Harry & David

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Harry & David
Type Subsidiary
Industry Food and gifts
Founded 1910
Founders Samuel Rosenberg
Headquarters Medford, Oregon, United States
Number of locations Approximately 50 retail locations
Two operational locations:
Medford, Oregon (headquarters, orchards, manufacturing and distribution);
Hebron, Ohio (distribution center)
Area served United States
Key people Craig Johnson, chief executive officer
Products Gift baskets, holiday and special occasions gifts, pears and fruit, flowers and plants, chocolates and sweets
Employees 8,000 including seasonal employees (2013)
Parent 1-800-Flowers.com Inc.
Website harryanddavid.com

Harry & David Holdings, Inc. (Harry & David) is an American-based premium food and gift producer and retailer. The company sells its products through direct mail, online and in retail stores nationwide, and operates the brands Harry & David, Wolferman's and Cushman's. Harry & David was founded in 1910 by Samuel Rosenberg in Medford, Oregon as a premium fruit company. It is owned by 1-800-Flowers.com.

History[edit]

Bear Creek Orchards[edit]

Harry & David first began operations in 1910 when Samuel Rosenberg purchased Comice pear orchards in Southern Oregon after encountering the orchard's pears at the previous year's Alaska–Yukon–Pacific Exposition. Located in Medford, Oregon, the pear orchards dated to 1885 and were named Bear Creek Orchards after Bear Creek, which ran through the property.[1][2][3]

In 1914, Rosenberg's sons Harry and David took over the management of the property after their father's death and the completion of their agricultural degrees at Cornell University.[2][4] The brothers named the pears Royal Riviera pears,[5] and focused on selling them to customers in Europe until the Great Depression made this no longer feasible.[2][6] The brothers began instead to market the pears to customers in the United States, first to businessmen in Seattle and later in San Francisco and New York City.[2][6][7] As their business continued to grow in the 1920s, the brothers built a packing house and a pre-cooling plant to prepare the pears to be shipped long distances.[2]

The company officially began to sell via mail order in 1934.[5][6] The brothers advertised in magazines and newspapers, with their first ad appearing in Fortune in 1936.[2] Other ads appeared in National Geographic, The New York Times and Time.[6][8] In 1937, the company introduced its "Box of the Month" plan. This was later renamed the "Rare Fruit Club" and eventually the "Fruit of the Month" club.[2][9] In the late 1930s, Harry and David adopted their stepfather's last name, Holmes, due to concerns about rising anti-semitism as World War II approached.[2][10]

Harry and David[edit]

In 1946, the company incorporated under the name "Harry and David", replacing the previous name, Bear Creek Orchards.[2][6][11] Following David's death in 1950 the company was handed down to his son, David H. Holmes, who served as president of Harry & David from 1955 to 1970. Harry died in 1959.[2][12][13] Under David H. Holmes' leadership, Harry & David acquired the premium rose company Jackson & Perkins.[12][13][14] After 9 years, David H. Holmes, passed the business to his cousin, John R. H. Holmes, son of founder Harry.[15]

In 1972, Holmes created Bear Creek Corporation as a parent company to Harry & David and other subsidiaries.[12][16] Bear Creek Corporation went public in 1976 and remained public until its purchase by RJR Nabisco in 1984.[2][16] Two years later, the company was acquired by the Shaklee corporation. Shaklee, along with its subsidiary, Bear Creek Corporation, was then purchased by the Japanese firm Yamanouchi Pharmaceutical in 1989.[1][2][17] During the 1990s, Harry & David expanded its retail locations, opening more than 119 stores.[18] Bear Creek Corporation launched its website in 1996 to sell all of its product lines, including Harry & David.[19][20]

In June 2004, Harry & David was acquired by two investment firms, Wasserstein & Co. of New York, which purchased 63% of the company's stocks, and Highfields Capital Management of Boston, which acquired 34%.[21][22][23]

In 2007, Harry & David sold Jackson & Perkins to focus solely on its gift and premium food business.[14][24] The next year the company acquired two online and catalog retailers: Wolferman's, which specializes in English muffins and breakfast foods; and Cushman's, a Florida-based fruit company specializing in a tangerine-grapefruit hybrid.[25][26][27]

The financial downturn of the late 2000s negatively impacted Harry & David's revenue and sales. In March 2011, the company filed for Chapter 11 bankruptcy protection. Reports from publications including The New Yorker and the Los Angeles Times cited the company's debt from its 2004 acquisition as part of the reason the recession hurt the company.[28][29] Harry & David remained operational while in bankruptcy[28][29] and, in May 2011, filed a reorganization plan in bankruptcy court.[30] The company emerged from bankruptcy in September 2011.[31] Following its exit from bankruptcy, Harry & David increased its profitability and revenue and, in September 2012, was named the "large company turnaround of the year" by the Turnaround Management Association.[32][33]

In November 2012, the company established a winery using Oregon grapes. The white and red wines were developed in partnership with a local winemaker.[34] The company began selling its winery wines through its website in 2012.[35][36] The company was sold in August 2014 to 1-800-Flowers.com Inc. for $142.5 million.[37]

Operations[edit]

Harry & David is a wholly owned subsidiary of 1-800-Flowers.com Inc.[37][38] and Harry & David Operations, Inc.[39][40] Harry & David produces and sells premium food and gifts under three brands: Harry & David; Wolferman's; and Cushman's.[41] Harry & David's product lines include gift baskets, flowers and plants, fresh fruit, chocolate and sweets, and wine.[28][29][34] Wolferman's main products include English muffins and other breakfast foods, and Cushman's is primarily known for selling Honeybells, a tangerine-grapefruit hybrid.[42]

The company operates three individual websites for its brands, HarryandDavid.com, Wolfermans.com and HoneyBell.com.[43] In addition to selling online and through mail order,[18] Harry & David's brands are sold in its retail stores nationwide. As of 2013, there were approximately fifty permanent retail locations and thirty temporary stores open for the holiday season.[33][41] Harry & David earns the majority of its profits in the fall and winter as a result of holiday-related orders.[24][44]

Corporate affairs[edit]

Harry & David is headquartered in Medford, Oregon, where the company is one of the Rogue Valley's largest employers.[45] The company operates 2,000 acres of orchards, manufacturing facilities and a distribution center there.[24] In 1997, Harry & David opened a second office in Hebron, Ohio called the Hopewell Campus, which handles distribution.[25][46][47] The company employed more than 8,000 employees in 2013, including temporary seasonal workers.[33]

The company's president is Craig Johnson. He held the position of CEO since October 2011.[34] Harry & David is a wholly owned subsidiary of 1-800-FLOWERS.COM, Inc. which acquired the company on September 30, 2014.

See also[edit]

References[edit]

  1. ^ a b Nathaniel Popper (28 September 2010). "Harry & David is in turmoil". Los Angeles Times. Retrieved 19 November 2013. 
  2. ^ a b c d e f g h i j k l "A brief history of Bear Creek Corp.". Mail Tribune. 3 April 2004. Retrieved 19 November 2013. 
  3. ^ Snyder 2009, p. 13.
  4. ^ Snyder 2009, p. 20.
  5. ^ a b Snyder 2009, p. 23.
  6. ^ a b c d e John Kennedy (15 December 1981). "Harry and David would be proud". Associated Press. Retrieved 19 November 2013. 
  7. ^ Snyder 2009, pp. 22–23.
  8. ^ Snyder 2009, pp. 28–30.
  9. ^ Snyder 2009, p. 31.
  10. ^ Snyder 2009, p. 33.
  11. ^ Snyder 2009, p. 37.
  12. ^ a b c "Son of Harry and David founder Holmes dies at 79". Mail Tribune. 21 August 2002. Retrieved 19 November 2013. 
  13. ^ a b Snyder 2009, p. 45.
  14. ^ a b "Harry & David sells Jackson & Perkins". Portland Business Journal. 2 April 2007. Retrieved 19 November 2013. 
  15. ^ Snyder 2009, p. 47.
  16. ^ a b Snyder 2009, p. 51.
  17. ^ Jay P. Pederson (2001). International Directory of Company Histories. St. James Press. p. 38. ISBN 1-55862-445-7. 
  18. ^ a b Merri Rosenberg (12 May 2002). "Harry and David Comes to a Mall Near You". The New York Times. Retrieved 6 March 2014. 
  19. ^ Snyder 2009, p. 57.
  20. ^ David Preszler (9 March 2000). "Company expects online sales to rise 150 percent a year". Mail Tribune. Retrieved 19 November 2013. 
  21. ^ Snyder 2009, p. 74.
  22. ^ Desilver, Drew (5 August 2005). "Oregon's Harry & David decides to go public again". The Seattle Times. Retrieved 14 February 2014. 
  23. ^ Ovide, Shira (28 March 2011). "Harry & David Bankruptcy: Everything You Need to Know". The Wall Street Journal. Retrieved 14 February 2014. 
  24. ^ a b c Greg Stiles (15 May 2007). "Loss reflects gain for Harry & David". Mail Tribune. Retrieved 19 November 2013. 
  25. ^ a b Greg Stiles (16 January 2008). "Harry and David branches out with muffin business". Mail Tribune. Retrieved 19 November 2013. 
  26. ^ "Harry & David reports year-end loss of nearly $20 million as sales decline more than 10 percent". Portland Business Journal. 17 September 2009. Retrieved 20 November 2013. 
  27. ^ "Harry & David acquires Cushman Fruit Co.". Direct Marketing News. 12 August 2008. Retrieved 20 November 2013. 
  28. ^ a b c Bruce Horovitz (28 March 2011). "Harry & David needs image upgrade, experts say". USA Today. Retrieved 19 November 2013. 
  29. ^ a b c Nathaniel Popper (29 March 2011). "Harry & David files for bankruptcy". Los Angeles Times. Retrieved 19 November 2013. 
  30. ^ Greg Stiles (23 May 2011). "Harry and David eyes late summer exit from bankruptcy". Mail Tribune. Retrieved 19 November 2013. 
  31. ^ Robert Goldfield (14 September 2011). "Harry & David emerges from bankruptcy". Portland Business Journal. Retrieved 19 November 2013. 
  32. ^ "Harry & David gets $100 million credit line". Mail Tribune. 5 October 2013. Retrieved 19 November 2013. 
  33. ^ a b c Nicole Friedman (4 October 2013). "Harry & David reports higher incomes, fewer year-round stores post-bankruptcy". The Oregonian. Retrieved 19 November 2013. 
  34. ^ a b c Suzanne Stevens (2 November 2012). "Harry & David launches winery". Portland Business Journal. Retrieved 19 November 2013. 
  35. ^ "Harry & David Introduces New Signature Wines for 2013" (Press release). Marketwired. 16 October 2013. Retrieved 6 March 2014. 
  36. ^ Peter Mitham (19 December 2012). "Oregon Wines Expand Reach". Wines & Vines. Retrieved 24 March 2014. 
  37. ^ a b Giegerich, Andy (September 2, 2014). "Harry & David sold to Internet retailing giant". Portland Business Journal. Retrieved 4 September 2014. 
  38. ^ "Company Overview of Bear Creek Orchards, Inc.". Bloomberg Businessweek. Retrieved 6 March 2014. 
  39. ^ "Company Overview of Harry & David Operations Corp.". Bloomberg Businessweek. Retrieved 6 March 2014. 
  40. ^ "Unaudited Consolidated Financial Statements". Harry & David Holdings, Inc. 29 December 2012. Retrieved 6 March 2014. 
  41. ^ a b "Court approves Harry and David reorganization plan". Associated Press. 30 August 2011. Retrieved 19 November 2013. 
  42. ^ Snyder 2009, p. 81.
  43. ^ Katie Evans (18 September 2009). "Harry and David’s annual web sales decline, but not as fast as total sales". InternetRetailer.com. Retrieved 19 November 2013. 
  44. ^ Greg Stiles (9 May 2008). "Harry and David loses $21 million in quarter". Mail Tribune. Retrieved 19 November 2013. 
  45. ^ Randa Gore (19 September 2013). "Harry and David’s Sees Success". KDRV. Retrieved 6 March 2014. 
  46. ^ Snyder 2009, p. 55.
  47. ^ Greg Stiles (8 May 2012). "Getting Moose Munch to mom, but how?". Mail Tribune. Retrieved 8 April 2014. 

Bibliography[edit]

External links[edit]