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 $ =

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 ScenarioNPVIRRAverage NI Base Case$147,56471%$ 35,777 Worst Case$ 41,19135%$ 1,985 Best Case$216,63891%$ 55,755

Breakeven Analysis 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…