Godfrey Hirst Drops Damages Claims Against Bremworth
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)
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- PGW — PGG Wrightson Limited: Annual Report for Financial Year to 30 June 20222022-09-19
“ANNUAL REPORT 2022 | 23 Agency group | Rōpū umanga RevenueOperating EBITDA $ 189.4M $ 21.8M ▲ 1.5% ▼ 13.2% PGG Wrightson Procurement Coordinator – Wool, Rosie Moore, and Wool Sales Administrator, Annabel Busby, interact with the public to promote the many uses for wool…”
- PGW — PGG Wrightson Limited: Annual Results Announcement to 30 June 20222022-08-15
“PGG Wrightson Ltd | NZX Announcement 3 Agency Group Our Agency group incorporates the Livestock, Wool and Real Estate businesses. Operating EBITDA was $21.8 million and was down $3.3 million on the prior year’s strong result. Our Livestock business performed well in…”
- PFI — Property for Industry Limited: Annual Meeting Presentation and Speeches2022-05-12
“NZX and media announcement — 13 May 2022 And finally, we can anticipate. We can see buildings not just for what they are today, but what they could be tomorrow. Seeing the potential in under-utilised industrial property requires vision and patience. But the pay-off…”