Bama Gruppen

flowersFlowers is a new and important focus areafor BAMA. In 2010 the business area consolidatedits market position and garnered manyimportant experiences for further work. Theestablishment of a separate trading business forflowers represented an important milestone.bAMA offers flowers to Norwegianconsumers through a numberof sales channels. In thegrocery trade we deliver toNorgesGruppen (NG) and REMA 1000 (BaRe)in line with the same model as for fruit andvegetables. BAMA’s flowers are also sold atpetrol stations and in kiosks. The businessarea additionally includes specialist storesgroup Floriss, which is a leading franchisebasedchain with 89 stores. BAMA thus enjoysa wide-ranging presence in this segment,and a solid platform for future development.Results for 2010 came in slightly lower thanexpected, but were nonetheless slightly up onthe previous year.New trading business establishedJanuary 2010 saw the establishment of thenew company BAMA Blomster Trading AS. Thecompany is responsible for all flower suppliesto units in the business area and the rest ofthe Group. BAMA purchases flowers from abroad range of suppliers in Norway, otherEuropean countries such as Denmark and theNetherlands, and Africa. Controlling the goodsflow is critical for ensuring efficient operationsand high quality. In the same way as for fruitand vegetables, consumers of flowers areswayed by high-quality, appropriately-pricedattractive and fresh products.Nuanced approach requiredFlowers are also similar to fruit and vegetablesin that customers’ preferences areforever changing. For example, recent yearshave seen a clear move away from pottedplants to cut flowers. Trend-monitoring andactive concept development are thereforekey activities. These must be performedwith a nuanced approach, as BAMA sellsflowers through sales channels of differingnatures. In the grocery trade it is importantfor offerings to be attractive and readilyavailable, yet robust and predictable. Hereconcepts are developed in close collaborationwith the chains, where it is important to getconsumers to appreciate that the flowersin the grocery stores are of good quality.The Floriss chain’s specialist stores requirea wider and more sophisticated selectionand highly knowledgeable service staff. In allsales channels, BAMA extensively develops itsoffering by testing concepts and monitoringsales performance for the products concerned.This is particularly important due to the factthat little objective, quantitative market datais externally available for flowers.Dedicated ongoing focusBAMA has defined flowers as a strategicgrowth-driver for the future. The companywill adopt a deliberate focus on cultivatingmarket positions, not least within grocerywhere the largest growth is expected to beachieved. Flowers did not become a separatebusiness area until 2008, and we are still inan expertise- and experience-building phasewhere we are laying the foundations forfuture work. Expertise exchange with the restof the BAMA organisation will be important,while we will also remain attentive to thespecific challenges in the market for flowers.Sales performance20062007200820092010BAMA’s activities within flowers are operated through BAMA Flower(grocery and service market), Floriss Drift (specialist stores) andBAMA Flower Trading (purchasing) . The units are included in BAMAFlower Holding, which is owned by BAMA Gruppen.590+ 16%508+ 8%470+ 25.9%374+ 11.7%334+ 6.3%Incl. franchise sales.24 BAMA annual report 2010BAMA annual report 2010 25