The next big thing: growers scaling up
Horticulture Spot On
Oaklins’ specialist Frank de Hek surveys the horticulture landscape and unearths the market dynamics urging growers to consolidate and maximize on economies of scale.
Growers are getting squeezed between the breeders and wholesalers, who are both gaining bargaining power due to their increased size. We expect growers to fight back by increasing scale, with the ultimate goal of dealing directly with big-box retailers. The consolidation among growers will be accelerated by many other advantages of increased scale, the benefits of an integrated business model and the vast number of succession issues. On top of that, the valuation spread between small and advanced businesses offers opportunity for value creation, which can result in attractive returns for companies that take the lead. In 10 years from now, we expect to see several growing platforms on all continents.FRANK DE HEK HORTICULTURE SPECIALIST AMSTERDAM, NETHERLANDS
We ask Floré Group’s CEO Werner Krott to share his visionary outlook and the drivers behind his bold decision to merge the group’s azalea activities with those of a competitor. He cites Oaklins’ key role in helping find the right partner to create a new, best-in-class company capable of innovating the industry.
This edition’s case study features the sale of Floranova, an ideal match to increase buyer Sygenta’s international presence and broaden its portfolio.