YEALD Neaws 2024-2 / Ornamental horticulture

Page 1


YEALD NEAWS

GROWTH, INNOVATION, AND COLLABORATION IN ORNAMENTAL HORTICULTURE

Wouldn’t it be great if you could expand your business to remain (or become) a major player in the field? It sounds logical: Growth can strengthen your position and help make your company future-proof. But how do you achieve growth? What path do you choose, and how does your environment influence it? How do you seize the opportunities and possibilities offered by the market?

In this edition of YEALD NEAWS, we discuss flourishing businesses in ornamental horticulture who are tackling these questions. Each has chosen their own path, from scaling up to internationalization or to focusing on an exclusive market segment and marketing. Through these strategies, these entrepreneurs are making their companies future-ready.

We start with the unique collaboration between SV.CO and Vilosa, who have founded the Unique Growers Company platform together. This partnership is a prime example of how businesses can strengthen themselves through scaling up and sharing their ambitions. René van Dop and Sander Verbeek share their vision for the future and the steps they are taking to keep their companies sustainable, solid, and innovative.

Unique Growers Company

SV.CO and Vilosa have launched a unique platform. What does this close collaboration mean?

Next, we visit Berg RoseS, where Arie van den Berg shares the challenges and successes of the rose market. By combining internationalization, scale, and an exclusive product range, Berg RoseS stands out in a competitive market.

We also speak with René Hendriks of Opti-flor, who takes us into the world of orchids. Opti-flor continues to grow thanks to its market orientation and focus on quality and product innovation.

Finally, we’re proud to introduce new additions to our team, wrapping up this edition with a brief introduction to our latest team members. <<

Berg RoseS

How do you make a rose company in the Netherlands futureproof?

Opti-flor

Opti-flor strives to lead the market by focusing on quality and innovation.

New team members

We’re pleased to introduce our new colleagues.

Unique Growers Company
“BY

JOINING FORCES, WE ARE MAKING OUR BUSINESSES FUTURE-PROOF.”

A new major player has entered the ornamental horticulture sector; new but with experience, strength, and ambition. Unique Growers Company is a platform born from a close collaboration between SV.CO and Vilosa. “We share strategy, staff services, and finances,” says René van Dop, director of Vilosa. “And we’re always moving forward, focusing on the future and with a keen eye for detail,” adds Sander Verbeek, director of SV.CO.

The journey to unite the two companies was a long one, but this relationship goes back years. René and Jelle Strijbis, co-owners of SV.CO, became friends at a horticulture networking event years ago. Both companies are based in the Westland area, and three years ago, Sander reached out to René to collaborate on energy initiatives. Daily contact followed, which provided both companies with a strong foundation. Their partnership intensified,

“A shared vision and ambition for the companies is an important factor when you want to work together.”

further strengthened by personal and professional connections.

“We have never seen each other as competitors,” Sander explains, “but always as separate companies. YEALD saw the match and brought us to the table. A match in terms of business, production, ambition, and personal alignment. That shared vision and ambition for our companies was crucial in deciding to work together.”

A unique approach to scaling up

Ornamental horticulture faces increasingly complex challenges. Societal, governmental, and market pressures are intensifying the profitability model. Dutch growers have consistently demonstrated adaptability to tackle these challenges, a quality evident in the approach of Unique Growers Company. And, as the name suggests, they are doing this in a unique way.

“With ten hectares, you’re too small in our market to address all the challenges,” explains René. “We want to eliminate our reliance on natural gas, use only biological crop protection, and simultaneously navigate increasingly complex technology and regulations. That requires new specialists within the company, significant steps forward, and substantial investment, all without overlooking anything. This is why we chose to scale up.”

“Our goal is to make Unique Growers Company

“Our goal is to make Unique Growers Company scalable, we aim for growth.”

scalable,” Sander adds. “We aim for growth. We’re currently organizing the platform and integrating IT, energy, HR, and finance teams. We’re also looking for ambitious entrepreneurs to join the platform; growers who complement the assortment of SV.CO and Vilosa, are leading in ornamental horticulture and are eager to innovate with us.”

A decision with impact

Unique Growers Company has charted a clear path towards growth and is now taking steps to organize and scale that growth. Although this is no easy feat, the management team has embraced this direction wholeheartedly.

“We could have chosen to wait,” René reflects. “But you must think carefully about such a step. This is a decision that will impact the rest of your life. If you don’t take it, that regret will always linger.”

Both SV.CO and Vilosa have experience with close collaboration. “Both companies were born from mergers,” Sander explains. “Unique Growers Company isn’t a merger, but our prior experiences have made this process much quicker.”

“Exactly,” René adds. “We immediately knew that we had to pool our finances and share results. For many businesses, this is a major hurdle in such partnerships, but

our experience has taught us that it’s the key to success. So, we didn’t hesitate.”

Sander emphasizes this point. “Both companies have specific goals, and ours are perfectly aligned. These goals will become more attainable if we move forward together, whether it’s in investments, organization, or any other challenges we may be facing in horticulture.

Unique Growers Company

Unique Growers Company is a platform in which the individual businesses remain intact while the growers engage in close collaboration. The platform operates under shared ownership, with investment decisions being made collectively, and the organizations work together to leverage each other’s strengths. This approach enables scale-up and creates a sustainable size for the platform.

There is also room for other growers to join, particularly those who complement the offerings of SV.CO and Vilosa, are leaders in ornamental horticulture and are eager to grow and innovate alongside them.

“We have a broader perspective and keep each other on our toes, this will allow us to invest more effectively in the future.”

Collaborating as shareholders isn’t up for debate; it’s a given. Without it, you risk being too late or missing opportunities. The platform will enable us to secure sustainable margins for our products.”

Hitting the accelerator

Unique Growers Company is embarking on what promises to be an exciting journey. The metaphorical car has been purchased and is being prepared for the road. Steps are being taken to organize everything, processes are being laid out, and the news is out. Now, it’s time to hit the accelerator and go.

“Yes, it has taken time to get where we are,” Sander admits. “And that’s been necessary because this is a

Sander Verbeek

Sander (left) is 50 years old and the general manager of SV.CO. He began his career in cut flowers but transitioned to potted plants after four years. In 2006, he merged his business with that of Arie Strijbis. Later, Arie’s son Jelle took over the reins from his father, ultimately leading to the formation of SV.CO. Over the following years, the company experienced significant growth, from product innovation to marketing, modernization, new construction projects, and acquisitions. SV.CO grows kalanchoe, chrysanthemums, poinsettias, primulas, asters, schlumbergera, and celosia.

René van Dop

René (right) is 38 years old and the general manager of Vilosa. The company was founded six years ago through a merger between Solis Plant and Veranda. LV Plant also became part of Vilosa, where vegetable plants are cultivated. Vilosa specializes in kalanchoe and chrysanthemums. René works closely with co-shareholder Rick van Luijk.

complex endeavour that we wanted to get right the first time around. We’ve been paying great attention to detail. Organizing this has been incredibly satisfying because it is enabling us to make our ambitions tangible. Instead of just talking about our ambitions, as we did over the last year while building this platform, we’re now taking action and seeing results.”

“We have a broader perspective and keep each other on our toes,” René concludes. “This will allow us to invest more effectively in the future, in technology, people, and processes. We’re genuinely excited about getting in this car and driving forward. We’re ready to realize our ambition and are taking the steps to make it happen. We’re looking forward to it.” <<

“SUCCESS IN ROSE CULTIVATION OFTEN DEPENDS ON THE ENTREPRENEUR”

Once, there were more than a thousand rose growers in the Netherlands. Today, fewer than twenty remain. How do you make a rose-growing business in the Netherlands future-proof? “It comes down to scale and an exclusive product range,” says Arie van den Berg of Berg RoseS in Delfgauw. “That approach has always worked for us.”

For Berg RoseS, scaling up combined with an exclusive assortment has proven effective. The company has

“Scaling

up combined with an exclusive assortment has proven effective.”

carved out a unique position, with a location in Delfgauw, one in Kenya, and, until recently, a business in China, where Arie remains a shareholder. A project in Colombia has also recently been launched. In short, Berg RoseS is a grower based in the Netherlands yet active across nearly every continent.

“Many growers operate solely in the Netherlands or

abroad,” Arie explains. “We were in a position to produce both domestically and internationally. It’s complex, but we have managed to make it work. That means we can now monitor various markets and have more levers to pull.”

Exclusive varieties

Roses are the most widely cultivated cut flower globally.

“It’s one of the most iconic flowers in the world and yields a good price per kilogram, making air freight economically viable,” Arie says about the international rose market. “This means many growers are concentrated near the equator, where labor and energy costs are relatively low, yet global distribution is still feasible. That’s also where the largest growers are, with hundreds to over 1,000 hectares of roses and other cut flowers, generating revenues sometimes exceeding $300 million.”

How can you compete with that from the Netherlands?

“Yes, labor and energy have been significant challenges for decades, while technology and sustainability increasingly impact the production process,” Arie explains. “In the Netherlands, you can differentiate with exclusive, high-quality varieties grown in the most sustainable way possible.”

Staying relevant and profitable

“We’ve always focused on the future,” Arie continues. “I think we’ve made the right investments at the right time. Whether opening operations in Kenya or China, scaling up our business in the Netherlands, or investing heavily in

“We’ve always focused on the future and made the right investments at the right time”

Family business

Arie van den Berg joined the family business after finishing school in 1992. His family has been in horticulture since 1900. In 2007, as the fourth generation, Arie took over the business from his father, Matthijs, and Uncle Martien, transforming it into the multinational it is today.

“There is still a lot of room for improvement throughout the supply chain”

sustainability initiatives like full LED lighting and connecting to geothermal networks, these steps have helped us maintain market relevance and kept us profitable. Every step has been manageable so far, so we have avoided taking on unnecessary risks.”

Automation and sustainability

“I see a few small steps we can take in automation,” Arie notes. “Some growers have gone bankrupt because they tried to implement a fully automated cultivation system at once. I think automation will increasingly play a role, but initially, it should be used to make work easier and more efficient for people.”

“You can also see this in our investment in full LED lighting,” Arie adds. “We had to relearn how to grow roses entirely. Each variety reacts differently to LED. But we’re saving a tremendous amount of energy. Roses generate substantial revenue, but they also have high costs. If you can make production more sustainable with LED and lower the cost per rose, you’re making progress.”

Top quality, small carbon footprint

Labor and energy will continue to be challenges for rose growers in the Netherlands in the coming years. “But there’s still a lot of room for improvement throughout the supply chain,” says Arie. “For example, logistics can be optimized by reducing transport and handling times. There’s also plenty of work to do on the marketing and sales side. Greater collaboration among growers and the auction can strengthen market positions. By offering exclusive, high-end varieties with a small carbon footprint, you remain very appealing to florists and wholesalers.”

“If you can effectively tell the story of top-quality and

small-carbon-footprint roses to consumers, the Dutch rose industry can undoubtedly maintain a strong market position in Europe,” Arie believes. “Royal FloraHolland could play a role in this, for instance, by becoming a safe haven for flowers with sustainability certifications. Be good at what you do and dare to boast about it.”

The future of Dutch roses

“I believe roses will still be grown in the Netherlands ten years from now, although the relative share of Dutch production in the global market will continue to shrink,” Arie concludes. “It’s also a challenging crop to sell or transfer as a business. Success often depends more on the entrepreneur than the business itself. That’s a change many companies still need to make. In the Netherlands, we still have true growers, whereas abroad, you often see businesses backed by investors who treat roses as just one of many promising investment opportunities. That’s an area where we can still make a real difference.” <<

International ambitions

In 1975, the Van den Berg family nursery transitioned to rose cultivation. In the Netherlands, they grow roses in a high-tech 16-hectare greenhouse. The company also operates a 55-hectare location in Kenya and recently launched a project in Colombia, collaborating with a chrysanthemum grower to optimize transport to Europe. The business is renowned for its high-quality, exclusive roses.

“EVERYTHING REVOLVES AROUND THE QUALITY AND VARIETY OF THE PRODUCT”

Phalaenopsis orchids were a goldmine not long ago, though susceptible to trends. The market for these orchids has faced significant challenges due to oversupply and external factors like energy prices. Opti-flor has weathered the storm and is even expanding in the Westland region. “We’ve always said we want to lead in product development,” says René Hendriks, grower at Opti-flor. “As long as we remain innovative and at the forefront with our concepts, we’ll continue to grow.”

It’s a busy time at Opti-flor. The Opti-flor Experience Days are being held, drawing visitors worldwide to explore their new concepts. Innovating in concepts and understanding market trends are the company’s strengths. “We now have thirty different lines, each encompassing a variety of orchids,” René explains. “By differentiating with various concepts, we create strong bonds with florists and garden centers under our brand.”

Focus on quality

“When we first entered the orchid business, we thought the long cultivation cycle would be a strength,” René says. “We assumed it would deter newcomers. We were wrong about that. We moved away from tomatoes partly because we no longer wanted to produce based on price. At one point, the same issue threatened white orchids.”

“In 2017, the market really collapsed. We decided to

persevere and maintain our focus on quality despite shrinking margins,” René continues. “By keeping our focus on quality and diversifying our assortment, we were able to keep the business going.”

Five pillars

Opti-flor differentiates itself as an orchid grower by focusing on five core pillars: R&D, innovation, plant vitality, expertise, and quality. “Everything revolves around the product,” René explains. “That’s why our plants enjoy peace, space, and cleanliness in our greenhouse, ensuring consistent and uniform growth. Ultimately, every plant must stay beautiful for 100 days after reaching the customer—that’s the goal. At the same time, we ensure an attractive range of concepts for florists and garden centers.”

One of Opti-flor’s latest innovations is the garden center display tables. “These are fully curated displays where our concepts are easy to find,” René explains. “We now have over 100 tables in 60 garden centers, offering customers a diverse selection of high-end orchid concepts. These displays require some maintenance by the garden centers but at the same time are major customer magnets for many of these businesses.”

Consistency and adaptability

The key to Opti-flor’s success lies in its ability to balance consistent quality and service with a willingness to take risks. “In the beginning, we focused solely on large pot sizes, producing 25,000 Grandoflora orchids per week,” René recalls. “Now, we offer much more diversity and a range of concepts. We want to be a product leader, and everything in the company is geared towards product development.”

“We only adopt new technologies and innovations once they’ve proven themselves in practice,” René explains. “We use only tried-and-tested cultivation techniques, and our R&D investments go into developing our products and concepts. Additionally, we invest heavily in our license to produce—sustainability, reducing our carbon footprint— and, most importantly, in our people. We involve them in our vision and take good care of them.”

Expansion

Despite the volatile market, Opti-flor is growing and expanding with new construction in the Westland area. “We had to give up two greenhouses for residential development but had already invested in land during the COVID-19 pandemic,” René explains. “The pricing challenges and energy crisis of 2021 hit us hard, but we decided to move forward with our plans. Now, we’re building a state-of-theart greenhouse on Waellandweg in Monster.”

Despite market risks, the decision to continue with construction has proven wise. “Since spring 2023, energy prices have improved, and some competitors have exited the market. Because we pushed ahead, we now have a fantastic greenhouse for concept development, more room for new ideas, and additional staff. During this week’s Open Days, customers are flooding in. Without this investment,

we would be struggling to keep up, even under better market conditions.”

The next generation

With its strategic focus, five pillars, and well-timed investments, Opti-flor is in an excellent position for the future. “Ultimately, we’re doing this for the next generation,” René says. “We have three young talented people in the company who are eager to take the reins. They are a bridge to the future, where perhaps even our own children will step into the business.”

“This means we’re focusing on restructuring the organization and management. We’re investing in our people and adapting as needed to stay future-proof. This includes transitioning to 100% biological crop care, preparing the company to grow without gas, and ensuring we produce the highest quality product with the smallest possible footprint.”

“It’s exciting,” René concludes. “We’re in a good place right now. It’s fulfilling to work on the company’s future from the inside and get the entire team on board. Ultimately, we want to remain Europe’s go-to orchid supplier for a diverse range of high-end concepts.” <<

“It’s fulfilling to work on the company’s future from the inside”

One of the largest

René Hendriks (61) is the third generation of growers in the family business. His family has been farming since 1928. In the 1980s, they cultivated tomatoes and were part of the Prominent group. After fifteen years, the company faced a crossroads: scale up in tomatoes or transition to a different crop. In 1999, they chose orchids, initially growing them alongside tomatoes. Today, Opti-flor is one of the largest orchid growers in the Netherlands.

OUR NEW TEAM MEMBERS

Young talents are strengthening our team at YEALD. We are pleased to introduce them.

Roan van Staveren

Roan is our new M&A analyst with a strong background in strategic management and business administration. He earned his MSc in strategic management at Tilburg University, where his initial interest in and experience with M&A began. Roan has already gained experience in strategy development and execution.

Growing up in the Westland, Roan became familiar with the horticulture industry at a young age. At YEALD, he uses his analytical skills, strategic insight, and project management expertise to contribute to the growth and development of businesses in our dynamic sector.

Boswoning 4a 2675 DZ Honselersdijk

+31 174 75 25 00 www.yeald.nl

Remco van Velden

Remco grew up in the Westland, the heart of the horticulture business. After completing his bachelor’s degree in international business, he earned his MSc in finance at Tilburg University. During his studies, Remco gained financial experience.

During one of his internships, he developed an interest in M&A and contributed to forming a strategic partnership between a Dutch cooperative and a Moroccan tomato supplier. As an M&A analyst at YEALD, Remco applies his financial expertise, precision, and enthusiasm to solving financial challenges for our clients, enabling them to achieve their growth ambitions.

Rob van Leeuwen

+31 6 51 62 41 08 rl@yeald.nl

Peter van As +31 6 10 69 69 06 pa@yeald.nl

Robin Berendse +31 6 24 20 10 10 rb@yeald.nl

Mathijs Breederveld

+31 6 42 17 03 17 mb@yeald.nl

Maxim Noordman

Maxim is our new assistant M&A analyst and is eager to explore the world of horticulture. With a background in economics, law, and business economics, he is focused on gaining experience in the dynamics of M&A.

Maxim brings an international perspective, having lived in Asia, Latin America, and Europe. This global experience allows him to contribute to YEALD’s international expertise. Driven by curiosity, Maxim is enthusiastic about advancing the growth of the horticulture sector and helping businesses realize their full potential.

Arthur Vijverberg +31 6 40 55 04 61 av@yeald.nl

Jerry van Leent +31 6 13 90 95 45 jl@yeald.nl

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.