Airflo is a known and respected brand amongst Kenya’s flower growers. Will it soon disappear given Panalpina’s acquisition of the company?

Conrad: The new entity will be called Panalpina Airflo, so Kenya’s flower growers will still encounter the brand name, but more importantly they will still experience everything it stands for. Our customers will continue to receive the quality service that they are used to. In addition, they’ll also benefit from Panalpina’s global reach and expertise.

Colin: Conrad is right. Everything is being maintained—including more than 160 staff in Nairobi and Aalsmeer with their expertise and dedication. Airflo’s infrastructure, processes and attention to detail are also being preserved. Airflo’s legacy will definitely live on and Panalpina is bringing new ideas and people to the table.

What exactly do you mean by that?

Colin: A big benefit for customers is that Panalpina is great at connecting people and companies anywhere in the world, not just in Kenya and the Netherlands. Panalpina Airflo will help Kenyan growers to make the most of the worldwide opportunities available to them. The UK is an interesting market for example. The two companies combined can tailor-make solutions to fit individual customer needs for the UK. Together, we have a combined knowledge at product origin and product destination.

Conrad: Panalpina’s global reach and ability to network are definitely major advantages for our customers. Panalpina Airflo will bring different stakeholders to the table, in a way that is beneficial to everyone. We can connect growers with importers and exporters with growers. As one of the world’s biggest air freight users, Panalpina also has excellent relationships with the airlines. After all, Panalpina’s global annual airfreight volumes are many times those of Airflo.

Are volumes important to you?

Colin: We are more interested in the product moved than in the volumes.We call this product empathy. Volume is important, but it should be secondary to quality. If we do our homework on the quality side, we will automatically expand our business. Most of our competitors are more interested in the kilos moved than the product moved. We guarantee a quality service that is, frankly, unmatched by others in the freight forwarding industry. Other forwarders might offer false economy because customers end up losing money through product wastage.

Conrad: We work in partnership with our customers to meet their needs. And, because our stakeholders traditionally come from a flower-producing and flower-selling background, we understand the product.

In other words, quality is key and you can only assure it if you know the product?

Colin: Absolutely. Quality is key, be it for flowers or other perishables. Conrad: We don’t just move boxes from A to B — we care about what’s inside the box. This matters. It goes back to what Colin called product empathy. It helps us deliver a better service and keep the product fresh.

Can you give an example of how you guarantee quality?

Conrad: We are the only specialized handling company in Kenya to offload all of our products via dock seals. The flowers go from one controlled environment to another. We also use thermal blankets to cover the flowers during transit to the apron, which no other forwarder does. These and other extras such as vacuum cooling and temperature monitoring of all shipments help us deliver a quality product.

What role can Panalpina’s Charter Network play for Kenya’s flower growers?

Conrad: We’re looking to use the Panalpina Charter Network to try and develop new markets for Kenyan growers. The Charter Network will help customers develop their global reach.

Colin: It’s about watching markets and preempting good opportunities. We want to use our Charter Network to be proactive, not reactive.

Where could the journey go?

Colin: The U.S is certainly an interesting market.

Conrad: I agree. Currency has been a big challenge lately for the Kenyan flower growers, especially with the dollar-euro exchange rate. We recognize the pressure this puts on our growers. With Panalpina’s global reach, we can open up new markets like the U.S thereby diluting exposure to single markets and currencies.

Colin: Exactly. You can have one market suppressed by currency translation, but another will open up because of it.

How do you invest in business and customers?

Colin: We invest time and effort into planning complex, end-toend solutions that maximize our global network. We look at ocean freight options, too. This also means we’re CO2 conscious, as well as cost conscious. Every decision is based on how the customer will benefit. We responsibly manage the cool chain to ensure the product arrives at its destination in the optimum condition. Ultimately, our customers want accountability.

Conrad: We understand the importance of investing — in the cold chain, in infrastructure, in trying to stay best in class. We plan to invest in track-and-trace capabilities, bar coding and improved temperature monitoring systems. Supporting our customers as much as we can in the area of e-commerce is also a top priority.

What will be the impact of e-commerce on the Kenyan flower market?

Colin: We are convinced that perishables, such as flowers, are going to play a huge role in the global e-commerce revolution. Smart phones are like virtual stores and, increasingly, they‘ll also be used to purchase flowers. The technology is already established and so are the networks for delivery. This will be a game changer. Conrad: The rise of e-commerce will enable growth at consumer level, for example in China and the U.S. With our combined expertise in flowers and logistics we can drive these new opportunities.

What other trends do you see for the flower industry?

Conrad: The customer wants to buy directly from the producer in Kenya. The producer in Kenya also wants to sell directly to the country of consumption. Cross-trading, or direct marketing, is a growing trend in the industry, something Panalpina Airflo will be able to facilitate globally.

Colin: If customers can go from A to C while avoiding B, it removes unnecessary costs, and also removes potential delays. Crosstrading ensures speed to market and we have the global network. We are in high season.

Do you expect business as usual running up to Valentine’s Day?

Conrad: We expect the usual huge peak in the run-up to Valentine’s Day, so we will put on extra charter flights as required to deal with the additional demand.

Colin: This is a perfect example of providing a quality service — we’re allowing customers to respond to these peaks by helping them manage demand. On Valentine’s Day, many flowers will be bought and appreciated, but few people will realize just how much effort and care has gone into these beautiful fresh cut flowers.