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INVESTOR CONFERENCE September2015

INVESTOR CONFERENCE September2015 - 1-800-Flowers/media/Files/O/One-800-Flowers/... · Operations : Production Overview 5 • Bakery, Confectionary, Fruit Packing and Assembly operations

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I N V E S TO R C O N F E R E N C E S e p t e m b e r 2 0 1 5

Operations

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Operations : Campus Overview

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• ~ 50 Acre Campus in Medford, OR + 52 Acre Campus in Hebron, OH

• ~ 1.7 MM sq. ft. under roof including Hebron facility

• ~ 58,400 sq. ft. Bakery & Candy Kitchen

• ~ 364,000 sq. ft. Fruit Packing and Assembly

• ~ 140,000 sq. ft. Distribution & Call Center space in Hebron Facility

• ~ 636,000 sq. ft. Warehouse/Cold Storage

Operations : Orchard Overview

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• Orchards = 3,300 acres

• Farm ~ 1,700 acres; additional 300 acres under development

• ~ 50 acres of peaches

• 25 “named” orchards

• Orchards size range from 20 acres to >400 acres

• Harvest begins 3rd week of August ( +/-)

• Forecast > 16,000 tons of pears

• Pears sorted and packed through the 3rd week in December

Operations : Production Overview

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• Bakery, Confectionary, Fruit Packing and Assembly operations.

• Work force expands from 200 to 1600 during peak holiday

• Produce approximately 80% of our gift components

• Bakery & Candy Kitchen begins ramp up in March

• Moose Munch runs 7 days/week March-Sept. producing ~4.5 million lbs.

• Volumes for peak holiday period in Medford – (July-December)• 1.5 million flat fruit gifts

• 800,000 Banquet gifts

• 1.6 million units for Wholesale and Stores channel

• 450,000 Baskets

• 2.5 million Towers and Miscellaneous Assembly gifts

• 1.3 million gifts at our Hebron Facility

Distribution

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Distribution

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• Six facilities, representing ~ 2M square feet (Two owned; others operated by 3PL partners)

• Forward deploy >5M packages to reduce cycle time from order to delivery and reduce delivery expense.

• Zone skipping strategy: drop into >30 hubs nationally.

• Ship >9M packages annually across all channels

• >340K DM shipments processed on peak day

• 92% of DM shipments, shipped ground last peak season

Contact Center

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• Customer Contact Center Network consists of three facilities; two owned and one leased

• ~1500 seat capacity

• 25% of orders handled through the Contact Center during peak

• >2,300 reps during peak

• >1.4M calls annually; peak day = ~50k

Merchandising

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Merchandising

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• >750 items for holiday season; Prices range from $5.99 to $499.99.

• Largest categories: Packaged Gifts and Fruit

• Growth opportunity categories: Bakery, Chocolate, Specialty Food

• Top item: Royal Riviera pears; >500K units each year.

• Exclusive partnership with the Cheesecake Factory (shipped >40k units in FY15)

• Key initiatives for FY16: • new club launches • new gourmet gift collection • revitalize Wolferman’s brand• increase self consumption

Procurement

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Procurement

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• During December sell through 91% of DM finished gift inventory.

• Feb. production start for build to support Christmas selling season.

• Gourmet Food Brands annual purchases =

• ~ 2 million lbs. of un-popped popcorn

• > 2 million lbs. of butter

• > 11 million lbs. of chocolate

• > 22 million feet of ribbon

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Marketing

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Digital Marketing: FY 2015

• 580M Emails Delivered

• 113M Paid Search Ads Viewed

• 30M Programmatic Media Display Banners Viewed

• 1.5M Clicks Generated by Affiliate Partners

• 3M Organic Search Visits

• 500K Social Followers

Digital Marketing

Website Marketing

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Multi-device tailored experiences• ~5.0M Unique sessions • 2,500 Unique products available for Fall-Holiday season• ~4.0M Products sold online• State-of-the-art brand specific features and functions• Highest satisfaction and loyalty scores in the industry*

*Source: Foresee Results Data FY 2015 – Food and drink industry benchmark

CRM/Print Marketing

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• 57 Catalogs: 32 Harry & David; 17 Wolferman’s; 8 Stock Yards

• Circulation:• Total Catalog >58MM• Total Pages >4MM

• 22MM Unique Customers Contacted

• 57MM impressions in Alternate Media

Brand Creative

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BRAND JOURNAL

VOLUM E 1 ISSUE 1 Spring ’15

A CELEBRATION OF TH E H ARRY & DAVID LI FESTYLE

Brand Creative

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CATALOGUECATALOGUE

WEBSITEWEBSITE

DIGITALDIGITAL

EMAILEMAIL

COLLATERALCOLLATERAL

RETAILRETAIL

• Brand Positioning

• Total Value Proposition

• Data Based Insights

• Creative Testing

• Brand Identity

• Brand Voice & Image