March 2007

News:

Flowers For Kids® Creating a Flower Culture, One Class at a Time
The Flowers For Kids® program increases demand for cut flowers by inspiring children to encourage their parents to purchase and appreciate flowers. In each class one of your local retail florists teaches children, parents, teachers, and school administrators how to appreciate, care for, and make their own bouquets to take home. Each child also receives an invitation to visit the flower shop and take a “flower care” quiz in order to earn a “Flower Kids Diploma” and a couple of fresh flowers. More importantly, each child must be accompanied by a parent. This gives your florist the opportunity to create a “Flower Community” Flowers For Kids® will go to your area and train your retail florists how to give Flowers For Kids® classes to local school children.

Flowers For Kids® and its sponsors supply teaching material, all the flowers, handouts, and floral preservative sachets. Flowers For Kids® would like to help you implement this unique Floral Community Program in your area. One or more Flowers For Kids® instructors will spend up to a week in your community and train 30-100 of your most motivated florists and retailers in how to teach the one hour Flowers For Kids® class. In 2006 we trained more than 322 retail florists to become certified Flowers For Kids® teachers. We have already scheduled to train more than 400 in 2007. Each training session can accommodate 15-30 attendees and lasts 2½ hours. Each florist will be given enough material to teach up to 500 students. That means more than 10,000 students in your area could learn about flowers and make their own bouquets to take home. Most importantly, through our “Kid Flower Quiz” and “Flower Kid Certificate” program, we show how the retailers can get the children to take their parents to visit the florist.

After the Flowers For Kids® training session, your retailers will feel comfortable and have all the tools to teach children, their teachers, administrators, and even their parents, all about flowers. The kids class encompasses how we grow flowers, the different types of flowers (fillers, lines, focals, and greens), and most importantly, how to take care of flowers. At the end of the class the kids make their own bouquets to take home: “Look Dad, I made this bouquet for you and I know how to look after these flowers!”

www.flowersforkids.org, info@flowersforkids.org

WF&FSA Elects Hans Brand Pacific Regional Director
Annapolis, MD, February 23, 2007 – Hans Brand was elected pacific regional director of the Wholesale Florist & Florist Supplier Association (WF&FSA) and took office at the Association’s Annual Convention in Phoenix, AZ in late February 2007. In this position, Brand will serve as a member of the WF&FSA board of directors where he will represent Association members in California, Oregon, Hawaii and Washington. Brand, founder and president of B & H Flowers, Inc., Carpinteria, CA, was elected to fill the expired term of the previous WF&FSA pacific regional director, John Donati, Ocean View Flowers, Lompoc, CA. Brand moved from Holland to California with his family in 1985 and started B & H Flowers. Hans has served on the Board for the Santa Barbara County Flower & Nursery Growers. He currently serves on the Executive Committee for the California Cut Flower Commission and the California Association of Flower Growers & Shippers (Nor Cal) Transportation Committee.

In 2006 Brand received the Paul Harris Award from the Carpinteria Morning Rotary Club. WF&FSA is a dynamic business organization dedicated to providing members with the information, services and support they need to remain competitive in today’s constantly changing market. The Association offers a wide variety of programs and activities to support its mission of enhancing networking and business opportunities for all floral wholesale distributors and suppliers.

WHOLESALERS. Because it takes more than flowers to grow your business.®
WF&FSA 147 Old Solomons Island Road, Suite
302Annapolis, MD 21401
Phone: 888-289-3372, Fax: 410-573-5001

Colombian Flower Industry Celebrates Socially Responsible, Environmentally Friendly Florverde® Label
January 24, 2007 - The Colombian Association of Flower Exporters, Asocolflores, is proud to announce the 10-year anniversary of Florverde®. Florverde® is a unique certification program created by Asocolflores to improve Colombian workers’ quality of life and to ensure Colombian-grown flowers meet specific environmental standards. Today, approximately three-fourths of all cut flowers imported into the U.S. — two billion stems — come from Colombia. “The Colombian flower industry has made significant advancements since the creation of the Florverde® certification. Today, the Florverde® label is recognized among commercial flower buyers in the United States and Europe as assurance that our flowers have been grown in compliance with social, environmental, labor, and occupational health and safety standards,” said Asocolflores Chairman of the Board Ernesto Velez.

To mark the 10th anniversary, a new web site will be launched in February of this year. Florverde.org will educate growers, buyers and the public about Florverde’s standards and guidelines and make additional certification information readily available. “The Colombian flower industry is committed to increasing the number of growers that are Florverde®-certified,” said Vélez. “This website will act as a resource to wholesalers, retailers and others in the distribution chain looking for information on the Florverde® label.” Currently, more than 165 Colombian farms participate in the Florverde® program, representing half of the cultivated area in the country.

The Florverde® certification and standards were developed by Asocolflores a decade ago as a way to improve the lives and living standards of floral farm workers and their families; to preserve and protect the environment for the industry’s farmers for generations to come; and to ensure high-quality, affordable flowers for consumers year-round. In order to receive Florverde® certification, participating farms must comply with all compulsory standards and codes of conduct, including operational and social guidelines. Certification is verified by an independent third party, SGS, a renowned international audit company based in Switzerland.

One of the most compelling aspects of Florverde® is its focus on the health and welfare of the Colombian worker. Florverde’s stringent workplace standards are designed to improve the lives of Colombian workers by providing social programs that support workers and their families, fostering a system that facilitates personal and professional growth and opportunity, and by creating and maintaining a safe work environment. Environmental standards and care and handling measures defined by Florverde® represent safe, sustainable floriculture and yield an abundant supply of beautiful flowers that are available throughout the year. Florverde® certified farms operate consistently with U.S. regulations for the application and use of agricultural chemicals. Workers are educated and trained in the safe use of these chemicals and provided safety equipment appropriate to the job task — ranging from protective clothing and gloves, to equipment that is ergonomically beneficial, to showers on site. In addition to training programs, Florverde® farms also implement risk analysis, emergency plans and oversight committees comprised of both management and workers to protect employees from chemical exposure and workrelated injuries.

Florverde® also encourages overall improvement in the Colombian floriculture industry by offering farms not yet involved with Florverde® the opportunity to participate and work toward certification. Through ongoing communication, Florverde® works with farms to diagnose specific needs and then implement a plan to meet those needs — whether through capital improvement or specific social programs — and achieve certification. Americans typically spend $20 billion per year on flowers and plants. With more than 50 types of flowers grown in Colombia, it is the largest supplier of fresh cut flowers to the United States. To learn more about Florverde®, visit www.florverde.org

CCFC Board Appoints New Chairman
January 19, 2007 Capitola, Calif. - Wilja Happé of Brand Flowers Inc, Carpinteria, has been appointed Chairman of the Board of Commissioners for the California Cut Flower Commission (CCFC). She replaces Dan Vordale of Ocean View Flowers, Lompoc, whose term expired in December. Happé has been a member of the CCFC Board of Commissioners since 1999 and has served on the CCFC Executive Committee for 4 years.

In accepting the Chairperson appointment, Happé said, “I want to ensure that the CCFC’s marketing efforts help California farms sell the flowers that are available during their natural season. It is vitally important that we make our marketing efforts within the state directly applicable to what our members have for sale, during the time of year that we naturally grow the product, and that we focus on the colors and varieties that are available.”

Her other major goals for the future of the CCFC include helping to finalize the coalition and management agreement between the CCFC and the California Association of Flower Growers and Shippers (CAFG&S), and encouraging all California growers to participate in a cold-chain agreement between growers and the major flower trucking lines. Happé also expressed her support for the new national Floral Marketing Funding Initiative that is being discussed by the floral industry.

Born in the Netherlands in 1963, Happé graduated in 1986 with degrees in Social Work and Psychology from ‘Hogeschool van Amsterdam’. Shortly after immigrating to the United States and settling in California, she co-founded Brand Flowers Inc and its subsidiaries in 1989 and became sole owner in 2005. Brand Flowers Inc., is a leading cut flower and greens nursery and bouquetmanufacturer. With over 1.3 million square feet of cut flower production specializing in Dutch flower varieties, and a full time staff of more than 250, Happé’s company services traditional wholesale florist outlets, mass market chains, and consumer-direct websites.

Happé has a long and distinguished record of service to the floral industry including being a past president of the California State Floral Association and a past board member for the Society of American Florists, the Santa Barbara County Farm Bureau, and the Buy California Marketing Agreement. Prior to her appointment as the CCFC Chairperson, Happé chaired the CCFC Governmental Relations committee and was an active member of the CCFC Promotion & Marketing committee. Currently she is involved in California Women for Agriculture, and the national Floral Marketing Funding Initiative, and serves on her children’s local school board.

Happé is married and the mother of five children and the grandmother of two. She is an active participant in daily life at the farm and within her community and in the lives of her family. The CCFC also announces the following committee chairmen appointments: Finance Committee, Hans Brand, B&H Flowers; Marketing Committee, Chad Nelson, Eufloria Flowers; Nominating Bylaws, Bob Mellano, Mellano & Co; Governmental Relations, June Van Wingerden, Ocean Breeze International; Research & Education, Mike Mellano, Sr., Mellano & Co.

Why Suppliers Sell Through Wholesale Florists

1. Transportation efficiencies. Wholesalers bring in volume shipments from suppliers and efficiently deliver items directly to many different retailers.
2. Wholesalers break bulk. Manufacturers focus on quality and efficiency, not small packaging and small shipments. Wholesalers break bulk so retailers get the appropriate quantity.
3. Just-in-time inventory. By selling through wholesalers, manufacturers bring their inventory closer to where the product is needed and give retailers more ordering flexibility.
4. Consolidated sourcing. With one call to a wholesaler, retailers can access a wide variety of sources, and manufacturers can sell to hundreds of florists.
5. Broad-based sourcing. Wholesalers source from around the world to many retailers so manufacturers can sell the “occasional” demand for their product.
6. Local market knowledge. Wholesalers link manufacturers with thousands of retailers that the manufacturers wouldn’t reach on their own.
7. Lines of credit. Attempting to extend long-distance credit would financially expose manufacturers, but wholesalers can extend credit to local retailers.
8. Sales staff. Wholesalers introduce new products and recommend existing products, extending the sales reach of many manufacturers.
9. Daily contact with customers. Wholesalers are in regular contact with retailers so the manufacturers’ products are consistently promoted and easily available.
10. Onsite product inspection. Wholesalers allow manufacturers to satisfy, not frustrate, retailers by offering onsite inspection of product.
    

Ecuadorian Flower Growers Misunderstand the Floral Marketing Funding Initiative
A recent letter that was sent by the EXPOFLORES Board of Directors to the trade press very clearly shows the opinion of some flower growers and their fear of having their very minimal margins squeezed even more. Unfortunately, some of these fears are based upon incorrect information and a lack of understanding. The letter was sent to be published before being discussed with the Floral Marketing Funding Initiative leaders. It is very understandable for any business to feel that they should not be put into a position where they have no control over their own destiny. The Initiative was formed by representatives of all the major industry associations and EXPOFLORES was invited to participate. Even though they declined, their perspective has been well represented by ASOCOLFLORES, AFIF, and FPO. Since the issues are not solely felt by off shore growers, CCFC has also made many of the points raised by EXPOFLORES.

Following are explanations and responses to the points which their letter raised:

• Cut Flower Order will strengthen anti-American sentiments.
• The order is an action that only applies to USA companies. The USDA has no authority over non-USA businesses. The order will be one that is formulated by USA domestic producers and USA importers. Any assessment will be equally applied to all flowers sold in the USA but only to flowers sold in the USA.
• Ecuadorian Growers believe that if the order is put into place they will receive lower prices for their flowers.
• There are many factors which impact upon the setting of a price in the market place. Producers and suppliers that can provide their goods and services without incurring the same costs as their competition can sell for less. The promotion order which is being considered is formulated so that every business, every flower, has the same assessment. The competitive position of all companies remains the same. The Coalition realizes that importers and domestic growers cannot afford to absorb the assessment. Any additional expenses must be included in their cost of goods and passed on through the chain of distribution in the form of higher prices.
• The total cost would be approximately USD $8 million per year.
• The intent of the program is that whatever the amount, it would be an investment that would yield a return. Flower prices fluctuate by much more than 2% frequently throughout the year. These fluctuations are caused by many variables in the market place, including increased costs and variances in demand.
• There is no guarantee and little precedent that consumers will bear the cost.
• Over the last twenty years, the real price of flowers has gone down- both what growers receive and what consumers pay. There has been no major national promotion of flowers. Every other major industry from perfume, to drugs, to autos, to cornflakes has significant marketing dollars built into the products at the producer level. These costs are all passed along in the prices of the products to the consumers. This is exactly what promotion orders have done for other agricultural products- such as the “Got Milk” campaign.
• Some of our members will not be able to absorb these costs and will be forced to shut down.
• Without a concerted effort by the industry, many more will be forced to shut down. This is happening already.
• EXPOFLORES believes this is axation without representation.
• First of all this is a USA activity that is overseen by the US Department of Agriculture. In the spirit of consensus building, the Coalition has always attempted to include all industry segments and points of view, including offshore growers. The development of this program has been open to anyone who wishes to participate and some Ecuadorian growers have attended past meetings and participated in discussions. The specific provisions of the promotion order are still a work in process. The perspective of EXPOFLORES and all interested parties are still being heard and considered. The final decision as to what will be included in the promotion order is in the hands of a development Committee which is made up solely of importers and domestic producers- those who would pay the assessments. It would be foolish to bring a program to a vote, if it does not have widespread support.
• This goes against normal and accepted trade practices…is a non tariff barrier to trade.
• One of our first visits last March at the beginning of this effort was to the US Trade Representative’s office. They are charged with making sure that what EXPOFLORES is contending does not happen. Under the guidance of the USTR, all program suggestions must be consistent with free and fair trade practices.
• Ecuadorian growers will not meekly stand by but will vigorously express their opinion through their government…the Ecuadorian Embassy in Washington…US Embassy in Quito…their representatives in Washington.
• In view of the fact that there is not yet a promotion order to lobby against; would it not make more sense to participate in the development of an order that would satisfy the concerns of the EXPOFLORES membership? This is an industry wide effort with many different constituencies. There is no rush. The Coalition realized from the beginning that the key to success was in listening. As the industry speaks, the program changes. In the end, we must find common ground for compromise. That is, if everyone truly wants to take action that will create more flower buyers and raise consumption of flowers in the USA for the betterment of the Floral Industry at all levels.
• EXPOFLORES believes that flowers should be promoted by strengthening existing voluntary marketing and educational programs.
• The law under which this order can be implemented was passed because voluntary programs do not raise the funds necessary to be effective. The mandatory nature of these programs is to eliminate free riders who want the program but don’t want to pay for it. The industry had the largest voluntary marketing program in the USA with AFMC. In its largest year, this program was only able to collect about $6 million. AFMC was abandoned when Promoflor was put in place. Promoflor failed because many of those paying felt that there were free riders and it wasn’t fair. This new program needs to learn from history.
• All links in the flower chain, from the grower to the retailer, should be included in the creation and implementation of these programs.
• There is universal agreement here. The method that has been established by USA law is what is being pursued. Injecting this cost at the earliest point in the distribution chain assures that the program is broad and fair and that its costs will be passed along to all members of the flower industry and eventually to American consumers of flowers. There are two courses of action:

1. We continue to ride things out as they are given to us or,
2. We work to find a way to make things better.
   

The members of the Coalition do not want to see our industry’s businesses continue to suffer. Research has clearly shown that only about 25% of consumers buy flowers. We have a wonderful product. It brings joy to everyone it touches. We just need to touch more people. Marketing is the only way and a fair and broad program will make it happen. It’s a natural Law that Supply and Demand will balance, we can have an effect on this law by pursuing this kind of Initiative or doing nothing at all.

Please forward any questions or comments to-
Charles Kremp, President of the Floral Marketing Funding Initiative Coalition, charles@kremp.com
For the Floral Marketing Funding Initiative Coalition-
Red Kennicott, Chairman
Charles Kremp, President
Clay Sieck, Treasurer
Mike Mellano, Sr. Development Committee Co-Chair
Gustavo Moreno, Development Committee Co-Chair

Industry Leaders Join AIFD to Advance Floral Design Education
(Baltimore, MD)- Seven leading floral industry organizations have stepped up to become the first companies to be named Elite Rose Partners for the American Institute of Floral Designers’ (AIFD) National Symposium, it was announced today by Tom Shaner, AIFD’s Executive Director.

“AIFD created the new Elite Partners program as a means of providing a better opportunity for floral industry organizations to help AIFD advance the art of floral design education,” explained Shaner. “Elite Partners make a significant financial contribution to AIFD that helps underwrite the Symposium and other education programs offered by AIFD.”

In return for their contribution, Elite Rose Partners are provided a variety of marketing opportunities designed to help them reach AIFD members and other floral design artists. Among those benefits is the direct underwriting of a specific education program at Symposium, advertising in the Symposium program book and the AIFD Membership Directory and the Focal Points newsletter, Annual Partner Membership, email broadcasts to members and much more.

Committed to be Elite Rose Partners for the 2007 National Symposium which will take place in Palm Desert, Calif., July 7-12, are: Platinum Rose ($15,000 commitment): Accent Decor, American Floral Industry Association, California Cut Flower Commission, and Teleflora; and Gold Rose Elite Partners ($10,000 commitment): FTD, Garcia Group/Plus One Imports and Smithers Oasis.

Additionally, AIFD’s own Southern Regional Chapter has agreed to become a Silver Rose Elite Partner and to sponsor a program at the Symposium.

AIFD will only accept five Platinum, ten Gold and five Silver Elite Rose Partners. Those who commit to participating are guaranteed a first right of renewal on an annual basis.

AIFD’s new Elite Rose Partners are being recognized on the AIFD Web site and in the colorful multi-page Symposium promotional brochure which has been distributed to over 4,000 floral designers.

For details on the new AIFD Elite Rose Partner program or the AIFD National Symposium, visit www.aifd.org or contact Tom Shaner at 410-752-3318.