Carrfields managing director Craig Carr said CP Wool was compelled to push creative boundaries to make a difference for its wool growers.
The key to making that difference involved a revamp of the company’s Just Shorn brand and that opportunity arose when the Just Shorn contract, launched eight years ago, came due for renewal.
CP Wool identified an opportunity to rein in greater control that would create significantly more value for CP Wool and its grower suppliers.
While the new model was complex, the bottom line was 50% of the retail margin would now be captured by CP Wool.
“We have reinvented what we do and how we do it and it’s all about value rather than volume as we hit the high-end North American market.”
CP Wool had partnered with North American luxury flooring specialist Carlisle Plank Flooring that provided access for the exclusive Just Shorn product to a ready-made, high-end customer base.
Through newly formed partnerships CP Wool now had a hand in control right along the supply chain from the grower to Christchurch-based spinner NZ Yarns, majority owned by CP Wool, to the American designers, manufacture and marketing.
Three celebrity interior designers – American reality television stars Mark Brunetz, Jennifer Bertrand and Lonni Paul – were instrumental in developing the new range of designs and were now charged with producing new concepts every quarter for which CP Wool would contract with growers according to demand.
Carr said the key area of opportunity came through identifying the luxury apartment market in New York where 80% of a residence’s floor area must be covered in soft flooring to reduce noise.
“We also know that the high-end homeowners in the States like to follow trends so they often have carpets in their homes for about five years before replacing them with more-up-to-date colours and styles.
“That creates a further strong opportunity for our future sales,” Carr said.
“We are compelled to push creative boundaries and will be continuously developing and commercialising step change yarn systems and working with our partners to provide new, unique and exclusive ranges.
“This strategy has resulted in a product that stands apart from the rest and will deliver value-add back to growers.”
Otago wool growers and sheep breeders Trevor and Karen Peters were part of the 20-strong contingent of farmers and industry representatives that attended the relaunch of the Just Shorn brand at the new World Trade Centre in New York.
They were “blown away”.
“This is trail blazing.
“It’s been a long time coming for wool and it’s exciting,” Trevor Peters said.
They admitted they were initially sceptical.
“But when we got there amongst it all and saw what was happening we could see it was what we had been waiting 60 years for.”
The Peters family shears 100,000 sheep across six farms in west and central Otago, producing 1200 bales of wool annually.
“This is a terrific opportunity, very powerful. We will be shearing to it,” they said.
In time the brand’s relaunch was expected to bring benefits to the wider NZ wool sector, CP Wool chairman Howie Gardener said.
“We’re working to add value across the industry from growers up.
“Our marketing of Just Shorn premium carpet in the States will have a positive impact on the perception of NZ wool in general among North American consumers,” Gardner said.
Just Shorn’s regrowth in the United States was being driven by Krista Eliason, CP Wool’s managing director North America.
Meanwhile, Carrfields Livestock had expanded its livestock network with the purchase of Farmlands Livestock, effective from June 30.
“Since the purchase of Elders NZ almost three years ago the Carr family, board and management have been very focused on needing to build a solid South Island footprint to complement our North Island livestock business,” Carr said.
The acquisition would add more than 35 agents across NZ with about 30 of them in the South Island, growing the Carrfields Livestock team to more than 120 agents NZ-wide.
Carr said the decision by Farmlands to sell its livestock division had been made in the best interests of its shareholders as livestock marketing and procurement would be provided to more of their 65,000 shareholders than was now possible.
“By utilising Carrfields Livestock’s nationwide network of livestock agents we can provide a greater range of livestock options for Farmlands shareholders,” Carr said.
