New Zealand carpet manufacturer Bremworth has announced it will resume production of synthetic carpets, marking a major shift from its wool-only strategy adopted in 2020. The NZX-listed company will begin manufacturing synthetics at its Auckland facility in the next financial year, following a leadership shake-up prompted by dissatisfied shareholders.
The reversal comes amid significant pressure on the company’s performance, with revenue dropping from NZD 148.1 million in 2018 to NZD 80.3 million in 2024. A group of shareholders, led by new chairman Rob Hewett, successfully initiated changes at the board level, resulting in the resignation of three directors and CEO Greg Smith.
Hewett, a wool farmer himself, said the decision to exclude synthetics had left the company disadvantaged in a market where 85% of carpet demand is for non-wool products.
“Our customers are clearly looking for a synthetic product. By not having it in our portfolio, we made things more difficult,” said Hewett. “I do this with a heavy heart, but the company’s viability is at stake.”
Bremworth’s wool-only strategy, though environmentally driven, had not translated into increased sales. Operating costs remained high, and pressure mounted from major carpet retailers in New Zealand and Australia seeking a broader product offering.
The return to synthetics comes shortly after Bremworth settled a legal dispute with rival Godfrey Hirst over a 2020 marketing campaign that promoted wool carpets exclusively. Godfrey Hirst alleged the campaign misrepresented the environmental and health impacts of synthetic carpets. Bremworth denied wrongdoing but admitted some of the messaging may have been misleading and has since withdrawn the materials.
The new synthetic products will be marketed under a separate brand to maintain a clear distinction from Bremworth’s premium wool offerings. No major capital expenditure is required, though a modest headcount increase is expected to support the production ramp-up.
While the move has disappointed some in the wool industry, including Federated Farmers and wool industry advocates, others acknowledge it as a necessary step for business sustainability. Industry group Wool Impact said the diversification would enhance the company’s long-term viability while supporting continued investment in wool.
“This does not diminish Bremworth’s commitment to wool. The world needs more wool,” said Wool Impact CEO Andy Caughey.
