1-800-FLOWERS.COM, Inc. Expands Product Offerings Across the “Better for You” Food Category with Acquisition of Vital Choice®

Rhea-AI Summary

1-800-FLOWERS.COM has expanded its product offerings by acquiring Vital Choice, a provider of premium wild-caught seafood and healthy food products. This acquisition adds over 400 new items, including frozen fish, organic meats, and nutritional supplements, enhancing the Company’s better for you category. With rising consumer interest in healthy options, Vital Choice aligns well with 1-800-FLOWERS.COM’s growth strategy. The new subsidiary will leverage the Company’s e-commerce platform for expanded market reach.

Positive

• Acquisition of Vital Choice enhances product offerings with over 400 new healthy food items.
• Strategic fit with growing consumer trends toward health and wellness.
• Expected to drive top and bottom-line growth leveraging the e-commerce platform.

Negative

• None.

Provides Customers with Hundreds of Additional Healthy Eating Options from Wild-Caught Seafood and Sustainably Farmed Shellfish to Pastured Proteins, and More

JERICHO, N.Y.--(BUSINESS WIRE)-- 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) (“the Company”), a leading provider of gifts designed to help customers express, connect, and celebrate, has expanded its product offerings across the growing “better for you” food category with the acquisition of Vital Choice®, a trusted provider of exceptional quality premium wild-caught seafood and sustainably farmed shellfish, pastured proteins, organic foods, and marine-source nutritional supplements.

1-800-FLOWERS.COM, Inc. Expands Product Offerings Across the “Better for You” Food Category with Acquisition of Vital Choice® (Graphic: Business Wire)

With this acquisition, the Company adds more than 400 new “better for you” offerings to its product assortment, including frozen, canned, and smoked wild fish, shellfish, organic grass-fed beef, pasture-raised pork, organic soups, organic fruits, seasonings, oils and broths, fish-based pet treats, omega-3 and other supplements, plus seaweed and kelp-based items.

“’Better for you’ products are contributing to the strong momentum we’ve been seeing in our gourmet foods business over the past year, and Vital Choice is a natural fit with our existing brands to help drive continued growth in this category,” said Steve Lightman, Group President of Gourmet Foods and Gift Baskets, 1-800-FLOWERS.COM, Inc. “There is growing consumer interest in food that is healthy, natural, and convenient, with newer, younger customers especially drawn to these products. We look forward to offering our customers even more healthy eating options and driving strong top and bottom-line performance for Vital Choice by leveraging our best-in-class e-commerce platform.”

Vital Choice was founded in 2001 on the premise that wild Alaskan salmon is nature's most perfect food. Since then, it has built longstanding sourcing relationships with a network of approximately 60 well-managed fisheries that provide both high-quality and hard-to-find seafood that meets its rigorous standards for sustainability, while also extending its offerings to include additional products for healthy lifestyles.

Vital Choice will operate as a wholly owned subsidiary of 1-800-FLOWERS.COM, Inc.

For downloadable images, please visit the 1-800-FLOWERS.COM, Inc. Newsroom.

Lakeside Partners, a boutique investment bank specializing in M&A advisory services with offices in Seattle and Minneapolis, acted as the exclusive financial advisor to Vital Choice.

About 1-800-FLOWERS.COM, Inc.

1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help customers express, connect and celebrate. The Company’s e-commerce business platform features an all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Stock Yards® and Simply Chocolate®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad-range of products and services designed to help members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; and DesignPac Gifts, LLC, a manufacturer of gift baskets and towers. 1-800-FLOWERS.COM, Inc. was recognized among the top 5 on the National Retail Federation’s 2021 Hot 25 Retailers list, which ranks the nation’s fastest-growing retail companies. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com or follow @1800FLOWERSInc on Twitter.

Special Note Regarding Forward Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or beliefs concerning future events and can generally be identified using statements that include words such as “estimate,” “expects,” “project,” “believe,” “anticipate,” “intend,” “plan,” “foresee,” “forecast,” “likely,” “will,” “target” or similar words or phrases. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, statements regarding the acquired business and customer interest in the acquired business’ products; the Company’s ability to successfully integrate the acquired business and assets; its ability to cost effectively acquire and retain customers; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because of new information, future events or otherwise, made in this release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, please refer to the Company’s SEC filings, including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20211027005827/en/

Investor:

Joseph D. Pititto

(516) 237-6131

E-mail: invest@1800flowers.com



Media:

Kathleen Waugh

(516) 237-6028

kwaugh@1800flowers.com

Source: 1-800-FLOWERS.COM, Inc.

FAQ

What is the significance of 1-800-FLOWERS.COM acquiring Vital Choice?

The acquisition allows 1-800-FLOWERS.COM to expand its offerings in the healthy food category, potentially boosting sales and market share.

How many new products will be added to 1-800-FLOWERS.COM's portfolio after this acquisition?

The acquisition adds over 400 new healthy food options, including seafood and organic products.

What are the expected benefits of the Vital Choice acquisition for FLWS shareholders?

Shareholders can expect growth in revenue and market expansion as the Company taps into the health-conscious consumer market.

When was the acquisition of Vital Choice announced?

The acquisition was announced on October 27, 2021.