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Godfrey Hirst Drops Damages Claims Against Bremworth

Legal31 July 2022BRWConsumer Discretionary

Media release1 August 2022
World’s Largest Flooring Company Drops Damages Claims Against Kiwi Wool Carpet

Brand

GodfreyHirsthasabandoneditsclaimfordamagesandagreedtoprovidedetailsofitsown

advertisingcampaignsafteritacknowledgedduringaHighCourthearingthatithadnot

provided all documents relevant to the case.

ThehearingfollowsanongoingDavidversusGoliathbattlewithGodfreyHirstattemptingto

prevent NZ owned Bremworth making specific claims about the benefits of wool carpets.

GodfreyHirstisownedbytheworld’slargestflooringcompany,MohawkIndustries,whoalso

ownstheFeltexbrand.ListedontheNewYorkStockExchange,Mohawkhasannual

revenuesinexcessofUS$11.2bnandhasasignificantshareoftheplastic-basedsynthetic

carpet market.

1

In2020Bremworth,whichhasmanufacturingfacilitiesinNapier,Whanganuiand

Papatoetoe,adoptedanewstrategywhichsawitshiftto100%NZwoolfibresforthe

production of wool carpets.

ThemovehasbeenseenasasignificantboostforNewZealand’sagriculturalsectorand

potentiallythecountry’sexportrevenuesatatimewhenwoolsaleshadslumped.

Bremworthhasalsoreduceditsownconsumptionofimportedplasticrawmaterialsby

approximately 2,500 tonnes per annum.

WhilelatestGovernmentdatashowsthevalueofNewZealand’swoolproductexports,of

whichmostiscarpet,hasfallenby44%overthepastsixyears,therearepositivesignsfor

the industry with forecasts projecting a 10% increase in export revenue for 2023.

2

2

Ministry for Primary Industries. Availablehere.

1

Mohawk Industries. Accessiblehere.

GodfreyHirstbroughtacaseagainstBremworthsayingtheNZcompany’sclaimsaround
woolcarpetsbeing"betterfortheenvironment"andthataswitchfromsyntheticstoallwool

carpets is "changing for good" are misleading.

ThiswasdespiteGodfreyHirstmakingsimilarclaims,includingthattheypridethemselves

on making the most environmentally friendly carpet on the planet.

Aspartofthelegalprocess,Bremworth’scounselrequestedthatGodfreyHirstprovide

copiesofitsownadvertisingalongwithdetailsofGodfreyHirst'sengagementwiththe

CommerceCommissionpriortobringingitsclaim(theCommissiontooknoenforcement

action) and what Godfrey Hirst had been communicating to the industry.

AtthehearingbeforeAssociateJudgeJohnston,GodfreyHirstacknowledgedithadfailedto

provide all of its relevant advertising.

ThroughitslegalcounselGodfreyHirstsaiditwouldbeprovidingtheadvertisingatafuture

date, however, the company would be dropping its damages claim against Bremworth.

GregSmith,BremworthCEO,saysthecompany,whichhasbeenvotedNewZealand’smost

trustedcarpetbrand,standsbyits“Let’sGoGoodTogether”campaignwhichdoesnotin

any way mislead NZ consumers.

Smithsayshebelievesthatwoolcarpetsarenotonlythebestfordesignandperformance

on the floor, wool fibre is also NZ grown, natural, biodegradable and renewable.

“NewZealand’swoolindustryhasstruggledinrecentdecadesagainstthebackdropof

cheapersyntheticalternatives,buttheworldischangingandweareconfidentour

homegrown wool is the natural solution to imported synthetic carpet fibres.

“Ourresearchshowsmoreconsumersseethebenefitsofwool,howeverwestillhavea

significantamountofworktodotoprovidethefarmingsectorwiththereassurancethey

need to remain committed to the industry in the long term.

“Rebuildingthedomesticandexportindustryandeducatingthemarketrequiresasignificant

investment and our full attention - which this court action is an obvious diversion away from.

“AsacompanyweremaincommittedtosupportingNewZealand’swoolsectorandworking

to promote the lifestyle and design benefits of this natural fibre.

“Wefirmlybelieveitisaconsumer’srighttomakeaninformedchoicebetweenwool
products and synthetic alternatives which are essentially plastic,” he says.

-ENDS-

For images please seehere

Distributed on behalf of Bremworth byImpact PR. Forfurther information or images, please contact

Mark Devlinmark@impactpr.co.nz(021509060)

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