1-800-FLOWERS.COM, Inc. and its subsidiaries is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships.
The company’s e-commerce business platform features its all-star family of brands, including: 1-800-Flowers.com, 1-800-Baskets.com, Cheryl’s Cookies, Harry & David, PersonalizationMall.com, Shari’s Berries, FruitBouquets.com, Things Remembered, Moose Munch, The Popcorn Factory, Wolferman’s Bakery, Vital Choice, Scharf...
1-800-FLOWERS.COM, Inc. and its subsidiaries is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships.
The company’s e-commerce business platform features its all-star family of brands, including: 1-800-Flowers.com, 1-800-Baskets.com, Cheryl’s Cookies, Harry & David, PersonalizationMall.com, Shari’s Berries, FruitBouquets.com, Things Remembered, Moose Munch, The Popcorn Factory, Wolferman’s Bakery, Vital Choice, Scharffen Berger, and Simply Chocolate. Through the Celebrations Passport loyalty program, which provides members with free standard shipping and no service charge on eligible products across the company’s portfolio of brands, the company strives to deepen relationships with customers. The company also operates BloomNet, an international floral and gift industry service provider offering a broad range of products and services designed to help its members grow their businesses profitably; Napco, a resource for floral gifts and seasonal decor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; Alice’s Table, a lifestyle business offering fully digital on demand floral, culinary and other experiences to guests across the country; and Card Isle, an e-commerce greeting card service.
Strategy
The company will continue to build on the trusted relationships with its customers by providing them with ease of access, tasteful and appropriate gifts, and superior service.
As part of the company’s continuing effort to serve the thoughtful gifting needs of its customers, and leverage its business platform, the company continues to execute its vision to build a ‘Celebratory Ecosystem’, including a collection of premium gifting brands, and an increasing suite of products and services designed to help the company’s customers deliver smiles to the important people in their lives.
The platform that the company has built allows it to expand rapidly into new product categories using a ‘marketplace’ concept, providing its customers with a wider selection of solutions to help them express, connect and celebrate for all occasions and recipients – including themselves.
Products and Service Offerings
The company offers a wide range of products including fresh-cut flowers, floral and fruit arrangements and plants, gifts, greeting cards, personalized products, dipped berries, popcorn, gourmet foods and gift baskets, cookies, chocolates, candy, wine, and gift-quality fruit. In order to maximize sales opportunities, products are not exclusive to certain brands and may be sold across business categories. The company’s differentiated and value-added product offerings create the opportunity to have a relationship with customers who purchase items not only for gift-giving occasions but also for everyday consumption. The company’s product development team works closely with its production team to select and design its floral, gourmet foods and gift baskets, as well as other gift-related products that accommodate the company’s customers’ needs to celebrate a special occasion or convey a sentiment. As part of this continuing effort, the company intends to continue to develop differentiated products and signature collections that customers have embraced and come to expect.
Flowers, Plants, and Personalized Gifts: The company’s flagship 1-800-Flowers.com brand offers fresh-cut flowers and floral and fruit arrangements for all occasions and holidays, available for same-day delivery. The company provides its customers with a curated choice of florist designed products, including traditional floral and gift offerings, and the company’s line of fruit arrangements, under the Fruit Bouquets brand, and flowers delivered fresh from the farm. The company also offers a wide variety of popular plants to brighten the home and/or office, and accent gardens and landscapes. With the acquisition of Alice’s Table, the company also provides lifestyle offerings, including fully digital on demand floral, culinary and other experiences to guests across the country. In addition, through its PersonalizationMall brand, the company offers a wide assortment of products using sublimation, embroidery, digital printing, engraving, and sandblasting to provide a unique, personalized experience to its customers. The company expanded its offering of personalized products with the acquisition of the Things Remembered brand, a complete online gifting and personalization destination renowned for its men’s and women’s jewelry, drinkware, home decor, business gifts and awards, and wedding essentials.
Gourmet Foods & Gift Baskets: Harry & David is a vertically integrated, multi-channel specialty retailer and producer of branded premium gift-quality fruit, food products, land and sea-based proteins, and gifts marketed under the Harry & David, Wolferman’s Bakery, Vital Choice, Cushman’s, Moose Munch and Scharffen Berger brands. The company manufactures premium cookies and baked gift items under the Cheryl’s Cookies and Mrs. Beasley’s brands, which are delivered in beautiful and innovative gift boxes and containers, providing customers with a variety of assortments from which to choose. The Popcorn Factory brand pops premium popcorn and specialty snack products. The 1-800-BASKETS.COM brand features a collection of gourmet gift baskets and related products confected by DesignPac, as well as through third parties. Simply Chocolate offers artisan chocolates and confections. Many of the company’s gourmet products are packaged in seasonal, occasion specific or decorative tins, fitting the ‘giftable’ requirement of individual customers, while also adding the capability to customize the tins with corporate logos and other personalized features for the company’s corporate customers’ gifting needs. On July 1, 2024, the company completed its acquisition of Scharffen Berger, a manufacturer of giftable premium chocolate and specialty treats.
BloomNet: The company’s BloomNet business provides its members with products and services, including: settlement processing, consisting of the settlement of orders between referring florists (including the 1-800-Flowers.com brand) and fulfilling florists, advertising, in the form of member directories, including the industry’s first on-line directory, access services, by which BloomNet florists are able to refer and fulfill orders, using Bloomlink, the company’s proprietary Internet-based system, other products and services, including web hosting, marketing, designer education and point of sale systems, and wholesale products, which consist of branded and non-branded floral supplies, enabling member florists to reduce their costs through 1-800-Flowers.com purchasing leverage, while also ensuring that member florists will be able to fulfill 1-800-Flowers.com brand orders based on recipe specifications. While maintaining industry-high quality standards for its 1-800-Flowers.com brand customers, the company offers florists a compelling value proposition, offering products and services that its florists need to grow their business and to enhance profitability. On April 3, 2024, the company completed its acquisition of Card Isle, an e-commerce greeting card service, expanding the company’s presence in the greeting card category across its brand portfolio.
Marketing and Promotion
The company’s marketing and promotional strategy is designed to strengthen the 1-800-FLOWERS.COM brands, engage with its customers, increase customer acquisition, build customer loyalty, encourage repeat purchases and drive long-term growth. The company’s goal is to create a celebratory ecosystem that makes its brands synonymous with thoughtful gifting and to help its customers ‘send smiles’ every day. The company intends to invest in its brands and acquire new customers through the use of selective on and off-line media, direct marketing, public relations, social media and strategic relationships, while cost-effectively capitalizing on the company’s large and loyal customer base. The company’s focus is to create marketing messaging that is more relevant to the customer, to engage with its customers in a two-way dialog and to focus on the customer experience. It plans to improve customer purchase frequency via product exposure through its multi-brand portal, and Celebrations Passport loyalty program, as well as continually investing and innovating how and where it engages with its customers.
The company has also expanded its presence on both local and national platforms, with multiple inclusions on Good Morning America, the Today Show, Telemundo - Hoy Dia!, and more.
Fulfillment and Manufacturing Operations
The company’s customers primarily place their orders either online or over the telephone. The company’s hybrid fulfillment system, which enables the company to offer same-day, next-day and any-day delivery, combines the use of BloomNet (includes independent florists operating retail flower shops and franchise florist shops) with company distribution centers and vendors who ship directly to the company’s customers. The company’s products are backed by a 100% smile guarantee, and its business is not dependent on any single third-party supplier.
Fulfillment and manufacturing of products is as follows:
Flowers, Plants, and Personalized Gifts: A majority of the company’s floral orders are fulfilled by one of the company’s BloomNet members, allowing it to deliver its floral and fruit bouquet products on a same-day or next-day basis to ensure freshness and to meet its customers’ need for immediate gifting. In addition to these florist-designed products, the company also offers fresh cut floral arrangements in a wide assortment of combinations, themes and designer bouquets and collections through its direct ship program, fresh from the farm. Also, the company offers a broad selection of personalized gifts and keepsakes that are manufactured utilizing same-day/next-day capabilities, and distributed from its Bolingbrook, IL facility.
Gourmet Foods & Gift Baskets: The company offers a wide array of premium brand signature baked products, chocolate, confections, gift baskets, gourmet popcorn, dipped berries, giftable fruit towers and baskets, and related products through its Gourmet Foods & Gift Baskets’ brands. The company’s Cheryl’s cookies and baked gifts are manufactured primarily in its baking facility in Westerville, Ohio, while The Popcorn Factory and Moose Munch premium snack products are popped in Medford, Oregon and Lake Forest, Illinois. Harry & David products are grown and manufactured primarily from its facilities in Medford, Oregon, supplemented by specialty products that are sourced across the U.S. and the world. Scharffen Berger products are manufactured in Ashland, Oregon. Gift basket confection and fulfillment for both wholesale and 1-800-Baskets.com is handled by DesignPac, located in Melrose Park, Illinois. The company’s products are distributed from a combination of company-owned and leased distribution facilities across the country, which are shared by its brands in order to reduce both transit time to customer and overall logistics costs. Dipped berries and other specialty treats for the company’s Shari’s Berries brand are manufactured and fulfilled through its network of drop ship vendors.
Seasonality
Due to the seasonal nature of the company’s business, and its continued expansion into non-floral products, the Thanksgiving through Christmas holiday season, which falls within the company’s second fiscal quarter, historically generated over 40% of its annual revenues, and all of its earnings. Due to the number of major floral gifting occasions, including Mother’s Day, Valentine’s Day, Easter and Administrative Professionals Week, revenues also rise during the company’s fiscal third and fourth quarters in comparison to its fiscal first quarter. During fiscal 2024, the company’s fiscal second quarter revenues represented approximately 45% of annual revenues, while its first, third and fourth quarters generated 14%, 21%, and 20% of annual revenues, respectively.
In preparation for the company’s second quarter holiday season, it significantly increases its inventories. This seasonal build has traditionally been financed by cash flows from operations, supplemented by a bank line of credit, which peaks in November. The company has historically repaid all revolving bank lines of credit with cash generated from operations, prior to the end of the company’s fiscal second quarter (year ended June 30, 2024).
Intellectual Property
The company regards its service marks, trademarks, trade secrets, domain names and similar intellectual property as critical to its success. The Company has applied for or received trademark and/or service mark registration for, among others, 1-800-FLOWERS.COM, 1-800-FLOWERS, 1-800-Baskets.com, FruitBouquets.com, BloomNet, Card Isle, GreatFood.com, The Popcorn Factory, Cheryl’s Cookies, Mrs. Beasley’s, Celebrations Passport, Flowerama, DesignPac, Harry & David, Wolferman’s Bakery, Moose Munch, Cushman’s, Simply Chocolate, Personalization Universe, PersonalizationMall, Things Remembered, Shari’s Berries, Scharffen Berger, SmartGift, Vital Choice and Alice’s Table. The company also has rights to numerous domain names, including: www.1800flowers.com, www.cardisle.com, www.800flowers.com, www.1800baskets.com, www.flowers.com, www.personalizationuniverse.com, www.personalizationmall.com, www.thingsremembered.com, www.plants.com, www.florists.com, www.greatfoods.com, www.cheryls.com, www.celebrations.com, www.flowerama.com, www.designpac.com, www.simplychocolate.com, www.mybloomnet.net, www.napcoimports.com, www.thepopcornfactory.com, www.harryanddavid.com, www.wolfermans.com, www.vitalchoice.com, www.alicestable.com, www.berries.com, www.sharisberries.com, www.scharffenberger.com, and www.smartgift.com. In addition, the company owns a number of international trademarks and/or service marks. The company has also developed transaction processing and operating systems, as well as marketing data, and customer and recipient information databases.
Acquisition
On July 1, 2024, the company completed its acquisition of Scharffen Berger, a chocolate manufacturing company.
History
1-800-Flowers.com, Inc. was founded in 1976. The company was incorporated in 1992.
