NEW YORK STATE

FLOWERINDUSTRIES, INC.

November-December 1972

Zl COExecutive Secretary/Treasurer, Herbert E. Johnson

900 Jefferson Road, Rochester, New York 14623

Flowers For All PeopleThe Case of the Emerging Mass Markets

for Flowers

Talk at the 1972 NYSFI Convention

by Ed Smoots. Bachman, Inc.

Thank you Professor Gortiz both for your introductorycomments and particularly for the opportunity to participate today in this unique program.

Although many of us at Bachman's European FlowerMarkets are new in this industry, we do hold certain judgments about its development. We anticipate substantialchange occurring in the distribution and merchandisingof floral products. We hope to contribute and help shapethat change.

Many of you have heard of Bachman's EuropeanFlower Markets. We represent one example of the changealready occurring in the marketing of plants and flowers.Wesell through mass market outlets such as supermarkets,discount and department stores. We operate as a leaseddepartment within the host store, providing a floral department with a broad variety of merchandise. The outletis under our operating control, supervision and logo. Theretail "market" or department is staffed with our salesperson. A regional distribution center supports these retail outlets serving as a supply center, holding house anddelivery point.

Sales are cash and carry, usually rung up through thestore check-out lanes along with other merchandise. Wedo not provide floral arrangements or other traditionalfloral services. Consequently prices must be generallylower than that of the retail florist. Our market strategy-must be one of expanding the total usage of floral products in the home.

Conceptually, our system is the product and result ofMr. Ralph Bachman. He began experimenting with themerchandising principles many years back and opened thefirst EFM outlet '[[<> years ago. Today, Ralph serves asChief Executive Officer of EFM—having moved overfrom the Presidency of Bachman's in July of last yearwhen EFM was purchased by The Pillsbury Company.

EFM presently operates in the Twin Cities, Dallas,Houston, Milwaukee and Chicago.Lets Consider the Future

With that basic explanation of European Flower Markets as a point of departure, let's consider the future of the

Editor's Note—In succeeding issues of the bulletin wewill be presenting theother side of the story aspresented at the Management Workshop. "The Casefor the Service OrientedFlorist Shop" as we summarize the total management workshop under "TheChallenge of the ChangingMarkets for Flowers."

market place as the first step in evaluating the mass marketing of flowers as a business opportunity.

What about the consumer? What will she demand?How can she be sold—where—how—what items? Whatrequirements will she place on the production and distribution capabilities of our industry to serve her wants andcompete for her disposable dollars? Believe me, we doknow that her funds are finite and her shopping decisionswill continue to be made largely on the basis of value.

To get some preliminary insight into these questions,we note four trends that are apt to continue over an ex-extended period of time:

1. Affluence of the American Consumer.In this area we are guided primarily by planning assumptions of the U.S. Department of Commerce.Projections made using their source data suggestthat total disposable personal income will nearlydouble between 1970 and 1980. On a per householdbasis, this would represent an increase from 810,000to 817,000. Unless there are major economic disturbances, consumers clearly will have more realdollars to spend.

2. Awareness of the Ecology.We believe that the growing appreciation of naturalresources will continue. Sensitivity to and appreciation of floriculture is likely and consistent with this

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New York State Flower Industries Bulletin, November-December, 1972

Flowers For All People(continued from page 1)

trend. We see in the younger generation the expressions of greater interest in these products (alongwith some rejection of more materialistic values.)Preserving and restoring the ecology will requiresubstantial investment—some modest part of thiswill be made directly for decorative plants andother products of commercial floriculture.

3. Changing Life Styles.While predictions about future life styles are hazardous indeed, there is likelihood that certaintrends will continue—or at least influence—thechanging market place. The please omit's and barefoot weddings strike at the heart of the florist industry but perhaps it is reasonable to expect some further reaction to the pace and demands of modernlife upon the individual with some further expressions of grace and beauty resulting to balance thetechnology changes and the pressures of our advancing industrial society.Family size is declining somewhat. More and moreresidential construction is in the form of apartmentsand condominions. Movements toward greater individual freedom, expression, and liberation reflectchanging values and more appreciation for thebeauty and esthetic qualities of life.

4. Non-Floral Retailing.In assessing market potetnial for the decade aheadwe must surely give weight to the increasing participation of chains and other mass market retailers.There wil 1 be added retailing power behind theproducts of ornamental horticulture and floriculture. We will consider their role in greater detail;for the moment though, let me express the conviction that this change in overall distribution can provide an important basis for increasing total marketdemand.

These four trends or forces suggest a growth market. Other factors will apparently operate favorablytoo. The floral industry continues to develop a moremarketing-oriented posture. Larger firms are showing specific interests in participation. In Minnesotathe Jolly Green Giant has invested in garden storeoperations. Elsewhere, Colgate has a new ventureunder development to process and market preservedflowers. Vendo Mfg Co has invested in a flowermerchandising business. More firms will enter invarious roles.At EFM we are planning on the basis that consumerexpenditures for the goods and services of commercial floriculture will double from 1970 to 1980. Intotal dollars this is a growth from about 2 billion to4 billion.We believe that $1.8 billion out of the $4 billiontotal will be sold through non-floral outlets. Becausethere are less services involved, with lower averageprices, this means that at least half of the units soldin 1980 will move through non-floral outlets.

For the grower and wholesaler, both the florist shopsand the mass market outlets represent growth opportunities. Both will be huge markets, with the mass marketgrowing somewhat faster from a smaller present base.

In a very real way our fortunes are tied together;grower, shipper, wholesaler and retailer.

Why Sell in a supermarket?But, let's return again to the mass-retail outlet. Why

sell floral products in a supermarket? Consider the supermarket in 1980. It will be a much larger store, often inexcess of 30,000 square feet. It will attempt to offer moreand more one stop shopping. Look what is already happening—drug departments, deli and bakery sections,gourmet shops, hosiery racks, household supplies, petproducts—an ever expanding variety of departments.Food store operators net after taxes less than 1% on sales.They are looking for product opportunities where margins are higher, higher employee productivity—we gener-erate additional dollar volume without an accompanyinglabor burden for them, and for new ways to provide customer convenience. Food stores doing over $5 million insales annually are already common and will become muchmore so. (A flower market in such a store should generateiy2 to 2% of that volume yearly.) These stores will be solocated that they draw from larger geographical areas butwill still be only 8 minutes away from most of their shoppers.

More and more of these large new stores already on thedrawing board have a "flower department" designed intooriginal plans. Customer convenience and the materialistic pursuit of the dollar also applies to the discount anddepartment stores, shopping malls, office buildings, airports, and subways.

Each is faced with rising costs and each is continuallysearching for ways to increase dollar revenue.

One great advantage this industry has is the beauty ofits product. Wherever that product is properly presented,it adds to the decor of that location.

The Challenges AheadLet's examine for a moment two or three of the chel-

lenges ahead.Paramount, in our opinion, is the requirement for qual

ity. This is easy to appreciate in consumer terms. There isno value in a dozen roses—even at $1—if they wilt thefirst day on the table. Value exists only with adequate lifespan of the product in the home. And today's shopper ismore value minded than price minded.

Looking at the future realistically you must expect themass market retailers to be, not the quick outlet for marginal product, but rather the force that will bring strongerenforcement of quality assurance to the industry. This isnatural, for the contribution of the mass market retailerwill have to be to encourage and build every day usage.

Another challenge, and possibly the greatest challenge,comes from within. The ability of a grower, wholesaleror retailer to analyze, evaluate, plan, prepare, and implement a new mode of operation within his established business and still maintain an on-going business is not easy.

The rewards are there—but add to an already busy businessman the need to seek out good traffic locations, negotiate an agreement, establish product availability withgrowers, wholesalers and suppliers which will meet thehigh quality, reasonable price, and customer appeal, demands of the market place, purchase equipment, prepareefficient paperwork flow, train people, coordinate installation, open for business—and still keep things runningsmoothly at the shop. A sizeable chore—but the rewardsare there.

We are encouraged that in the Minneapolis area retailflorists sales are increasing while we have also added volume from our outlets at the current rate of $2 million ayear.

New York State Flower Industries Bulletin, November-December, 1972

There are people in this room who are achieving an excellent measure of success, proving Minneapolis is notunique in itself.

Whether the mass retailing forces can deliver againstthe promise is subject to question. Clearly there are validconcerns.

—The need for high quality merchandise—The need to provide sound consumer value—Adequate supply, variety and excitement of prod

uct

—Effective and reliable transportation.The secret of a growth market lies in increasing per

capita usage. With household size declining—and population increases moderating substantially—the expendituresfor floriculture must increase from slightly over $30 perhousehold to something over $50 per household in 1980to support our estimate of a $4 billion market. This is aformidable marketing challenge.

The consumer of the 80's may not be so very differentthan they are today. We have commented on some of thetrends that may have an influence. Most importantly, wewill haveTWalter and influence her purchasing decisions.This can be accomplished as we make our product moreinteresting, attractive, convenient, more durable, morevaluable—most of all as we build confidence in its quality.

Mass Retailing is Here—So—There no longer remains a question of whether mass-

retailing will occur. It is already here. The important concern that now arises has to do with its effect. Will it represent a constructive development for the industry and forthe consumer?

Perhaps it is too early to fairly evaluatethat question.The nature of change is such that it generates some

resistance and fear. The nature of effective competitionwill change to some extent and some dislocation could occur. Adaption to change is necessary to growth and is apart of the growth process itself. Rarely has it been otherwise. Change is an evolutionary process—if it producesgrowth and efficiency then it can be beneficial and constructive. At EFM we deeply believe that with responsibleparticipation our role can be a positive one. By 1980, if wecollectively respond to this challenge in those ways weare each best equipped to do, there will be a new dimen-son, a new vitality. The rewards of substantial growth arethere to attract us. Despite growing pains, differences andunsolved problems, webelievea healthier and stronger industry wilt result.

SKIN FUNGUS FROM PEAT MOSS CITED*

Washington State Nurserymen's Association warns aboutsporotrichosis, a chronic skin disorder that is described inmedical literature as a noccupational disease among horticultural workers, florists, and farmers.

The disease is carried by a fungus parasitic on someshrubs and bushes and apparently carried in peat moss. Itusually shows up with minor abrasions of skin wounds.Early symptoms are a painless nodudar swelling under theskin, usually the fingers, hand or forearm, followed by additional nodules forming a linear pattern from the original lesion.

If untreated, the skin over the nodule turns dark andbreaks down into an ulcer or a string of ulcers. Advancedcases may take considerable time to clear up.

Preventive measures include protection from skinwounds and abrasions, antiseptic treatment of even

New Pot PlantClerodendrum thomsonae Ball

by Dr. Harold Hildrum, Research AssociateDept. of Floriculture and Ornamental Horticulture

Cornell University

Clerodendrum has been grown as a pot plant in Europefor many years. The plants are propagated in the fall andflower in the spring. Summer-grown Clerodendrum madelong shoots with a few or no flowers. This problem issometimes found in the late spring. This is perhaps themain reason why Cleodendrum has not been grown ona larger commercial scale.

At the Department of Floriculture (Agricultural University of Norway) a clone of Clerodendrum was selectedfor its most prolific flowering habit. Most of the growersin Norway are now using this clone of Clerodendrum.Research has shown that short days and high light intensity favors flowering. It is possible to flower plants fromApril to November. Summer-propagated plants flower inabout 12 weeks after sticking.

Flowering can be a problem even with short days andhigh light intensity. Experiments at Cornell have shownthe new growth retardant A-Rest (not on the market yet)inhibits shoot growth and effectively promotes flowering.B-Nine has little effect and Cycocel is effective only witha very high concentration as a drench. A-Rest is verypromising and seems to solve many of the problems withpoor flowering in Clerodendrum.

Recommendations for the Culture of Clerodendrum

1. Propagation. Use one node cuttings—mist and bottom heat. Air temperature 70°F. The cuttings willroot in 10-12 days.

2. Potting. Use a light soil mix with pH 5-6. Plant 1-3cuttings per pot, depending upon the size of the endproduct desired, in a 4-5"pot.

3. Pinching. If multiple cuttings are used per pot,pinching is not necessary and the time for floweringis reduced with about 3 weeks.If a single cutting is used the new shoots should bepinched when they are 1-2" long. Remove only thetip (softpinch).

4. Flowering. Start short days (10 hours) from theday of pinching. In the middle of the summer, thetemperature may become too high under the blackcloth and in that case, natural days should be usedIf A-Rest is used, short days are probably not neces-ary any time of the year. Temperature should beabout 70°F. High temperature enhances shootgrowth and inhibits flowering and temperatures below 70°F cause the growth to be very slow.

5. Flower Abscission. High temperature and low intensity can cause a serious problem with bud andflower drop. Fumigation with insecticides also promotes abscission. Transportation of the plants indarkness for more than one day at high temperaturecan cause bud drop. High light intensity or lowtemperature (below 60°F) prevents bud drop.

minor breaks of the skin, and immediate medical attentionto any persistent wound or nodular swelling,•from: Seed Trade News, September 20,1972 issue

New York State Flower Industries Bulletin, November-December, 1972

Notes

for the

Retailer

Handling and Maintenanceof Foliage Plants

Prof. Malcolm R. Harrison

Extension Specialist in Floriculture, Rutgers UniversityNew Brunswick. N. J.

As the Wallace R. Pierson Memorial Lecture for 1972, atConnecticut Florists' Day. March 5, 1972.

(Reprinted from Connecticut Florists' Ass'n Bulletin—April)

Foliage plants, particularly those used in public areas,are important to everyone in any phase of the florist business. Every good foliage planting is a living advertisementcarrying the message to all who view it. It says clearlythat plants and flowers are not only beautiful, but areneeded to compliment our most attractive buildings andmake our environment more livable. Good plants andplanting promote the sale of other foliage plants, includingpliilodendrons in 21/2" pots and large indoor trees. Butunfortunately, the converse is also true of poorly conceived, planted, and maintained plantings. They invariably fail and the area is either left barren or filled withplastic plants. Growers, retail florists, and wholesale florists all have good, practical reasons to be interested infoliage plants and promote their use, even though they arenot growing or selling them. There are practical reasonsand humanitarian reasons also.

Our complicated, computerized society needs greenplants to soften our angular surroundings and remind usof our origin. The use of plants in horticultural therapy iswell established and all of us can benefit from the beautyand tranquility of well arranged green plants.

Foliage plants have a long history. Three thousand fivehundred years ago the Egyptians grew Frankincense treesin containers. The development of potted plant cultureduring the Roman era is somewhat parallel to that of today. As the Italian cities grew, there was little open spaceand the Romans used the flat roofs of the homes for container gardens. Today our cities also have little space,but with our ability to control indoor environment andplants from all parts of the world readily available, wecan maintain plants in buildings as well as on them.

What makes a good foliage planting? Unlike the carnation or rose grower, the foliage plant grower can't assure success simply by supplying a high quality, well conditioned product. Success depends on many factors which

may be controlled by a number of people. They may include: an architect who designs the building and plantingarea; a landscape architect who designs the planting andselects the plants; a grower or distributor who conditionsand supplies the plants; a gardener who does the planting; and a maintenance man who cares for the plants.

For a planting to be successful, all jobs must be donecorrectly. If one link in the chain fails, the planting fails.With so many interrelated factors needed to assure successit is not surprising that foliage plant specialists who perform or supervise all these functions are handling moreand more of the foliage plant business. Many of thesespecialists started out as growers.

Let's look at some of the steps necesary for a successfulplanting. Planters must be deep enough to hold plants ofthe proper size. It takes a really "green thumb" to plantand maintain a seven-foot plant in a six-inch-deep container. It is better to have the planters too deep than twoshallow. A 36-inch depth will hold any of the large plantsnow commonly used and even ground covers need a 10-inch-deep planter. If the planter is not drained, thereshould be room for excess water below the root area.Light intensity in the planting area should be at least 50foot-candles and preferably higher. Natural light is easiest but rarely available. Research conducted at Rutgers,under the direction of Dr. 0. W. Davidson, has established the light requirements of many foliage plants. Anumber of plants will survive on 50-foot-candles and lowerintensities based on 16 hours of light in each 24 hourperiod. This is about the light you would have in a welllit work area. The light source can be either fluorescentor incandescent. The sheen of the foliage of some plantsis improved if some incandescent light is used. Unless alarger area is lighted, it is difficult to use fluorescent tubes.Flood and spot lights can be used to accentuate plants aswell as supply light. Heat can be a problem if lights areclose to the foliage.

Foliage plants can be planted in soil in a large planter.However, keeping them in their pots and packing peatmoss between the pots has many important advantages.Plants planted in this way are easy to water and they canbe kept relatively dry. The entire planter is light. Largeplanters filled with soil are extremely heavy and can bea structural problem. When plants are in individual pots,the entire planter is easy to rearrange. Should one plantbecome unattractive, it can be removed and the remainingplants moved closer together. As the plants get older,some grow more than others, and by shifting and movingsome plants, the whole planter can be kept attractive fora long period.

When a plant is attacked by insects, it can be easily removed for treatment and easily replaced after treatment.Since plants grow toward light, it is an advantage to beable to rotate individual pots.

After the metal has been protected with a coat of lacquer, sealer, or horticultural asphalt, cover the bottom ofthe planter with a Vo-inch layer of gravel or pebbles. Thiswill prevent larger pots from getting too wet when plantsare overwatered.

In order to make an attractive arrangement, use plantsof various sizes. Smaller pots must be raised so that thetops of all pots are level. Any ceramic material can be usedto elevate the smaller plants. Inverted flower pots orsaucers of various sizes are ideal. Plants will be held in

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