Pop goes 1-800-Flowers.com

1-800-Flowers.com continues to expand its reach beyond flowers into other gift merchandise with the acquisition this week of popcorn product marketer The Popcorn Factory. Terms weren’t disclosed. The Popcorn Factory, which sells popcorn plus other premium food gift items through its catalog and web site, generated about $30 million from consumers and corporate customers in 2001.

1-800-Flowers.com CEO Jim McCann notes that 1-800-Flowers.com’s existing brand strength, online presence and delivery capabilities should drive sales and gain operating efficiencies for the Popcorn Factory brand. For 1-800-Flowers.com, the Popcorn Factory acquisition adds greater depth to its offering, which it has been building out from its original assortment of flowers over the past year with the addition of premium gift foods such as chocolate and other non-flower gift items including Lenox china collectibles. The acquisition also gives 1-800-Flowers.com the Popcorn Factory`s database of approximately 1 million customers, including a growing list of corporate accounts, established brand strength within gift foods category, and what McCann termed “very attractive gross profit margins in excess of 45%.”