of the date of the consummation of the previously disclosed proposed merger with United Online, Inc. (the “Merger”). Ryhs Hughes, an Executive Vice President of the Company and President of Interflora, will assume Mr. Richards’ operational responsibilities following the consummation of the Merger.

In an e-mail sent to both staff and members Mr Richards wrote: “I wanted to end any speculation and formally tell you that I’ve decided to leave Interflora once the merger between FTD and United Online is complete – it is anticipated to close during the third quarter of 2008. Rhys Hughes will take on my operational responsibilities at that time.”

Mr Richards continued: “In the 5 years since I joined the business we have seen a radical transformation of the company and I’m proud of all we have achieved together. I’d like to thank you for the part you have played in creating the dominant and most successful relay business in our territories. Those who know me well will not be surprised I think that it’s now time for me to move on to new challenges.”

In conclusion he says: “I know once I’m gone the business will be in good hands, Rhys and his team are proven and experienced, United Online bring new energy and ideas. In the meanwhile I will continue to work for the commercial goals of Interflora and towards the successful completion of the transaction.”

Editors Note: Mr Richards, (49) who has worked for a number of high profile retailers and brand names in the past, joined Interflora in September 2003 and was responsible for introducing and seeing through the de-mutualisation of Interflora with the sale to 3i for some £23milion. Some 15 months later Interflora was sold to FTD for circa £65 million, with Mr Richards taking on the role of Executive Vice President in addition to his CEO role with Interflora Holdings.

While John Lewis and Marks & Spencer may be reporting a downward trend, Booths, the North-west supermarket group have posted a year on year profit increase of 30 per, up from £6.9 million in the previous 12 months.

According to Edwin Booth, the fifth-generation family member to run the UK’s remaining independent supermarket group, Booths ethical and environmental policies have helped generate a four per cent rise in sales to £243m while an investment of £2m in a more efficient warehouse and distribution network, and the completion of an environmental audit have added both increased efficiencies and supply transparency.

However Edwin also believes that the Preston based company’s growth has been helped by their decision to focus on both locally sourced foods with an emphasis on the ‘human touch’. “It’s one thing all our competitors find it hard to replicate,” he said. “When you go into a Booths store, you feel you belong and there is a sense of community.”

The deal which allows direct flights between the two countries for one year is expected to promote Kenya’s export trade particularly flowers.

Ambassador Michael Ranneberger said that flower growers in Kenya should take advantage of the deal to export more flowers to the US because there is a high demand for them.

"We think that in the next 12 months or so, the U.S. could be the largest source country for tourists to Kenya if we can get direct flights underway," the Ambassador said, adding that flights could start after negotiations on a "Safe Skies" agreement are completed. A "Safe Skies" deal is designed to ensure airlines flying to U.S. airports and foreign airports to which U.S. carriers fly meet U.S. security standards.

Speaking about the new deal an official at the Fresh Produce Exporters Association of Kenya said they expected the U.S. market to account for between 2 and 5 percent of exports at the start of the direct flights and rise gradually.

Records from the Kenya Tourist Board indicate that 101,879 U.S. tourists visited Kenya in 2007, up from 86,528 the previous year. However the tourism sector was greatly jolted by violence following the disputed presidential elections last December.

Kenyan flower exports to the United States are negligible but it is the largest exporter of cut flowers to Europe, earning the country 70.3 billion Kenya shillings (1.09 billion USD) last year.

Based in south of England, Vitacress is one of the leading growers and marketers of salads in the UK and Portugal, being the largest Europe’s supplier of watercress, baby leaf spinach and rocket, farming about 1.200 hectares of land in England Portugal and Spain. The company has a strong presence in the bagged salads market, with special emphasis in the baby leaf segment, where its products are well known for their innovation and excellence.

Vitacress in 2007 had a turnover of £81m (€102m) and an EBITDA of £6.4m (€8m), employing around 1,000 employees.

The current CEO of the company, Nick Stenning, will continue to lead a strong management team, focusing on the consolidation and expansion of this business. This signifies a new phase in the development of Vitacress, allowing for an increase in the scale of its operations, particularly in the Iberian market.

Thirty nine per cent of retail respondents to its latest Distributive Trades Survey reported that in the first half of June sales were lower than a year ago, while 30% said sales had increased.

The resulting balance of -9% disappointed expectations of modest growth in sales volumes, but was an improvement on last month's balance of -14% and April’s very weak figure (-26). A slightly slower decline is predicted next month (-7%). The 9% survey balance equates to annual volume growth of just over 2% on the ONS measure.

The three-month moving average of sales volumes, which levels out monthly volatility, continued its downward trend to a balance of -16% this month, which is the weakest since December 2005 (-18%).

Sales for the time of year were also seen as poor by a net 21% of firms - a trend which is expected to continue easing next month, when a balance of 17% expect poor sales.

Weak demand prompted retailers to cut the volume of orders placed with suppliers in June (a balance of -12%), and they expect to do so again in July at a similar rate. Stock levels were seen as more than adequate to meet demand by a net 22% of businesses.

In individual sectors, clothing retailers reported a record low in their year-on-year sales growth, and booksellers & stationers also fared poorly. And retailers tied to the housing market, such as durable household goods, furniture & carpets, hardware, china & DIY continued to report falling annual sales.

However, grocers, including supermarkets, had another month of strong year-on-year sales growth, with a balance of +67% reporting an increase in sales, which was the highest since December 2005 (+70%). Footwear and leather shops were the only other sector to report sales growth.

Andy Clarke, the new Chairman of the CBI's Distributive Trades Panel, and Retail Director of Asda, said: "High fuel prices and concerns about the economy have blunted consumer appetites, and those retailers linked to the housing market are continuing to endure difficult conditions. Grocers have had another strong month, as people spend more in supermarkets, focusing on the essentials and also upgrading to higher value foods instead of having a night out."


	Florist Event organisers suspend trading Read More. Moyses Stevens close branches Read More. New Head at Fair Trade Foundation Read More. Flowergram members dropped as Flowers Direct merges membership Read More. Interflora fails Advertising check Read More. Steve Richards to leave Interflora Read More. Booths see increase while others falter Read More. Open Skies for Kenya Read More. New owners for Vitacress Read More. Third month of gloom in High Street Read More. Dialogue re-opens with Interflora Read More. Another supermarket link for Teleflorist Read More. Goldfish stop customers in their tracks Read More.
	Basing suspends trading in order to assess situation Basing Ltd, organiser of Florist Event, has suspended trading as of Friday 25th July in order that a thorough viability study can be undertaken of the company. Creditors have been contacted and advised of the situation. Commenting on the move, Marcus Foster, Managing Director and sole owner of Basing Ltd, said: “Despite the fact that I have personally invested cash into the business and given we face an uncertain economic climate with a predicted shortfall in revenue, the January ‘09 show is not viable. Therefore I have no alternative but to take this action as it would be wrong to continue trading.” Advisors will now be instructed to assess the potential of the company in order that a forward strategy can be considered. [top]
	Moyses Stevens close branches Moyses Stevens, one of the most famous of the London flower shops and creators of some fabulous floristry, have closed some of their unprofitable branches this weekend although their Peter Jones operation, Motcomb Street shop and website remain live. Commenting on the decision John Kennedy, MD of Moyses told fandwb.com on Monday 28th July: "We have taken a commercial decision to close our unprofitable branches and that includes the Marylebone Street store. However it is business as usual in our other operations and all contracts went out as normal this morning." Mr Kennedy continued: "The Moyses name is one of the most successful and well respected in English floristry. We are now talking with our investors and shareholders to see how we can re-structure and develop the business based on our strong reputation for innovative and progressive ideas." [top]
	Marketing man heads up Fair Trade Business and brand consultant David Clayton Smith has been appointed the new Chairman of The Fairtrade Foundation. A member of the board for 10 months, Clayton Smith is a Director and Co-founder of the business consultancy Andrum Ltd, has an impressive range of retail and online sector experience and been responsible for brand management, sales, marketing, and buying and supply functions in major blue-chip consumer businesses. Harriet Lamb, Executive Director of the Fairtrade Foundation, said: “David brings a fresh creative perspective to developing business growth in the Fairtrade sector. His wealth of experience in the consumer-facing retail world, combined with his commitment to development issues, means he is uniquely well placed to help the Foundation scale up to deliver greater benefits for producers.” Lamb also paid tribute to Mike Gidney, Director of Policy at Traidcraft Exchange, who has served as Chair on the Fairtrade Foundation Board for three years and before that was a board member for three years. Six years is the maximum period it is possible to serve on the foundation’s board. “Mike has constantly challenged the senior management team and staff of the Fairtrade Foundation to deliver his vision of a Fairtrade lifestyle for the public,” says Lamb. “We are in particular very grateful for all his direction and steer in developing the foundation’s ambitious five-year strategy launched earlier this year, Tipping the Balance.” Clayton Smith will now help the organisation deliver the goals of the strategy that, over the next five years, seeks to tip the balance of international trade in favour of disadvantaged producers. Specific targets include achieving a UK market share of at least 50 per cent in the top three product categories, and more than 10 per cent in at least six other food and drink categories. The number of farmers and workers in the developing world benefiting from sales of Fairtrade products in the UK will have more than doubled. [top]
	flowersdirect Strengthens its Relay Network Lancashire based flowersdirect, a leading floral and gifting company, has announced plans to create a larger, stronger Relay Network with greater marketing and fulfilment strength and much improved coverage. Since the acquisition of the Flowergram business in May 2007, Flowergram members have operated as a separate Relay Network to that of flowersdirect. After the multi-million pound investment by Manchester based Zeus Private Equity in October 2007, the company has been reviewing its strategy, especially in respect of how it could generate more orders for the Florist Member Network. Operating one enlarged Relay Network would be a key driver of greater sales volumes and for this reason it is the company’s plan to press ahead with the integration of the Flowergram Relay Network into the already highly successful flowersdirect Relay Network. The change will bring many benefits for members and customers alike. Combining the two Relay Networks will give improved coverage in the UK & Ireland, ensuring more orders are delivered by dedicated, experienced local member florists. By simply focussing on one Relay Network the company’s improved efficiencies will greatly assist in providing an even better service. All members of both Relay Networks are being contacted and will be fully supported throughout the transitional period. The transferring of Flowergram Members to the flowersdirect Network will take place over the coming months in readiness for Christmas and the main floral events. Commenting on the announcement, Ian Rawlins of flowersdirect said: “This change gives flowersdirect the perfect opportunity to create an extended Network of high quality florists. With more marketing and fulfilment strength we will be able to take our members on an exciting journey towards sales growth and improved profitability. Whilst the market remains highly fragmented, flowersdirect’s e-commerce expertise will greatly assist in ensuring the company is well positioned to take advantage of forecasted online growth. The size and breadth of our newly enlarged Relay Network will allow flowersdirect to provide a high quality service to both its private and corporate client base.” Gary Tipper, Managing Partner of ZPE, added: “The merging of our Relay Networks marks the latest stage in the long term development plan for the company. flowersdirect’s rapid growth has been driven by an innovative approach to online marketing, sustained investment in technology and communication systems, and the quality of it’s Member florists. I am confident that by focussing on these core strengths, the growth will continue in the months ahead.” Eds Note: As we upload this weeks news we are receiving calls from Flowergram members who are aggrieved that their memberships have been terminated as a result of flowersdirect changes. We will contact the company to find out more and report when we are able. [top]
	Interflora found guilty of breaching ASA ‘truth’ rules The Advertising Standards Authority has upheld a complaint from a member of the public concerning an offer of free delivery by Interflora for Mother's Day orders. The complainant believed the ad was misleading because, when she ordered two bunches of flowers for Mother's Day, she found that there was a £5 delivery charge to pay on each. The full ruling, dated 11 June is published on the ASA website and can be read in full if you click here [top]
	Steve Richards to leave Interflora On 9^th June an 8-K Form was placed on the Sec filings section of ftdi.com which confirmed Steve Richards, who led Interflora through both Incorporation and the sale to FTD America, is to step down when the third sale of the company during his tenure completes. *Item 5.02* Departure of Directors or Principal Officers; Election of Directors; Appointment of Officers. On June 9, 2008, Stephen Richards, an Executive Vice President of FTD Group, Inc. (the “Company”) and Chief Executive Officer of Interflora Holdings Limited (“Interflora”), a wholly-owned subsidiary of the Company, submitted his resignation from his respective positions at the Company and Interflora to be effective as of the date of the consummation of the previously disclosed proposed merger with United Online, Inc. (the “Merger”). Ryhs Hughes, an Executive Vice President of the Company and President of Interflora, will assume Mr. Richards’ operational responsibilities following the consummation of the Merger. In an e-mail sent to both staff and members Mr Richards wrote: “I wanted to end any speculation and formally tell you that I’ve decided to leave Interflora once the merger between FTD and United Online is complete – it is anticipated to close during the third quarter of 2008. Rhys Hughes will take on my operational responsibilities at that time.” Mr Richards continued: “In the 5 years since I joined the business we have seen a radical transformation of the company and I’m proud of all we have achieved together. I’d like to thank you for the part you have played in creating the dominant and most successful relay business in our territories. Those who know me well will not be surprised I think that it’s now time for me to move on to new challenges.” In conclusion he says: “I know once I’m gone the business will be in good hands, Rhys and his team are proven and experienced, United Online bring new energy and ideas. In the meanwhile I will continue to work for the commercial goals of Interflora and towards the successful completion of the transaction.” Editors Note: Mr Richards, (49) who has worked for a number of high profile retailers and brand names in the past, joined Interflora in September 2003 and was responsible for introducing and seeing through the de-mutualisation of Interflora with the sale to 3i for some £23milion. Some 15 months later Interflora was sold to FTD for circa £65 million, with Mr Richards taking on the role of Executive Vice President in addition to his CEO role with Interflora Holdings. [top]
	Booths on the rise While John Lewis and Marks & Spencer may be reporting a downward trend, Booths, the North-west supermarket group have posted a year on year profit increase of 30 per, up from £6.9 million in the previous 12 months. According to Edwin Booth, the fifth-generation family member to run the UK’s remaining independent supermarket group, Booths ethical and environmental policies have helped generate a four per cent rise in sales to £243m while an investment of £2m in a more efficient warehouse and distribution network, and the completion of an environmental audit have added both increased efficiencies and supply transparency. However Edwin also believes that the Preston based company’s growth has been helped by their decision to focus on both locally sourced foods with an emphasis on the ‘human touch’. “It’s one thing all our competitors find it hard to replicate,” he said. “When you go into a Booths store, you feel you belong and there is a sense of community.” [top]
	Open skies for Kenya The signing of the Open Skies agreement between Kenya and the US will see a significant rise in tourism and Kenyan exports to the United States, says the US Ambassador to Kenya. The deal which allows direct flights between the two countries for one year is expected to promote Kenya’s export trade particularly flowers. Ambassador Michael Ranneberger said that flower growers in Kenya should take advantage of the deal to export more flowers to the US because there is a high demand for them. "We think that in the next 12 months or so, the U.S. could be the largest source country for tourists to Kenya if we can get direct flights underway," the Ambassador said, adding that flights could start after negotiations on a "Safe Skies" agreement are completed. A "Safe Skies" deal is designed to ensure airlines flying to U.S. airports and foreign airports to which U.S. carriers fly meet U.S. security standards. Speaking about the new deal an official at the Fresh Produce Exporters Association of Kenya said they expected the U.S. market to account for between 2 and 5 percent of exports at the start of the direct flights and rise gradually. Records from the Kenya Tourist Board indicate that 101,879 U.S. tourists visited Kenya in 2007, up from 86,528 the previous year. However the tourism sector was greatly jolted by violence following the disputed presidential elections last December. Kenyan flower exports to the United States are negligible but it is the largest exporter of cut flowers to Europe, earning the country 70.3 billion Kenya shillings (1.09 billion USD) last year. [top]
	Vitacress acquired by RAR Group At the end of June, RAR Group, a Portuguese private company, agreed to acquire 100% of the capital of Vitacress, best known for its salad business but with a wholesale network as well, including two flower operations, one in Birmingham, the other at Western International. Based in south of England, Vitacress is one of the leading growers and marketers of salads in the UK and Portugal, being the largest Europe’s supplier of watercress, baby leaf spinach and rocket, farming about 1.200 hectares of land in England Portugal and Spain. The company has a strong presence in the bagged salads market, with special emphasis in the baby leaf segment, where its products are well known for their innovation and excellence. Vitacress in 2007 had a turnover of £81m (€102m) and an EBITDA of £6.4m (€8m), employing around 1,000 employees. The current CEO of the company, Nick Stenning, will continue to lead a strong management team, focusing on the consolidation and expansion of this business. This signifies a new phase in the development of Vitacress, allowing for an increase in the scale of its operations, particularly in the Iberian market. [top]
	CBI report 3rd month of disappointing high street sales June was another difficult month for the high street as pressure on household budgets continued, with retailers also fearing that beleaguered shoppers will not be tempted by the July sales. Thirty nine per cent of retail respondents to its latest Distributive Trades Survey reported that in the first half of June sales were lower than a year ago, while 30% said sales had increased. The resulting balance of -9% disappointed expectations of modest growth in sales volumes, but was an improvement on last month's balance of -14% and April’s very weak figure (-26). A slightly slower decline is predicted next month (-7%). The 9% survey balance equates to annual volume growth of just over 2% on the ONS measure. The three-month moving average of sales volumes, which levels out monthly volatility, continued its downward trend to a balance of -16% this month, which is the weakest since December 2005 (-18%). Sales for the time of year were also seen as poor by a net 21% of firms - a trend which is expected to continue easing next month, when a balance of 17% expect poor sales. Weak demand prompted retailers to cut the volume of orders placed with suppliers in June (a balance of -12%), and they expect to do so again in July at a similar rate. Stock levels were seen as more than adequate to meet demand by a net 22% of businesses. In individual sectors, clothing retailers reported a record low in their year-on-year sales growth, and booksellers & stationers also fared poorly. And retailers tied to the housing market, such as durable household goods, furniture & carpets, hardware, china & DIY continued to report falling annual sales. However, grocers, including supermarkets, had another month of strong year-on-year sales growth, with a balance of +67% reporting an increase in sales, which was the highest since December 2005 (+70%). Footwear and leather shops were the only other sector to report sales growth. Andy Clarke, the new Chairman of the CBI's Distributive Trades Panel, and Retail Director of Asda, said: "High fuel prices and concerns about the economy have blunted consumer appetites, and those retailers linked to the housing market are continuing to endure difficult conditions. Grocers have had another strong month, as people spend more in supermarkets, focusing on the essentials and also upgrading to higher value foods instead of having a night out." [top]
	New owners agree to interview with F&WB While requests for an interview with FTD were ignored, United Online, the company scheduled to take over FTD and Interflora in September, were happy to answer questions regarding the aquisition when approached by Caroline Marshall - Foster, MD of Wordhouse and publishers of Florist & Wholesale Buyer. Handled by United's Head of PR, Scott Matulis, Caroline asked CEO Mark R Goldston a number of questions she had received from florists around the UK and published his replies in full in this month's edition of F&WB. Commenting on the interview Caroline said: "Given there are concerns it seemed appropriate to give FTD the opportunity to explain the rational and introduce United to the UK industry. While there was a little hiccough in the middle, we got over it and I for one, am delighted that we have a dialogue going again between our organisations. "At the end of the day FTD and Interflora are far too important to the whole industry to ignore and that's why, over the last two years we have tried very hard to make sure we cover all angles. This willingness on the part of United to talk with us is both appreciated and warmly welcomed and I hope it is the start of a more consistent information flow in the future so that we once again work more closely with Interflora." The interview appears on page 20 of the July/August issue. If you want a PDF version sent to you please e-mail marion@thewordhouse.co.uk [top]
	Teleflorist members to get orders from Sainsbury's Just a couple of weeks after it announced a link with World Flowers to supply a same day facility for Tesco customers, (see story below) Teleflorist is now working with the company again ... this time supplying the same day facility for Sainsbury's who dropped their on line service on June 6th. The deal, which operates in the same way as the Tesco site referrals, transfers Sainsbury's customers to the World Flowers on-line ordering site which gives customers the choice of flowers by post, a sameday service through their 'network of florists' and a courier flower option under the Jane Packer brand name. Commenting on the deal Jim Floor, MD of World Flowers told us: “We are absolutely delighted that Sainsbury are referring their orders to www.postalbouquets.com (which includes Sameday.com). This is a real vote of confidence on the quality and service we are providing to our customers, and allows us to streamline our business.” Teleflorist did not provide a formal statement but a spokesperson said; "This is their (Worlds) deal, not Teleflorist’s, but it will mean more same day orders into our florists so we are happy with it." [top]
	Show stopping goldfish Put Nikki Edwards in charge of the window displays at the Alexandra Lyons Master Florist shop in John Lewis Oxford Street and chances are they’ll have a twist. And none more so than her latest creation. A fabulous display of glass vases, filled and topped with the most exquisite designs and featuring live goldfish. But the goldfish didn’t just cause a stir amongst passers by, they managed to attract the attention of the Chinese Embassy who promptly asked Nikki to replicate the look at one of their functions. Julia Andrews, the Master Florist co-ordinator at Wordhouse, went to see the displays for herself and came back stunned. “They were amazing. Not just because the floristry was so beautiful and everything we’d expect from one of our members but because it created such a stunning look and feel. On one side you had the structural look that appealed to the more masculine or corporate customer, on the other a really girlie and oh so pretty display of pinks and purples that seemed like a magical fairy wonderland. The fish were just the perfect finishing touch and because they were well cared for, had plenty of air and weed, there was no thought of it being wrong … just a magical way of attracting attention.” And the Goldfish now? All given a safe new home by John Lewis employees [top]


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