Flowerfête’s Faversham site, where the company was established a decade ago, is something of a shrine to the firm’s achievements over the last 10 years. The on-site meeting room houses an impressive number of certificates and awards, not only last year’s coveted Re:fresh accolade but also a certificate of recognition of the Entrepreneur of the Year 2005 awards and plenty of regional accolades. Flowerfête has appeared in the Virgin Atlantic Fast-Track 100 Companies listings three times (as published in The Sunday Times) and has starred in a list of Europe’s top 500 companies.
The company evolved out of its Faversham base, where it set up shop in 1997. “Back then we had two office staff and six drivers,” says managing director Colin Hills. “Now, Flowerfête operates 13 distribution depots across the country and more than 120 vehicles, employing some 160 staff in the UK and Europe. We pack around six million bouquets annually.”
Flowerfête operates its own production and packing facility, Bunches International BV, at Reinsberg in Holland. The company sources products from all over the world, including Africa, Turkey, Israel and Colombia. “We are working with key supply partners all over the globe, and are really breaking new ground in this respect,” says Hills.
The unique aspect of Flowerfête is its infrastructure, he continues. “We are a logistical company, not just a flower business. Our cut to customer turnaround time is very swift, taking just 24 hours from packing in Holland to customer.” Flowerfête produces more than 20,000 invoices a week and performs more than 3,000 product deliveries daily, up and down the UK. “It has taken 10 years to develop the infrastructure to where it is today, and we are really proud of the unique position we are now in,” says Hills.
Out of Flowerfête’s top 10 customers, eight are major blue-chip companies, according to Hills. The firm’s operations are divided into three areas: firstly, forecourt services; secondly, off-road retailing at motorway service areas, hospitals and airports; and thirdly, the convenience sector, covering high-street convenience store retailers and major retail chains. The latter offers Flowerfête great potential to grow over the next 12 months, Hills believes.
“We offer our customers a complete marketing solution, training them how to lay out the merchandise in-store and supporting them right through to the final sale,” says Hills. “We are aware that in the sectors we supply, space is limited, so visual impact is paramount. Attention to detail is vital, as is encouraging in-store staff to support and update their displays regularly.”
Looking at the horticultural industry’s pecking order, Hills explains that the forecourt sector has always traditionally been associated with the lower end of the market, but he feels Flowerfête has made significant inroads into altering this image.
“The systems we have put in place, including quality and distribution checks, have transformed the sector, and we feel this is one of the reasons why we were honoured with the Re:fresh award last year,” says Hills.
Being recognised by the industry was a real boon, he says, especially as the company is now publicising the award on its products, website and consumer-oriented marketing material, so the end consumer can see the results of its hard work.
“Flowerfête is an important consumer brand,” says Hills. “A brand has to mean something to the customer and the end consumer, and ours certainly does - Flowerfête is the largest independent flower brand in the UK, and in the last 12 months has attracted the attention of a major retailer, with whom we won a contract in July 2006 which has so far proved very successful.” This represents the first major high-street multiple that Flowerfête has supplied outside of its usual convenience remit.
Technology is another important tenet of Flowerfête’s strategy. Each of the firm’s vehicles is linked to the service centre and customers enjoy complete supply-chain visibility.
The company’s new internet-based direct-to-consumer sales business has generated massive publicity, according to Hills, with the renovated website launched in October 2006 proving a hit with consumers so far. “The online aspect of our work has been very successful to date, especially because of its same-day or next-day delivery option and value for money products,” he explains. Flowerfête has organised cross-promotional schemes with chocolate and champagne companies for its online gifting range.
“We have developed an advantage card offering a five-pound saving for our online customers, which has helped push up sales. Corporate clientele, including offices, hotels and restaurants, also form a vital part of our web business,” says Hills.
The company works with key online retailers as well, supplying them with flower lines which are then sold under their own brands.
Hills is very passionate about the future development of his business. “There is a danger that the markets in which we operate are at saturation point, but new retail areas and services are developing, and we at the forefront of this expansion. Flowers have become an additional part of the fresh produce portfolio over the last four to five years, and the retail multiples are always looking to grow their horticultural category. The ongoing development of these areas is of major importance to the horticultural business.”
The flower market enjoys a massive uplift in sales during seasonal events such as Valentine’s Day and Mother’s Day, according to Hills. “Flowers have recently found themselves up against newer, more modern gifting environments, with for example the traditional bunch of flowers for Valentine’s Day being replaced by weekends away and other presents,” he says. “However, one way of ensuring we maintain a strong presence during key calendar events is to keep at the forefront of innovation. This is where cross-promotion with drink and confectionery companies comes into its own.” Flowerfête packed 280,000 bouquets in one week for Mother’s Day 2007, according to Hills. But the flower industry is not all about special occasions anymore.
“Flowers used to be an impulse buy or a luxury item, but now they are easily accessible and form an everyday part of home furnishings, especially thanks to the recent spate of home makeover programmes aired on television. One thing that can certainly be said in favour of major retailers is that they have made previously unusual products accessible 52 weeks of the year. Consumers now know what they want and when they want it. The market will continue to grow for sure.”
One of Flowerfête’s key aims for 2007 and beyond is to increase UK spend on flowers to catch up with the rest of Europe, where expenditure per capita tends to be higher. “People are purchasing flowers for themselves a lot more, and are continually looking for more exotic products presented to them in increasingly innovative methods. We have to fulfil a range of needs - not just for the gifting industry but also for consumers who like to stand and browse products that they can mix and match,” says Hills.
The company is gearing up to roll out several new, innovative marketing methods this year and throughout 2007 will be continuing its quest for innovation and boosting its online business. “There is a concern that the forecourt sector is dwindling due to decreasing outlet numbers, so we are aiming to bump up business in our remaining key areas,” says Hills. “Clever marketing techniques and innovation are likely to move the industry forward.”
In the forecourt sector there is still headway to make in winning over female clientele, Hills explains. “The grab-and-go market remains predominantly male, but we can see in the kind of arrangements being purchased that more women are now buying into the category. Off-road retailers offer great potential, as do independent retailers, who have already expanded their fresh food offer and are looking for a flower portfolio to match.”
Flowerfête has taken steps to minimise the environmental impact of its deliveries. “Our distribution depots around the country are strategically placed in a bid to limit mileage,” says Hills. “We update our fleet of vehicles every two to three years, rendering them as environmentally friendly as possible, and 90 per cent of our packaging is now recyclable thanks to the procona system we have developed over the last 12 months.”
The decision to build a distribution hub in Holland was taken in an attempt to cut down on mileage and product handling, as the produce is packed largely at source and then distributed overnight via the Channel Tunnel to Flowerfête’s UK depots. Only the firm’s online deliveries are packed in the UK, at a facility based near Nottingham.
Flowerfête also ploughs a lot back into its staff. “Along with employee training, every year I organise a conference and awards ceremony for Flowerfête staff, to which I invite our key suppliers. This year is our 10th anniversary, so we will no doubt do something special this time,” says Hills.
“Whatever way you look at it, we are an award-winning firm,” he adds. “We have spent the last 10 years diversifying our business and now fulfil the role of a substantial horticultural and logistics business. At one stage we were the only horticultural company to make Virgin Atlantic’s Fast Track 100 list. Recognition at last year’s Re:fresh Awards was another great string to our bow.”
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