A personalised romance calendar and a pink heart woolly warmer water bottle are all well and good, but most loved-up consumers buy flowers and chocolates for their beloved on Valentine’s Day.
Roses are always popular at this time of year, and perhaps unsurprisingly accounted for 28 per cent of floral sales last Valentine’s Day, according to the Flowers & Plants Association (F&PA), the UK’s promotional organisation for all cut flowers and indoor plants.
More than 40 million red roses are given in the UK on Valentine’s Day, costing a total of £8m. The types of roses available vary tremendously, from stems of 40cm with tiny flowers, to stems up to 6ft long with huge flowerheads.
Redbridge Produce & Flowers (RP&F) sources its flowers at branch, rather than national, level. “There are different trends for flowers throughout the country,” says the company’s Tim Stansfield. “What someone in Southampton prefers could be different to demand in Scotland.”
However, on Valentine’s Day, red roses are a longstanding, popular choice. Stansfield says Grand Prix tops the list for buyers looking for a deep red rose. For those keen on a more vibrant red variety, Passion is a hit.
RP&F will be promoting different rose varieties this year, although similar to other sources, Stansfield feels that while roses remain a traditional favourite, the younger generation could be attracted to other red flowers, including gerberas, tulips, amaryllis and, “if presented correctly”, carnations.
Stansfield says that florists will be paying more this year, however, as the euro has fallen 17.5 per cent compared to the same period in 2006. Price has been an issue for some consumers for a number of years. “Consumers are not fickle, but they do want value for money,” he says.
Indeed, for every romantic willing to pay extra for beautiful flowers, there are those who bemoan the higher cost of flowers on Valentine’s Day. Jo Read of the Flower Council of Holland says it is a simple matter of supply and demand.
“Valentine’s Day is celebrated on February 14 around the world, and there is massive demand for flowers, in particular roses,” he explains. “If there is a shortage of product, prices are going to rise, and that has always been the case.”
However, according to Read, more suppliers and outlets are offering a broader range. “The greater the choice, the more attractive and better opportunities they will have when supplying consumers,” he says. “After all, outlets, including the supermarkets, need a point of difference too.”
Read stresses that although Valentine’s Day is an important day for selling flowers, the Flower Council of Holland is keen to help increase flower sales every day of the year.
As the media continues to warn of economic slowdown, the floral sector is waiting to see whether consumers, having less money in their pockets, will spend less on flowers.
“Cut flowers have historically been one of the first discretionary purchases to be cut from the weekly shopping list when times get tough,” says Andrea Caldecourt, chief executive of F&PA. “But then they have been one of the first items put back on when the economic situation brightens.
“But, if consumers are feeling gloomy and depressed - which is not hard at this time of year, however full the purse - flowers are a great low-cost, guilt-free pick-me-up. Besides, flowers are such an intrinsic part of the mythology of Valentine’s Day, and the symbolic way we express our emotions.”
Caldecourt argues that the recent unseasonal weather in Israel, increased freight charges from South America and the unrest in Kenya are “far more likely to have an impact on sales”.
The floral sector is indeed watching the situation in Kenya closely. In early January, the country’s flower industry forecast significant losses as supplies were being disrupted by continued rioting in certain areas, following December’s contested presidential elections.
Reports on regional website bdafrica.com suggested that between five and 10 per cent of exports were not even reaching Nairobi airport, causing shortfalls in key European markets.
When questioned in mid-January, Abraham Barno, agricultural attaché for the Kenya High Commission, said flower exports to the UK were largely unaffected. “There have not been any problems getting flowers to the UK from east of the Rift Valley and Nairobi, although there were some short-term difficulties in the areas of Eldoret and Tanzania,” he told FPJ. “We’ve had consultations with our buyers here and they don’t want to shift their sourcing so supplies should still continue as normal.”
Barno stressed that Kenya’s political troubles were ‘highly localised’, and that problems were isolated.
However, as the unrest has continued throughout January, a number of media reports claim that Kenya’s flower sector is facing hard times, and deliveries could be under threat in the run-up to Valentine’s Day.
To date, the smallest flower businesses have been the hardest hit and, as reported in last week’s FPJ, some flower workers around the Naivasha area are not turning up for work because of ethnic tensions.
As the violence continues, sources fear that Kenya may lose some of the ground it has built up in recent years.
Flower production is one of Kenya’s largest foreign exchange earners after tourism and tea, and most flowers are exported to Europe. Indeed, a large proportion of Fairtrade flowers arriving into the UK come from Kenya.
While Kenya is a key supplier of roses, other countries eyeing opportunities include Colombia, Ecuador, Holland and India.
Colombia is seeking to increase its flower exports in the run-up to Valentine’s Day, and Proexport Colombia’s Astrid Duque says the country is gaining market share in the UK.
“Traditionally, Colombia supplied the UK wholesale markets, but in the last few years, we have developed a strategy to maintain our wholesale market business and also increase our participation in retail,” she says.
Intuition, Freedom and Charlotte are all popular rose varieties for Valentine’s Day. “Intuition is produced in Colombia and only on two farms in Ecuador,” she tells FPJ. “Colombian roses are particularly attractive for Valentine’s Day, because of their deep red colour and large heads.”
While Valentine’s Day is a major peak period for Colombian roses in the UK, Duque says wholesalers and retailers are keen to offer other flowers, including alstromeria and chrysanthemums, in different colours throughout the year.
Duque says Colombia compares favourably to some other producers. “Our growers have improved their efficiencies in production, so we are quite competitive,” she says.
Although weather conditions have been favourable to date, Proexport Colombia says it will have to see how the season progresses before it knows the full picture. “The weather is unpredictable and we didn’t expect the frosts last winter, so we’ll have to wait and see,” Duque says. “We are hoping, though, that there will be no weather-related issues.”
Indian flowers are also gaining a following in Europe, and according to local media reports, between 45-50m stems of red roses are expected to be shipped from Bangalore to Aaizmer in the Netherlands for Valentine’s Day this year.
The high royalty charges levied on roses, coupled with airfreight charges, however, are challenges for the sector.
Meanwhile, F&PA is seeking to assuage those concerned that flying in flowers from around the world is bad for the environment. “The UK cannot grow enough flowers on the land available to satisfy demand,” says the association. “Flowers that come from the world auctions in Holland are brought to the UK on trucks and ferries, not planes - and many get there from European growers in the same way too.
“Research proves that growing flowers overseas, where the light is brighter and the air is warmer, uses less fuel - including airfreight - than growing them in Europe, where they would need heat and light all year round. It gives employment, plus education and medical services, to often impoverished rural regions that would otherwise rely on charity handouts to survive.”
Ethical shoppers are also going to have significant choice with Fairtrade flowers this year. Waitrose claims to offer the widest range of Fairtrade roses on the high street. Some 90 per cent of its roses bear the Fairtrade mark, and Waitrose is busy promoting its Fairtrade offer of 12 red roses for £14.99. Other retailers stocking up on Fairtrade flowers include Asda, Sainsbury’s, Somerfield, Tesco and Morrisons.
ANDREA CALDECOURT’S PREDICTIONS FOR 2008
Consumers are starting to “walk the talk”, after saying in innumerable surveys that they are concerned with issues green and ethical, but not reflecting that in their behaviour. This is a key factor that will influence the fresh produce industry in 2008. In some cases, the public is even forcing suppliers and retailers to make positive changes in certain areas, such as recycling or sustainable sourcing.
The retail market is still polarised geographically; however, some towns have abundant choice - including farmers’ markets, grower nurseries, independent retailers and a range of multiples - while in others, there is one multiple chain and a poor supply choice in both range and quality. This makes it hard for some consumers to find products that meet their demands.
An important trend for this year will be a renewed emphasis on home-grown produce. The Flowers & Plants Association (F&PA) is constantly asked by public and corporate purchasers for UK-grown product. Our UK grower members are benefiting hugely from this demand bounty. Growers who are not F&PA members are missing out! We are also questioned about green issues generally - what pesticides are used, and when; whether products are biodegradable or recyclable; what is the carbon footprint of production, etc.
Companies that enjoy respect or loyalty demonstrate transparency and congruence - they have a corporate social responsibility programme because it is part of their innate structure, not a cynical PR ploy; or they ‘pile-em-high-sell-em-cheap’, and do not pretend otherwise. Increased retail polarity is the result: consumers either want to know their organic chicken’s name, where it lived, and what its last meal was, regardless of cost; or they do not care that it stood on dirty concrete the size of a sheet of paper for its entire life, pumped full of antibiotics, so long as it is cheap.
The way the next 12 months will pan out is a mixed bag across the industry. In some areas, things are tough, with limited supply and even tighter margins. In others, things look rosy, with sales growth and booming demand. For all sectors it would be nice to see floriculture growers (just like food farmers) getting a fair price, and the consumer appreciating why crops cost what they do to produce. The F&PA’s aim for 2008 is to increase consumer understanding of the industry - how we produce crops, how they are prepared and distributed for sale, what skills are involved - which is a mystery to most people.
The fresh produce industry shows the greatest potential for growth in internet retailing, and both B2B and B2C will be key areas. It is difficult for floriculture, as the product demands to be touched and smelled, and is fragile to transport - but for sites that make buying easy, there is a huge market waiting. There is also increased demand for indoor plants in both the B2B and B2C markets, but to fully take off, this needs to be accompanied by higher service levels in terms of care advice and expert support, not generic labels and poor in-store merchandising.
The single resolution for a fresh produce business should be to make a profit, full stop - but increasingly important for consumers is that companies do not profit at the expense of everything else, such as high-street choice, or the planet’s health.
ENTERPRISE PLUGS THE GAP
Enterprise Rent a Car may not be the first thing one thinks of when contemplating Valentine’s Day, but the company says that February 14 is one of its busiest times of the year.
“There’s a real spike in demand for our van rentals in February, as local florists hire our vehicles to help them deliver their flowers,” says Rob Ingram, head of corporate sales for Enterprise Rent a Car. “Obviously florists have vehicles that they use throughout the year, but they can grow their business for those few weeks when there’s a strong demand.”
Ingram says there is not one particular area in the country where Enterprise is particularly popular during Valentine’s Day, but he says the company represents an efficient alternative for those florists stuck with lots of flowers but insufficient transport.
BOXMART BOXES CLEVER
BoxMart has enjoyed a “terrific response” to its new Eco Posy box, pictured. “The pearlised ivory and chocolate brown colours are selling particularly well, and the cherry red is a popular choice for Valentine’s Day,” says BoxMart managing director Joanne Offord.
She adds that with Mother’s Day falling so early this year, on March 2, many florists are combining their orders for Valentine’s Day and Mother’s Day, saving themselves money on delivery charges in the process.
The Eco Posy Box is identical in size to BoxMart’s Posy Box, and takes up less space when flat packed. Moreover, less waste material is generated in production, and the company says there is a better finished appearance, as raw edges around the side of the box are eliminated.
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