The Shifting Landscape of the Floral Industry

Carle Place, NY -- (SBWIRE) -- 09/28/2012 -- The floral market is at once a complicated and profitable industry. Over the past decade the industry has grown by almost 30% from a $26.7 billion dollar industry to a $32.1 billion dollar industry. Having endured two major downturns the flower industry is actually doing relatively well, though many problems still persist. While the United States is one of the largest consumers of flowers, it produces very few of them. In fact, 68% of all flowers that are sold in the United States are imported from countries like Colombia, Ecuador and the Netherlands. For this reason, the transportation of flowers has become a large challenge for wholesalers and retailers. Increasing fuel prices have made the cost of importing daunting. The mounting expenses of doing business have been further compounded by a general pullback by consumers with less to spend than in previous times.

Producers in the U.S will be subject to shifts in the climate that make it more difficult to produce good products such as the severe drought recently announced by the U.S Department of Agriculture. This will reduce the flower supply of local producers, making it even more difficult for them to compete with their overseas counterparts. As a result, major floral companies are forced to look at alternative ways to boost revenue including branching out into tangential industries such as baked goods and party supplies.

While there aren’t many major players in the floral industry, it remains very active. Flower Foods Inc. recently announced the acquisition of New England-based Lepage Bakeries Inc. Lepage Bakeries has been in businesses for over 100 years (founded in 1903) and posted sales of over $166 million from three bakeries. The acquisition of the firm gives Flower Foods Inc. a large boost to its already robust bakery division which already includes over 30 bakeries.

Few wholesalers have met industry challenges the way that 1800-FLOWERS (FLWS) have managed to. Formed in 1976, 1800-FLOWERS is family-owned with headquarters in Carle Place, New York. Over the past few years the company has expanded its offerings to include cookies, party supplies, candy, gift baskets and more. With its wide selection and convenient ordering process, 1800 Flowers is poised to become one of the most reliable one-stop shops for all events. It will be very interesting to see how 1800FLOWERS continues to navigate through industry changes through expansion and innovation.