Owned by EPW
100% owned by Elders Primary Wool (which is 50% owned by Primary Wool Cooperative), the new venture is market driven, focusing on supplying wool that meets the market’s needs and wants.

Agreement with CCA
WME has entered into an agreement with retail carpet giant, CCA Global Partners (CCA), the world’s largest carpet retailer. This relationship will result in an increased return for wool that meets market needs. CCA, combined with its 14 affiliated companies, covers the globe with more than 3600 locations worldwide. Some of their retail interests include International Design Guild, ProSource, CarpetOne, Floor and Home, and Flooring America.

Stuart Chapman, EPW’s Managing Director, said that this announcement was the culmination of a significant period of planning and investment. “The new initiative had been structured specifically with the end goal of wool growers receiving an increased return for their clip. Elders was unhappy with the continued downward trend in the demand for wool and set out to reverse the financial decline for their wool grower clients. We have created a simplified and more effective path to market which will utilise our procurement network through Elders Primary Wool Ltd, our export expertise (J.S. Brooksbank & Co), and grower involvement through the Primary Wool Cooperative. WME and the relationship with CCA Global Partners will add to Elders already comprehensive knowledge and interests in the industry”, said Mr Chapman.

Carefully selected partner
“To increase the profitability of strong wool for growers and to increase the demand for wool carpet it is crucial to understand the motivations behind the carpet purchasers’ decisions. That’s where the real benefits will be gained through working with CCA Global Partners as they intimately know the market and have invested heavily in consumer research. We have actively set out to work with companies that are the biggest and the best”, said Mr Chapman.
The research showed a significant consumer trend towards sustainable and natural carpet options especially at the top end of the market where cost was not the primary purchasing decision. “We are working with CCA to develop a luxury wool carpet brand that will be sold in their stores across the US, made with New Zealand strong wool” said Mr Chapman. “Not only are CCA Global Partners the largest carpet retailer in the world, they also have an outstanding retail point-of-sale system and in-depth professional sales training. CCA will back the venture with aggressive sales training and marketing resources which will ensure the carpet sales professionals on the ground in the US will understand the true benefits and virtues of New Zealand wools and be able to pass this directly on to the consumer” he said.

NZ wool a great story
“We see obvious benefits in developing products with the end user in mind” said Krista Eliason, President of International Design Guild, a division of CCA Global Partners. “We take great pride in understanding what the consumer wants, needs and desires when it comes to making a flooring purchase. This knowledge gives us a unique capability to successfully create and build brands through our variety of retail and commercial flooring operations” she said. “We believe the luxury wool carpet market has been lacking a relevant and compelling consumer story for some time” said Charlie Dilks, Chief Product Officer of CCA Global Partners. “When Wool Marketing Enterprises approached us with their quality and sustainability story about New Zealand wool carpets, we saw the compelling story we need to attract consumers. This story appeals to an underleveraged premium market while capitalising on consumers’ heightened interest in environmentally friendly and sustainable products.”

Marketing strategy emerging
Elders and CCA Global Partners are also jointly developing the sales training programme and carpets with the assistance of five of the largest and most reputable carpet manufacturers in the US. Work is underway on the marketing strategy by a team of US marketing and industry experts. This includes Boston-based marketing strategy and creative practice Brand Content which is working to develop a brand for the new venture to meet consumer wool trends.
Wool Marketing Enterprises expects to make further announcements in upcoming weeks including details of supply agreements from New Zealand wool growing groups and, in conjunction CCA Global Partners, details of agreements with several large carpet manufacturers based in the US.