Harry & David Gets Hungrier

As a result, Harry & David needs to factor unpredictable weather trends into catalog plans. For its fruit crops, Harry & David maintains a surplus to account for normal variations in the weather. It can then dispose of the surplus without an additional cost impact. But for extreme weather that wipes out an entire crop — such as the oranges in Florida or the cherries in Washington — and effectively drains the company’s backup supply, Harry & David is forced to substitute a fruit of equal or greater value, or source the fruit from the domestic fruit market at an added cost since Harry & David is buying on the spot without a contract.