NZ Merino Company CEO John Brakenridge steps down after 27 years

Long-serving New Zealand Merino Company chief executive John Brakenridge has announced his departure in six months’ time. Photo / NZ Merino

The man who has been described as transforming New Zealand’s merino industry is stepping down next year, after 27 years as chief executive of the New Zealand Merino Company.

In a statement to the Unlisted Securities Exchange yesterday, John Brakenridge, who is also co-founder of the company, said it was time to move on to new challenges.

He was looking forward to getting back to his “entrepreneurial roots” and would be looking for opportunities to get involved with new ventures while continuing to make a contribution to the primary sector.

NZM chair Kate Morrison said Brakenridge’s departure, in six months’ time, came with the company in a very strong position after three successive years of record profits, the successful establishment of a regenerative platform for the sector, and a strong team in place.

“John has been an outstanding leader for NZM, and he is now looking to move on to fresh challenges. With the company so well positioned, John and the board agree that now is the right time for a well-managed leadership transition with the company having a clear strategy for future growth.

“The board acknowledges and thanks him for the significant contribution he has made to the company, and for his part in transforming the wool industry of New Zealand which is now leading the world,” she said.

NZM recently announced its full-year results for the year ended June 30, posting earnings before interest and tax (EBIT) of $6.9 million, an increase of 8 per cent on the previous year, and net profit after tax of $4.4 million, up 3 per cent. A dividend of 50 per cent of after-tax profits would be paid to shareholders, which equated to a dividend of 41.6c per share.

A letter to shareholders yesterday said NZM proposed to acquire up to 267,401 ordinary NZM shares held by John Brakenridge and 35,306 ordinary NZM shares held jointly by John and Sarah Brakenridge, at a purchase price of $8.47 per share.

Morrison said the recruitment process for a new chief executive would start immediately and it would be an international search.

As part of the transition, chief operating officer Peter Floris would also gradually take on some of Brakenridge’s day-to-day chief executive responsibilities to ensure “a seamless process”.

Brakenridge said the past few years had seen “exceptional results”, with record profits and the development of NZM’s world-first ZQRX regenerative wool platform.

“I was exceptionally proud of, just a few months ago, launching the joint venture we have formed with Silicon Valley technology platform Actual, which will support growers in their decision-making on-farm and create value from the markets for the leadership they are demonstrating and the progress they are making.

“The way our growers have backed this business over the decades has been integral to the strength it now enjoys, supported by our brands who have believed in and championed the New Zealand merino story.”

In 1996, merino growers took the future into their own hands by establishing a brand and markets for their fibre as the Merino New Zealand industry-good organisation.

In 2001, it became a fully commercial company as The New Zealand Merino Company, owned 65 per cent by growers and 35 per cent by PGG Wrightson.

In 2011, growers purchased the PGG Wrightson shares and, following from that, four of the management became shareholders in the business.

In 2020, NZM listed on the Unlisted Securities Exchange and shareholders adopted a new constitution removing restrictions around share ownership to growers and employees.

In 2013, Brakenridge was recognised at the New Zealand International Business Awards, where he was named KPMG leader for outstanding contribution to international business.

The judges commented that by “flipping the traditional, production-led and commodity-based merino-growing industry on its head”, NZM had delivered a much-needed innovative approach to marketing an agricultural commodity.

They also mentioned how Brakenridge started with “a very clear vision” of what the industry needed to do to move merino out of the commodity basket and up the value chain.

“He has been resolute in his pursuit of that vision. Overcoming reluctance from some in the industry to challenge the status quo and do things differently, John has been a catalyst for change.

“[He] has transformed the New Zealand merino industry and created significant value for its multiple stakeholders.”