1-800-Flowers.com adds fish to its gift and snack menu


1-800-Flowers.com Inc. added seafood to its gift and snack line with the acquisition of Pacific Northwest-based Vital Choice.

Terms of the deal announced Wednesday for the wild-caught fish, shellfish and organic beef supplier were not disclosed.

CEO Chris McCann said of the acquisition of his company: “It’s a brand that we believe we can grow. Credit: Raychel Brightman

On Thursday, shares of 1-800-Flowers.com jumped after the company announced its first quarter results.

Vital Choice, a closely held company in Bellingham, Washington, was founded in 2001. The company will operate as a wholly owned subsidiary of 1-800-Flowers.com.

In a conference call Thursday, 1-800-Flowers.com chief executive Chris McCann said the acquisition illustrates the company’s focus on the “best for you” business category. “

“It’s more than just a product extension for us,” he said. “It’s a brand that we think we can grow.”

Steve Lightman, group president of gourmet foods and gift baskets at 1-800-Flowers.com, said the acquisition aims to tap into younger consumer demand for “healthy, natural and convenient” foods.

E-commerce company Jericho offers a large menu of floral, gift and snack products from brands such as 1-800-Flowers.com, Cheryl’s Cookies, Harry & David, Shari’s Berries, Moose Munch and The Popcorn Factory.

Vital Choice will be integrated into the company’s website, joining the Stock Yards steak brand in offering main course options.

Before trading Thursday, 1-800-Flowers.com reported a net loss of $13.2 million, or 20 cents per share, on a 9% increase in revenue to $309.4 million. in the first trimester.

That compares with a net loss of $9.8 million, or 15 cents per share, on revenue of $283.8 million in the 2020 quarter.

Shares of 1-800-Flowers.com rose 3.2% to close Thursday at $29.44.

McCann noted that the 9% increase in revenue came on top of 51.5% revenue growth in the first quarter a year earlier. The 2020 quarter increase came amid a surge in e-commerce demand fueled by the COVID-19 pandemic.

The company also reaffirmed its guidance for fiscal 2022, including revenue growth of 10% to 12%.

The forecast came despite what the company sees as a challenging environment with a tight labor market and rising wage rates as well as higher raw material costs and shipping rates.

For the 2021 fiscal year ended June 27, 1-800-Flowers.com posted record revenue of $2.12 billion compared to $1.49 billion the previous year.

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