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February 18, 2008

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GROWING YOUR BUSINESS TOGETHER





contents

Earth-Friendly Flowers Bloom at Hatcher Florist
Toronto shop selling bouquets from socially responsible farms a small but blossoming segment of the flower market

Valentine's Day Test Orders
How did the big online florists do this year

ABC Affiliate Cautions Consumers Against Fictitious Listings
This TV report highlighted the deceptive phone listings issues and left the florist out on top

National Media Promote Flowers' Positive Effects
The positive effects of flowers have been making news around the country in newspapers, magazines and Web sites this month

U.S. Considers Extending Duty-Free Flowers
Expiring at the end of this month, The Andean Trade Preference Act extends duty-free status for another two-plus years

Member Alerts
Requirements of product entry to prevent the spread of Sudden Oak

 




earth-friendly flowers bloom at Hatcher florist

Toronto shop selling bouquets from socially responsible farms a small but blossoming segment of the flower market

Bob and Doug Hatcher aren't your typical petal pushers.

Planted in a North York flower shop that's remarkably been in the family for nearly a century, they care enough to dig up the floral facts on exactly where your pretty Valentine's Day roses and bouquets came from and the conditions in which they were grown.

On top of that they're one of the few known retailers in the Toronto area – and one of only about a dozen in Ontario – that offer certified, Earth-friendly flowers on request at the charming Hatcher Florist shop on Yonge St. near Finch Ave.

"More and more people are searching out these eco-products," said Doug Hatcher, noting it's a small but blossoming segment of the business that's been in his family since 1909.

"This is our small way of helping the planet. We're trying to change the world one flower at a time," brother Bob added.

It's not something most people think about when they buy posies for their sweetheart at this time of year, but where do all the flowers in North America's annual $8 billion floral market come from?

Particularly given the frosty February temperatures, the industry is forced to look south to satisfy Canadian consumers' ever-growing flower fix.

The vast majority of the roses and cut flowers that will be purchased for cupid's big day actually come from Ecuador and Colombia, where some farms over the years have been renowned for their use of pesticides harmful to both the environment and workers. Others have also grabbed global attention for unfair working conditions in this low-paying field, which employs mostly women and even children.

It's a thorny situation for environmentally conscious consumers in the frozen north since Canada's total flower market is made up almost entirely of imports, save for the tiny fraction grown in greenhouses or in better seasonal conditions in Ontario and B.C.

But not to worry; in the interest of all things green, the Hatchers and a budding number of Canadian florists have joined forces with a Montreal-based group called Sierra Flower Trading, the biggest flower distributor in Eastern Canada.

Just over one-third of Sierra's business is in providing flowers out of its Quebec and Mississauga outlets, flowers it monitors and gets shipped in from socially responsible and sustainable farms in South America and California.

The ultimate in flower power, the seven-year-old program supports and markets – and certifies with a special label on your delivery – the sale of flowers from farms that have adopted greener production methods and that adhere to high safety standards and acceptable conditions for workers.

"Retailers should wake up and make a difference by offering certified flowers. Producers and florists are just waiting for more customers to let them know it's important," says Sierra president and founder Tom Leckman.

Remarkably, the price difference is "negligible" for the consumer, who pays roughly 10 per cent more on a regular bouquet or a dozen roses, he notes.

Hatcher Florist just sold 100 of the Sierra roses to the U of T chapter of Engineers Without Borders. The students will sell them on campus for Valentine's Day to raise funds for the group, which works toward improving the quality of life in developing countries.

And in the ecological spirit of things, the Hatchers will be handing out a free Sierra "green" flower to people who drop by their North York store on Earth Day, April 22.

The flower industry has been under intense scrutiny over the last 15 years as stories have emerged about everything from serious health problems among workers exposed to toxic chemicals to the exploitation of children, work weeks of more than 60 hours, pregnant women being fired and the destruction of surrounding eco-systems. And for a time it had an impact on global sales.

Some producers in Colombia and Ecuador made changes in recent years in an effort to clean up their act, and workers are generally treated "much better" than they were 10 years ago, said Arman Patel, executive director of Flowers Canada Retail, which represents about 1,000 Canadian retailers and wholesalers.

"You hear about the odd farm's conditions that aren't right, but by and large, the governments of those countries realized they had to intervene and make changes," he said.

Still, the industry average of chemical use on flower farms in South America is about 100 kilograms per hectare, while farms certified by Sierra use about 10 kilograms of non-toxic sprays.

Otherwise, Canadian wholesalers buy in bulk from South America, and retailers buy from wholesalers, so "you're not sure exactly what farm you're dealing with," Patel said.

Surprisingly, grocery stores and big box chains that sell flowers still only make up less than 15 per cent of total sales in Canada, but these corporate heavyweights could make a big statement if they jumped on the eco-friendly flower bandwagon, Leckman argued.

Besides using fewer pesticides, herbicides and fungicides to grow your flowers, Sierra only certifies flowers from farms that recycle, compost and have better waste elimination on site. Leckman said they also work with farmers to provide a better quality of life for workers, on-the-job safety and guaranteed pay.

"For instance, the greenhouses in South America are all covered in plastic. We're talking 100 hectares in some cases. That has to be replaced every five years so we ensure that it's recycled," he noted.

The end product dropped off by the delivery person also benefits from these strict monitoring processes, resulting in longer lasting and higher quality flowers landing in your vase, Leckman said.

"Only the best farms can get you consistently good quality year after year," Patel agreed.

The 18 farms in Ecuador, Colombia and the U.S. that have the Sierra seal of approval are bound by strict grading and quality control criteria established by international organizations, and independent inspectors regularly check growing operations.

About 75 per cent of all cut flowers in Canada year-round come from Colombia and Ecuador and another 10 per cent from Holland while the remainder come from Kenya, California and Ontario and B.C., according to Flowers Canada Retail.

Canada's flower-growing industry cannot be as competitive since South America's labour and production costs are far lower and the industry there more established, Patel said.

But the strong Canadian dollar has meant Ontario and B.C. flower growers are exporting more less to the U.S. than ever before, he said.

"Randomly ask 10 florists, `Do you specifically look for Ontario flowers?' and if they didn't say `I don't care' I'd be surprised," Patel joked.

Eco Flora is another Canadian online floral retailer based in Toronto that specializes in organic and so-called fair-trade flowers.

And an increasing number of green distributors such as Sierra have been popping up over the past few years in Europe and in the U.S., namely in California, Miami and New Jersey.

In the spirit of Valentine's Day, Leckman suggests consumers "give the Earth a hug" by asking for Earth-friendly posies.

Source: Toronto Star

Flowers Canada Retail Note: The article states “the strong Canadian dollar has meant [flower growers] are exporting more to the U.S. than ever before.” This is an error by the Toronto Star. The strong Canadian dollar has meant less imports to the U.S.

 

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valentine's day test orders

Valentine's Day means test order season for journalists, when they put on their consumer-reporting hat and try out different channels for buying flowers. If you don't already subscribe to the "every order is the most important order" philosophy, here is a good reason why you should start, especially before the next test order season — when Mother's Day approaches.

The Today Show put five online services and two local New York City florists to the test in its segment "Is What You See What You Get - When You Order Flowers Online," which aired Feb. 12. See "Video: Online flowers: Do they deliver?"

Vera Gibbons, CNBC reporter, first compared 1-800-Flowers.com, Teleflora, FTD, Proflowers.com and FromYouFlowers.com to its pictures online. She says 1-800-Flowers and Teleflora fared well with "what you see is what you got." While the FTD bouquet had more filler than in the picture, Gibbons explains that the consumer can expect some variation depending on the florist fulfilling the order.

As for Proflowers, the fact that the flowers arrive in a box takes away "some wow factor," Gibbons acknowledges, adding that Proflowers.com overall is a "reputable" floral provider. The arrangement by Fromyourflorist.com had shorter stemmed roses than the others and was missing a box of chocolates.

"The quality of your flowers is really only going to be as good as the florist fulfilling that particular order," Gibbons reiterates.

Gibbons also went to two local NYC florists, FreshFlowers.com and Zezé to compare to the online order takers and was pleased with both orders.

The lesson learned, Gibbons concludes, is that even though ordering online is convenient and can be done up to the last minute, it's good to have a relationship with a local florist. "It's not a guessing game, you know what you're getting into," she says. "The overall experience might be better and in many cases you do get more bang for your buck."

Another recent test order story we heard about: "Sending Flowers: Do You Get Your Money's Worth?," which ran on WFMY News in North Carolina.

The report was the result of collaboration with four other television stations in Grand Rapids, Mich.; Washington, D.C.; Cleveland; and Knoxville, Tenn. They each used what they described as a "well-known order taker like 1-800-Flowers, FTD, Teleflora and Proflowers.com" and sent each other a total of 20 arrangements costing at least $50 a piece.

Though a few passed the test, many of the arrangements, according to the reporters, didn't come close to matching and seemed significantly smaller than what was ordered, and one station complained of "wilted" flowers.

After calling in a professional florist to analyze the arrangements, the reporters came to the following conclusion: "So this is what happens if you use an order taker instead of a local florist," WFMY says. "First you'll have to take out several of the major flowers for their delivery fees. Then, you'll need to take out more flowers for their service fees. And if you want it delivered in the morning, you might as well take out a few more flowers. What you're left with is a shell of the bouquet."

 

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abc affiliate cautions consumers against fictitious listings

The ABC affiliate in Phoenix aired a report on Feb. 7 that explained the deceptive phone listings issue and encouraged consumers to know who they are ordering their Valentine's Day flowers from.

Brian Vetter, AIFD, PFCI, AZMF, president of the Arizona State Florists Association, contacted ABC 15 in January to do the story. "In an effort to try to get the public to understand what is going on when they look someone up in the phone directory, I felt the news media 'investigative' team would be a good way to go," Vetter told E-brief editors. Tony Medlock, AIFD, PFCI, AZMF of PJ's Flowers in Phoenix, also provided background, including phone numbers that are not local, flower care tips and information on Arizona's law banning deceptive phone listings, which was passed in 1999. SAF also e-mailed the station and offered to provide information.

During the segment, "Consumer Alert: Misleading ads for local florists," Vetter describes how the out-of-state telemarketing and online firms pose as local florists and mislead consumers into feeling they are ordering flowers from a local florist when, in fact they are being call-remote forwarded (or: when, in fact, their call is being forwarded) to another state. "You are taking an extra step," Vetter said in the segment. "You are also going through a middle man. So, you are spending more money."

The ABC 15 Investigative Team illustrates the deception by comparing the experience of ordering flowers from a florist located in Phoenix, a company based in Utah using a Phoenix area code, and a company advertising on an Internet directory with a Valley address that isn't a florist shop. The local florist came out on top, and left viewers with this message: "So, before you fork over your hard earned cash on Valentine's Day, know who you are dealing with."'

 

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national media promote flowers' positive effects

The positive effects of flowers have been making news around the country in newspapers, magazines and Web sites this month.

First magazine and NJ.com cite The Home Ecology /Flower Study conducted at Harvard University, which shows people are more likely to feel happier and have more enthusiasm and energy at work when flowers are in their home living environments.

First advises readers to "Send energy soaring with sunshiny blooms" and reports, "According to a Harvard University study, simply being around flowers can restore your usual pep." This article generated 4.6 million consumer impressions.

NJ.com encourages its readers to place flowers in the kitchen for a "lift" in the morning, in its article "Ideas for kitchen flower arrangements."

"Research shows that the sight of fresh flowers can inspire an emotional boost that just might last all day," NJ.com writes. "When you've just stumbled out of bed and are still rubbing the sleep out of your eyes, you might benefit from a floral stimulant."

The Indianapolis Star told its male readers "Flowers are your friend, men" around Valentine's Day, advising them that "women are positively affected when given flowers, responding with smiles and a long-term sense of well-being, according to scientific research a few years ago at Rutgers University."

 

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u.s. considers extending duty-free flowers from Columbia and Ecuador

Floral importers are closer to having another two-plus years of duty-free flowers. A bill extending duty-free status through September 30, 2010, for flowers exported to the United States from four Andean (incl. Ecuador, Columbia) nations has been introduced in the House of Representatives.

H.R. 5264, sponsored by House Ways and Means Committee Chairman Charles Rangel (D-15-NY), extends benefits for eligible products under The Andean Trade Preference Act (ATPA). The ATPA, which provides duty-free entry for flowers coming from Colombia, Ecuador, Bolivia and Peru, is set to expire on February 29. Rep. Rangel's bill extends those preferences for all four countries.

Without an extension, U.S. importers of record would begin paying duties on flowers from those four countries on March 1, 2008.

Both Colombia and Peru have negotiated free trade agreements (FTA's) with the United States. Once fully ratified and implemented, those FTA's will provide permanent duty-free status for flowers exported to the U.S from those two nations. Currently, duty-free status must be extended periodically under the rules and procedures outlined in the ATPA.

FTA's have not been negotiated with Ecuador or Bolivia due to concerns regarding the protection of U.S. investments in those two countries.

This agreement ultimately affects many Canadian wholesalers and importers who rely on importing flowers through the United States.

 

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Member Alerts

NATIONAL
REQUIREMENTS FOR PRODUCT ENTRY TO PREVENT THE SPREAD OF SUDDEN OAK (PHYTOPHTHORA RAMORUM)
Importer, brokers and wholesalers are looking for clarification on the requirements of product entry to prevent the spread of Sudden Oak.

This directive contains the phytosanitary requirements for the importation of propagative and non-propagative host materials of a serious pathogen, Phytophthora ramorum (the causal organism of Sudden Oak Death).

Canadian Regulation: D-01-01 Phytosanitary Requirements to prevent entry of Phytophthera ramorum

This list provides notification that Appendix 01 "List of Plant Genera Regulated for Phytophthora ramorum (Sudden Oak Death)" of Directive D-01-01 "Phytosanitary Requirements to Prevent the Entry of Phytophthora ramorum" has been revised and is available on the web at: http://www.inspection.gc.ca/english/plaveg/protect/dir/sodspe.shtml

Please note: Species on the regulated list from quarantined areas will be prohibited for importation into Canada (both propagative and non-propagative materials, including some cut flowers).

If you have any questions or concerns, please contact CFIA 1-800-442-2342 or Flowers Canada Retail at 1-800-447-5147.

 

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