Bremworth chief executive Greg Smith leading the charge for wool

Bremworth chief executive Greg Smith likes nothing more than extolling the virtues of wool. Photo / Supplied

Last month, Greg Smith marked his first year as chief executive of carpet company Bremworth. He talks to Otago Daily Times business editor Sally Rae about his desire to help reinvigorate New Zealand's strong wool industry.

Growing up, a young Greg Smith never imagined he would end up running a carpet company.

Mind you, he also never contemplated jewellery as a career - "or woolly undies either".

What he did want to do was the "right thing" and that was reinforced when he neared a key life stage - he turns 50 this year - and he contemplated what his children would say their father did.

Smith recently marked his first anniversary as chief executive of carpet and wool company Bremworth.

Prior to that role, he was with merino clothing success story Icebreaker for about nine years, including as chief executive and brand president for almost four years.

Before that, he held senior executive roles at Michael Hill Jeweller for more than 20 years.

So why the switch to the carpet industry?

"Whenever you say you're going to become a business which is focused on sustainability and back it up by quitting $60 million in sales, that's pretty gutsy, right?

"I just think it takes real courage to do what you're saying you want to do," he said.

In 2020, Bremworth announced it was ditching synthetics in favour of wool and other natural fibres, citing "negative impacts on people's health and the planet".

It unveiled a new transformational strategy in which it said the long-term dangers posed by plastics were becoming clear.

Plastic was a global problem and manufacturers needed to be part of the solution.

Smith was at Icebreaker when he heard what Bremworth was doing, and he knew how hard that was.

A company that walked the talk, rather than just talking it, was compelling; playing an active role in influencing people to make decisions that were better for the planet.

Reflecting on his first year anniversary, Smith said it had been a "really interesting year", of which eight months had been spent working from home.

He had only been in the job for three weeks when he had to start working from home, thanks to Covid-19.

While technology such as Zoom meant getting work done could still be done very effectively, it was difficult to be people focused, and it was not a way of working that he would have preferred for his introduction to the role.

Listen to Jamie Mackay interview Greg Smith on The Country below:

A passion for the wool industry was not something that was bred into him; he quips that it came from a mid-life crisis when he turned 40.

At that time, he was working at Michael Hill and becoming a chief executive was a goal he had written down "years and years" previously.

Meeting Icebreaker founder Jeremy Moon was to be a pivotal moment, changing the way he thought about the world "in so many ways".

Moon created a new category - wool being worn next to the skin - and he was inspiring to work with.

That past 10 years of his life had been about wool and "what a great fibre it is". Those Kiwis creating the wool were "just awesome". They were also under-valued, as was their wool.

He was always amazed how humans thought they were so clever and that they could do better than nature. He described synthetics as the antithesis of wool - it was smelly, cheap, flammable and not sustainable.

But it was "all about money" and that was how synthetics came to life, involving massive budgets and the investment of "millions and millions".

Since Bremworth announced its switch to focus on wool, the company was seeing traction.

Telling people that "wool is cool" and brilliant for many uses, not just carpet, took both money and time. But Smith said there were encouraging signs that were in favour of the wool industry, that had not necessarily been around previously.

The Government was starting to question non-renewable energy and plastics were a by-product of non-renewable energy.

As it started to get phased out, those products would not exist, meaning synthetic carpet would not exist.

In Europe, there was a move to companies or brands having to have circularity stories, whether it was repair, recycle or return.

Research around microplastics was becoming really compelling and he believed the banning of synthetic carpet - just like single-use plastic bags in New Zealand - could eventuate.

He believed that it was not a stretch to say that, within the next decade, there could be "something really meaningful" from legislation.

Smith understood the frustration of woolgrowers, particularly those in generations of farming families, seeing what was once the "golden fleece" being left in the woolshed until the price improved 20c/kg to help cover shearing costs.

Those exiting the wool industry was a "disaster" for companies such as Bremworth and Smith was also concerned about the effect of forestry plantings on the sector.

This year, Bremworth was looking at introducing longer-term contracts, just like what Icebreaker did in the fine wool industry.

While that would not support the wool industry per se, it would support some farmers and some communities, he said.

There were lots of "cool ideas" coming across Smith's desk, whether it was wool-related businesses or innovations that were seeking investment, and he believed there were lots of reasons to be optimistic.

Ultimately, the "proof in the pudding" for Bremworth would likely be starting with the contracts and rewarding farmers for sticking with strong wool and their breeding programmes.

He was very proud that Bremworth manufactured in New Zealand, used New Zealand wool, supported New Zealand communities and exported to the world.

The past year had been "far more dynamic" than he ever imagined, for various reasons.

The fact Bremworth was making "significant progress" was something he was very pleased with.

And he believed there was a chance to make a meaningful difference to the business.

He believed strong wool was where fine wool was in 1995; he had seen the way it could be made to work and be profitable, and a "win-win" for everyone, from the grower to the manufacturer, consumer and brands that supported it.

"I'm really excited about that, that sort of thing gets me up in the morning," he said.

Bremworth has been in the news recently over a stoush with rival carpet maker Godfrey Hirst.

Last week, Godfrey Hirst said it had chosen to remove any claim for damages in its High Court case, but it would still pursue court action against the company.

It said Bremworth was still "greenwashing" and continuing "misleading conduct" in relation to synthetic carpet.

US-owned Godfrey Hirst is a large producer of synthetic carpets.

Smith said he genuinely believed competition was good, as long as there was a level playing field.

Having competitors work together, to find great solutions for consumers, was really healthy. Having competitors fighting was counter-productive for both organisations.

Both companies could probably be doing more in their businesses if they did not have to pay a lot of money to lawyers. But, Bremworth would not be backing down, he said.

Smith said he was far more excited now than when he first went into the role because he knew more.

"When I first went in, I was excited about a new challenge. Now I'm in it, it's far bigger and more meaningful than I ever thought."

The response from farmers had been "overwhelmingly good", although he hastened to add he would love to pay more money for their wool.

People had offered support to help pay for legal costs which was "pretty incredible".

Helping to reinvigorate the strong wool industry was a responsibility Bremworth took very seriously.

During the recent Primary Industries New Zealand Awards in Auckland, Bremworth's sustainability programme won the innovation and collaboration award.

There was an "enormous cheer" from the 600 people in the room, including many farmers, and he hoped to repay that faith.

"We see the importance of this product and industry to New Zealand," he said.

Covid-19 had also accelerated consumer trends; people were taking stock of what was around them and they were increasingly focused on health and wellbeing.

He recalled a recent hotel stay, where he arrived by a green cab, was given the opportunity to reuse his towels, there were natural products provided, and the potato chips - "which looked strangely appealing at 10 pm" - were in a compostable bag.

"It's all around us," he said.

Gen Z and millennials - the ones who were going to inherit the planet - wanted to follow brands that were doing good or trying to be better.

"That's what I'm excited about," he said.