The UK marketplace is fairly unique when it comes to food, with a few all-powerful customers pulling the strings of a multi-layered, jammed-packed supply chain.
Now, supermarkets have undeniably targeted the flower sector as an area for domination and they’re really starting to get a feel for the job.
The floral market has changed almost beyond recognition in the last 10 years, with the multiples growing their share of cut flower bouquet sales from 35 per cent right up to 70 per cent. “The UK flower market is unlike others in the way that seven out of 10 bunches of flowers are now sold via the supermarkets, compared to one out of seven in France or Germany,” says Jan-Paul Rijke, commercial director of Dutch supplier Superflora, which supplies UK supermarkets and is part of the Dutch Flower Group.
“The Tescos of this world are powerful, but this is where the UK is unique. It is still a very competitive and massive market, and you would need millions of pounds of investment to become part of it.”
And massive is the word. According to Kantar Worldpanel GiftTrak figures to March, the amount spent on cut flowers as gifts in the UK was £750 million in the last year, and spend on pot plants given as gifts was £95m. There has been a decline in the total number of flowers and pot plants given as gifts, but the market value is actually in growth. People are either opting for more expensive gifts, or there is a price premium to pay, which explains the increase in value.
Of course, with competition comes efficiency and control, as well as market concentration. The high street has been left lean and mean, with independent florists either thriving or dying, but out of this the industry has produced a pleasing offshoot in the form of the floral internet business, with Interflora leading the way.
Once again, imitation is the highest form of flattery, and no sooner had floral internet companies popped up, than Marks & Spencer, Tesco and Sainsbury’s followed suit.
But that’s not considering flowers for corporate and celebratory events -something that supermarkets seem to have little interest in. The wedding industry, in particular, is huge and companies like London-based Simon J Lycett Ltd are thriving by creating one-off designs for clients and events all over the world. Recently involved in the floral displays for the royal wedding celebrations, owner Simon Lycett admits that the flower business in the UK is tricky at the moment.
“We are lucky, as for us it is thriving, although we have still had to make concessions to clients wanting ‘a deal’ and budgets are reducing as our overheads and costs are increasing,” he shares. “Supermarkets selling flowers is a problem for any high street retailer, as they are becoming a one-stop shop and pushing the florist off the high street. However, I think florists need to accept the challenges and produce an added value product that the supermarkets cannot compete with.
“Adding value by creating bespoke orders is one way, with personal service being another. A bunch made for you, before your very eyes, to fit your vase, in your colours, and containing just what you want, is much more appealing and worth more money than one of many similar floral bunches, identically presented in a vast bin in a draughty supermarket doorway, halfway between the slabs of special offer lager and the kidswear. We are lucky that our event work is varied. We just need to keep ahead of the game and keep setting trends.”
Colombia’s promotional body for exports Proexport’s UK trade officer, Beatriz Chaves, believes that the flower industry in the UK has “taken a leap” over the last couple of years. “Floristry is seen as a serious work choice - our florists are better trained and more informed than ever before,” says Chaves. “And the quality and variety of flowers that are available to us are better than ever before. Because of the economic downturn, many florists - both large and small - have been struggling to keep their heads above water. As a consequence, businesses have analysed their buying procedure. Careful buying and quality are extremely important in the current climate.”
Back to the multiples, and Rijke believes that the marketplace is standing still when it comes to innovation. “The main customers in the UK want spray carnations, chrysanthemums and roses, and to an extent lilies,” he says. “The multiples want these year round, as they follow what the market indicates and give their customers what they want.”
But the current trend that has been increasing over a number of years is for UK-grown seasonal flowers, says Fran Bailey, owner of The Fresh Flower Company, which consists of “a team of highly skilled designers whose imaginative approach ensures the creation of unique and stunning designs for weddings, private parties, offices and corporate events” in London.
“The public does try to follow the seasonal patterns, with information and promotion of seasonal produce from the florist,” she explains. “In the late spring or early summer, English sweetpeas, peonies, Sweet William, stocks and delphinium are very popular.
Alliums and hydrangea also continue to be popular throughout the summer and autumn.
Amaryllis and roses remain favourites in the winter, whereas rannunculus, anemones and tulips are the best-selling spring flowers.
“In the spring and summer, 30-40 per cent of what I source is grown in the UK. The highest volume comes from the Netherlands at approximately 70 per cent and the rest is made up of flowers from Colombia, Italy and Israel.”
Lycett agrees that consumers are more concerned with where the flowers are coming from. He says: “Customers, especially corporate ones, are starting to require much more accountability, wanting to know from where flower and plant material is sourced. Flower miles are also a concern, as are ethical practices in their production.”
Superflora supplies the UK market with mostly Dutch-grown flowers, with 50 per cent of what it supplies to the UK coming from the Netherlands, seven to eight per cent sourced from the UK and the remainder from Colombia and Kenya.
“We source a good deal of carnations and chrysanthemums from Colombia, especially in the winter when Dutch flowers become very expensive.”
Colombia remains an important source for year-round supply throughout the flower industry and is the second largest flower exporter in the world, after the Netherlands. “Given Colombia’s climate diversity, we have a large variety of excellent quality flowers of intense colours, thanks to our lighting conditions,” says Chaves.
With continued year-round production, Colombian flower crops are scheduled around important international holidays and therefore its highest production season is the first half of the year, for Valentine’s Day, as well as Mother’s Day and International Woman’s Day.
But the Colombian flower industry has seen challenges come out of the adjustments that have been made in the sector. “The most important change has to do with enhanced productivity and price handling to minimise the risks posed by external factors such as the exchange rate,” says Chaves. “The goal is to improve competitiveness without affecting the jobs generated by the sector. Therefore, it is also essential to innovate with products and explore new markets, which the sector is already working on, to the extent that the export industry is already on an upward trend.”
The most important Colombian flowers for the UK market are roses, carnations, mini-carnations, astromelias, pompoms, hydrangeas, foliage and tropical flowers, as well as more than 3,000 species of orchids.
“Carnations, roses, astromelias and pompoms are the flowers we export most to the UK,” says Chaves. “According to the Colombian Ministry of Trade, Industry and Tourism’s figures, flower exports between Colombia and the UK between 2009 and 2010 went from $38m to $51m dollars, which represented a growth of 33 per cent.
“There have been large cuts in the demand for flowers in the corporate entertainment and corporate contract sectors, which has resulted in a number of businesses going into liquidation. The retail sector is slightly stronger and I think the promotion of cut flowers as a lifestyle product has helped.”
Chaves also believes the trend for UK grown flowers will continue. “This can be achieved during the spring and summer months when the florist can offer and promote English cut flowers,” she says. “However, the customer demands a wide choice of flowers throughout the year and so we must continue to source flowers from all over the globe.”
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