Prime branches out with floral shipping segment

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by Paul Schreiber|ret||ret||tab|

SBJ Reporter|ret||ret||tab|

pschreiber@sbj.net|ret||ret||tab|

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An industry that generates about $250 million annually in freight-shipping costs is fertile ground for Prime Inc. as it launches Prime Floral LLC, said Brad Quinn, sales and marketing representative. The rationale is clear-cut: $8 million to $10 million in projected revenues for 2004.|ret||ret||tab|

Prime Floral LLC has been in operation since Feb. 27, and providing transportation, consolidation and cross-docking service to the floral industry will be its main functions, Quinn said.|ret||ret||tab|

"The floral industry as a whole is about $19 billion (per year)" said Jim Wanko, executive vice president of the Wholesale Florist & Florist Supplier Association. The area Prime has expanded to hauling cut flowers is about a $9 billion retail market, he added. |ret||ret||tab|

The new Prime venture has been under consideration for a couple of years, Quinn said. Moving forward with it involved strengthening Prime Floral's presence in certain target areas.|ret||ret||tab|

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Service centers|ret||ret||tab|

Prime added three service centers in Miami, Portland, Ore., and Ventura, Calif., the smallest of which will be at 8,000 square feet, and Prime will utilize these locations as consolidation points, Quinn said. Product will be stored there for a short time in terminal coolers, and then redistributed to area businesses. |ret||ret||tab|

Regional service centers were what Prime Floral lacked against the competition, Quinn said, adding the company has the trucking capacity "to cover all the floral needs, but we've never had the consolidation points" in Florida and California "to take care of all of the customers' needs." Leases are scheduled to be signed on the three locations March 8.|ret||ret||tab|

Some of the more significant client contracts Prime Floral already has in place are with Delaware Valley, Falcon Farms, Hill Floral, Hallmark World Class Flowers, Flor-Expo and Kendall Floral, Quinn said. These businesses will be serviced from either the Miami or Ventura location, he added.|ret||ret||tab|

Prime Floral's three strongest competitors are Armellini Industries, Wilsey Bennett and L.C.T., Quinn said. |ret||ret||tab|

The new service will not necessitate any new truck-related acquisitions, said Clayton Brown, marketing representative. All floral freight movement will be done using the company's existing fleet of 1,700 trucks and 2,500 refrigerated trailers.|ret||ret||tab|

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Five employees|ret||ret||tab|

Staffing Prime Floral's three locations will be five employees who have experience in the distribution of cut flowers and green plants. They've come on board from an unnamed floral competitor, Quinn said, and will offer expertise "with our customer base, with our pricing models (and) with our target niches."|ret||ret||tab|

These employees will be the only start-up costs. "Everything else will be absorbed here in Springfield," Quinn said, adding that operations will overlay the company's claims and dispatch functions.|ret||ret||tab|

Prime was founded in 1970 by president Robert Low. Hauling food-grade tanker products, nonhazardous freight, refrigerated foods, air freight and building supplies to the 48-contiguous states, Mexico and Canada, it produced revenues of over $539 million in 2003, according to the SBJ Book of Lists. |ret||ret||tab|

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