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New Head at Fair Trade Foundation
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Flowergram members dropped as Flowers Direct merges membership
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Booths see increase while others falter
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Open Skies for Kenya
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Goldfish stop customers in their tracks
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Jim Floor leaves World Flowers
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Moyses goes into administration, Blakes take on contracts
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United Online concludes purchase of Interflora and FTD
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More high street gloom
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Diss shop in the Pink ... and so is charity
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Colombia adds consumer PR to activities
Read More.
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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.
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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.
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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.”
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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.
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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
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Jim Floor leaves World Flowers
Jim Floor, MD of World Flowers, packers and suppliers to major names including Sainsbury, Tesco, Interflora and John Lewis, has left the company and is now on gardening leave. His successor, John Welch, who comes from outside the industry, is due to start in September.
Although no official release has been made by the company, a letter has been sent to both suppliers and customers.
Speaking exclusively to fandwb.com Mr Floor told us: “Obviously I am sad and disappointed with what has happened and I would rather have not ended my 13 years with the company in this way.
Mr Floor continued: “Despite an increasingly challenging market, World Flowers is a phenomenally successful division of the Osarian portfolio. I am proud to have been part of it and wish my colleagues and clients success in the future.”
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Moyses goes into liquidation, Blake Flowers pick up pieces
Moyses Stevens, the historic London based florist, has gone into administration after more than 130 years of trading. Harris Lipman has been appointed as joint liquidators of the company, which had already announced the closures of three of its branches last month.
However while branches have been closed and some staff have lost their jobs, James Blake, founder of Blakes Flowers has bought the contracts and events side of the business as well as the concession within the Peter Jones store and expects to run them under the Moyses name.
At the moment precise details of the deal, or the impact it will have on creditors was not known at the time of going to press.
However fandwb.com spoke with John Kennedy of Moyses who told us: “Obviously we would have preferred not have gone this route but in the circumstances, believe we have found the best solution. Our original plans for expansion were based on shop roll outs which obviously was not appropriate in the current climate and therefore the investors realised this was the only sensible decision.”
Mr Kennedy continued: “We are delighted that James has bought the events and contracts side which will hopefully be good news for creditors although it is too early to tell at this stage what the final position will be. However it has enabled us to secure on-going employment opportunities for the majority of our florists as the bulk of the jobs lost were in the business development departments rather than the floristry facing side.
F&WB are meeting with both Mr Blake and Mr Kennedy and will run updates on fandwb.com as and when they become available.
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FTD and Interflora sale to United completes
United Online, a leading provider of consumer products and services over the Internet, confirmed on 26th August that it had completed it’s acquisition of FTD Group and it’s subsidiaries including Interflora. The deal, worth in excess of $750million based on both cash and shares, means former FTD stockholders own approximately 15% of United Online.
The acquisition of FTD is expected to provide several strategic benefits to United Online, including a significant increase in scale, diversification of the company's revenue streams and profitability, and expanded marketing opportunities and efficiencies.
"I am delighted to welcome FTD's management team and talented employee base to the United Online family," commented Mark R. Goldston, United Online Chairman, President and Chief Executive Officer. "FTD's world-class brands, customer demographics and significant Internet presence are a great fit with our existing consumer brands. We plan to leverage United Online's proven marketing expertise in attracting consumers to the highly popular ftdi.com web site and the 1-800-SENDFTD order line, and to the thousands of FTD-affiliated florists who are the life-blood of this great, nearly 100-year old company."
Goldston continued, "FTD's Interflora business unit, which is a premier floral brand in the United Kingdom and Ireland, represents a tremendous opportunity as well and we are looking forward to the international opportunities afforded by the www.interflora.co.uk web site and the large base of exclusive Interflora-affiliated florists within those markets.
The FTD and Interflora brands include the Mercury Man logo that is displayed in approximately 45,000 retail floral shops worldwide, and which is one of the most highly displayed retail logos in the world. The company anticipates their marketing initiatives for FTD will include cross-selling FTD products to more than 50 million existing domestic consumer accounts across the Classmates, MyPoints, NetZero, and Juno businesses, and utilizing the MyPoints loyalty rewards platform as a mechanism to reward the millions of FTD customers for purchasing products from FTD.
For the full press release and more information about the new owners of Interflora log on to www.unitedonline.com.
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Sales down four months out of five
According to the UK Retail Sales monitor UK retail sales values fell 0.9% on a like-for-like basis, compared with July 2007, when they had risen only 1.2%, hit by very wet weather. Sales have now been lower than a year ago in four of the past five months, the worst since summer 2005.
Changeable weather hit sales in July. A few sunny days together with extended clearance events helped some but underlying trade remained tough, with widespread discounting.
Food and drink was the only sector to show significant growth but that was against a weak July 2007. Clothing and footwear fell further below the year-earlier level. Furniture and homewares remained well down on a year ago, despite continued discounts and promotions.
Consumer confidence has weakened still further to new record lows. With increasing demands on household budgets, shoppers are very price-conscious and reluctant to spend on big-ticket items. Even heavy discounting often failed to tempt customers to buy.
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Diss shop in the pink
Back in May Amity’s Florist in Diss, Norfolk hit the headlines of their local paper when they painted the exterior of their shop vibrant … and we mean vibrant! … pink.
Done as a result of receiving a letter from the council, requesting all shops to clean up their acts, the new colour caused a furore with locals vehemently opposing the colour … some to the point of swearing at owners Christine and Dennis Lathrope.
Trouble was South Norfolk Council were also un-impressed as the colour, they said, did not conform to the ambiance of the area or the conservation rules that applied and as such instructed the Lathrope’s to change it.
But rather than instantly give in, Amity’s used the opportunity to not only gain valuable PR but raise money for Cancer Research UK as well. Because they put two buckets outside the shop … one marked 'Keep it Pink', the other marked ‘Change It’ and as a result raised £700!
As for the colour? Well it’s actually stayed pink … but a far more subtle and elegant pink and cream combo. But given the amount of money raised for charity and the publicity the shop has received we reckon it wasn’t a bad return for the cost of paint and a bit of elbow grease.
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Colombian Promotion gets green light
Asocolflores, the association from Colombian flower growers has appointed Wordhouse to carry out a programme of consumer PR with effect from 1st September. The contract which initially runs for the next four month’s, is designed to encourage journalists to see the good side of Colombia and help negate the negative view of the Colombian flower industry.
Commenting on the appointment Caroline Marshall – Foster, who will head up the project, told fandwb.com: “Having worked at trade level with Colombia for the last 10 years and travelled frequently to see the farms and the people, I and my team have a special affection for Colombia and are both flattered and excited to have this new project to get our teeth into.”
Marshall – Foster continued: “Colombia is special. Not just because they produce some fabulous flowers but because they are doing an incredible job in terms of worker and environmental issues that too many consumer journalists choose to ignore. The negative press is not only undeserved but actually damages the whole flower industry. If what we plan to do can help Colombia and the people who sell their flowers be seen in a more positive light then we will have achieved our goals.”
The first releases will be issued in the middle of September together with a dedicated Colombian flowers website for UK journalist and consumers. Industry links will be included as well as dedicated PR kits for florists.
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