A deal has been brokered to bring together two flower giants in a reshuffle that will affect supermarket supply and may boost home-grown supplies.
Dutch Flower Group (DFG) and the Mavuno Network have announced that they have entered into a “strategic alliance”, which will see DFG assume responsibility for Bloom, Fast Track Flowers, Airflo and the business of World Flowers from 1 May 2011.
The Mavuno Network, represented by Fast Track and World Flowers in the UK, will enhance its focus on production, NPD and joint marketing with DFG.
DFG companies are responsible for a turnover of €785 million with 1,500 employees in 2010 and export to more than 60 markets worldwide. The alliance is hoped to grow DFG to a turnover of €950m in 2011.
The Mavuno Network is a group of companies, stretching back more than 30 years in producing, sourcing, supplying and trading in fresh-cut flowers.
It has seven companies, employing more than 6,000 staff working or trading in 60 markets worldwide.
DFG hopes it will be able to strengthen the position of its procurement base in Africa substantially, and more specifically in Kenya with Mavuno Network’s associated growers. The aim is to help DFG maintain a prominent place among global players, with procurement offices in all the main production locations in addition to Kenya.
The business of World Flowers, which has been supplying UK supermarkets, will be redirected to the specialised DFG retail companies.
Fast Track Flowers will expand its localised focus and aim for sourcing and marketing more UK-grown product.
Bloom will be located in the DFG facilities in Aalsmeer and will focus on packed-at-source product, while Airflo will enable DFG to attain a higher level of control in logistics as an independent freight forwarder.
The companies said in a joint statement: “The philosophy of DFG is to maintain close and transparent partnerships and in this regard, DFG is extremely proud of the partnership with the Mavuno Network and that Mavuno Network have chosen them to become their partner in the development of their business in the future.”
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