Bremworth’s synthetic carpets U-turn after all-wool model

Bremworth will start making synthetic carpets again. Photo / Supplied

NZX-listed Bremworth says it will start making synthetic carpets again - reversing a decision made in 2020 to focus on woollen carpets only.

The company said its move was in response to feedback from major partners.

Bremworth said the move would also allow it to achieve improved factory utilisation through the additional volume of carpet produced.

The company will recommence production of synthetic carpet at its Auckland-based facility in the next financial year.

“This move will allow Bremworth to better meet expectations of the major carpet retailers across New Zealand and Australia, who have expressed a preference for Bremworth to return to supplying both wool and synthetic,” Bremworth said.

The new synthetic range, which will initially comprise a small number of products, will be distributed under a separate brand to distinguish the products from its Bremworth-branded all-wool products.

No new capital expenditure was required, it said.

The company anticipates a minor increase in headcount to support the additional volume.

Bremworth said it remained committed to growing and strengthening its wool carpet segment, which would be assisted by the broader production base.

The company went down the wool-only track mid-way in 2020.

No sooner had it done so, multinational competitor Godfrey Hirst launched proceedings over its advertising claims.

Last month, Bremworth and Godfrey Hirst settled.

Godfrey Hirst had alleged that aspects of that campaign mischaracterised the relative environmental and health impacts of synthetic and wool carpets and breached the Fair Trading Act.

While Bremworth denied breaching the Act, it acknowledged that aspects of its past advertising from the 2020 marketing campaign may have misled some consumers.

Earlier in April, Bremworth chief executive Greg Smith - who led the company’s natural fibre strategy - announced he would step down as chief executive after almost four years in the role.

Bremworth appointed carpet industry expert Craig Woolford as interim CEO.

During his tenure, Smith also introduced 10-year strong wool contracts, spearheaded sustainability initiatives, expanded Bremworth’s direct-to-consumer eCommerce business and successfully negotiated a $100 million insurance settlement following Cyclone Gabrielle.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.