Greg Smith: Bremworth CEO on Kainga Ora allowing wool carpet providers the chance to tender for supply in its homes

The wool sector's prepared for price challenges as Kainga Ora backtracks on a previous ban. 

The social housing agency will allow wool carpet providers the chance to tender for supply for carpet and underlay in its homes. 

It's used synthetic carpet for the last decade. 

Bremworth CEO Greg Smith says the industry can win on durability. 

He told Mike Hosking their suppliers have seen wool business double in three years, and if they can get the price right, the sector will win more. 

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Episode Transcript

Speaker 1 (00:00):
We've got to win for our friends in the Wall business.

(00:02):
Change coming from Housing New Zealand that tender process. Previously,
if you dealt with Wall, they didn't want to know you.
Now they've had to change the tender process. Wall manufacturers
can be involved, which is good. Bremworth chief executive Greg
Smith back will this Greg.

Speaker 2 (00:14):
Morning, Morning Mike.

Speaker 1 (00:16):
The ability to participate does not a contract make. Can
you compete?

Speaker 2 (00:22):
Yeah, we know we can compete on durability. In fact,
we can win on durability, and now we just have
to win on price, which won't be easy, but that
creates innovation and we're going after it. We expect to
win it.

Speaker 1 (00:33):
How have frustrated have you been? Because the government talks
about this, You're supposed to favor New Zealand and Wall
and all that stuff, and then they overtly did not.
How does that work?

Speaker 2 (00:44):
Well, I mean, obviously, I think it was early December
when we found out that news and we were yeah,
obviously we're pretty frustrated. It was great to be on
your show and you've always supported Wall. We appreciate a
good start to the new year with this news, so
you know it's some time to get on with it.

Speaker 1 (01:00):
Reckon the tider's turning the conversation out there. Do people
start to get it? Do you feel that or not?
Or is it still all about price?

Speaker 2 (01:09):
Now? Look, I mean we just spoke to one of
our biggest supplies yesterday in our office at pepatoety and
they were saying that about thirty percent of their business
as well from fifteen percent three four years ago. So absolutely,
consumers are getting onto it. They want we'll carp it
without a doubt, and so if we can get the
price right, then we'll win more.

Speaker 1 (01:30):
Do you is it one of those products that, yes,
it will always be more expensive, but there are the
benefits and that's what you need to explain. Or can
you genuinely compete on price?

Speaker 2 (01:39):
Well, I just think we have to, and so we've
got to find a way to compete at those lower
prices with the synthetic players until you know, until such
time as legislation sort of rules out having those types
of chemical products, and the consumers continue to wake up
to micropresstix good stuff, you know, we'll start to win.
Don't worry about that.

Speaker 1 (02:00):
I'm not worry. I'm not worried as long as long
as long as long as we can help you out,
Mike go well, appreciate it. Greg Smith, Brimworth Chief Executive.

Speaker 2 (02:06):
This morning. For more from the mic Asking Breakfast, listen
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