Where life is not too rosy…

The dark side of cut flowers– 127 different chemicals, some banned in Canada, are

used in Colombian greenhouses– 70% of casual laborers in Colombia’s flower farms

are women who earn 60 cents an hour and work up to 60 hours a week

– Workers suffer from a myriad of health problems linked to exposure to pesticides

Fair Trade Fair Trade is an organized social movement

and market-based approach that aims to help producers in developing countries and promote sustainability

Fair Trade Benefits

Workers receive fair wages and protection from harmful chemicals

Growers are managing for environmental sustainability

Community development

Fair Trade Growth

Fair Trade flower sales Worldwide growth – 47% increase in

2007 U.S. growth – 50% each year

Consumer awareness – 30% annually 56% purchase conversion

Where life is turning up roses… and the green

stuff…

Shannon Rogal

Tamara Peeke

Laura Hornung

Mission Statement

• To provide our customers with beautiful floral arrangements, friendly and efficient service, and awareness to empower consumers and producers to participate in Fair Trade and environmentally sustainable solutions.

• To support growers' efforts towards economic independence and control over their environment and to challenge the power structures that undermine their rights to a livelihood.

• To protect the environment and use natural resources sustainably throughout our trading and to promote environmentally responsible lifestyles.

• To set a positive example of a Fair Trade model of business based on partnership, people-centred values, and sustainability.

Target Market

• Individuals who value social responsibility and environmental sustainability

• Saskatoon and surrounding area– Saskatchewan’s largest city– Estimated population as of December

31, 2008 – 210,000– Serving over 400,000 locally– Fastest growing city in Saskatchewan

Management

• Carolyn Jones – owner / manager– Lived in Ecuador for 2 years – Passion for fair trade products and

environment– Interest in entrepreneurship and small

business management• Diploma – Business Management

– Certified Canadian Accredited Floral Manager– Worked at Grower Direct for 2 years

Occasions

• Celebrations• Triumphs• Miracles• Misfortunes• Adoration• Spontaneous acts of kindness

Other

• Complimentary products– Cards– Balloons– Stuffed animals– Vases and pottery

• Delivery services

Competition

• Non-Fair Trade florists– Grower Direct– Blossoms– Michelle’s Flowers

• Local farmers’ markets

Marketing

Broadway Avenue• High volumes of foot traffic• Proximity to downtown and other

merchants• The Broadway Business

Improvement District (BBID)– Newsletter – The Buzz– Website

Marketing

• Partnerships– The Better Good– Ten Thousand Villages– Clay Studio Three– Handmade House

Marketing

• Pure Petals website• Newspaper• Radio• Local businesses and churches

– Wedding planners– Funeral homes

Pricing

Premium price for a premium product:

10% higher than non-certified products

Competitor Bouquet

$65.95

Commitment to Social Responsibility

$72.55+ =

Capital Structure

• Initial Investment of $150,000• 40% debt financing at rate of 6%

– Payments of $6,178 annually

• 60% equity financing• Owner-manager investment of

$50,000• Require additional equity investment

of $40,000

Dividend Policy

• 20% of cash in excess of $100,000 outstanding at the end of each year

• Year 4 - $9,500• Year 5 - $25,000

Investment Analysis

Scenario NPV IRR Average NI

Base Case $147,564 71% $ 35,777

Worst Case $ 41,191 35% $ 1,985

Best Case $216,638 91% $ 55,755

Breakeven Analysis

Breakeven Analysis

0

1000

2000

3000

4000

1 2 3 4 5

Expected # of Sales

Breakeven # of Sales

Breakeven Number of Sales Per Day: 11

Conclusion

A great investment!• First mover advantage in

Saskatoon• Partnerships with other Fair Trade

vendors• Passion and determination from

management

Questions…