Smart Wool

New Arrangement to Revolutionize New Zealand Wool Industry

SmartWool Corporation, the single largest branded purchaser of New Zealand merino wool, today announced a revolutionary sourcing partnership with The New Zealand Merino Company that guarantees minimum price levels for New Zealand wool growers producing merino wool for use in SmartWool's products. The new contract, which follows on two previous multi-year contracts between the parties, is unparalleled in the industry, in that it covers a period of seven years, and has a total value approaching US$30,000,000.

Historically, merino wool has been bought and sold at auction, with no connection between the end-user of the wool and the wool grower. Thus, the wool grower had no appreciation for the intended use of the wool, and thus could not raise sheep or produce wool to meet specific quality standards.

Over four years ago, SmartWool started purchasing its wool under fixed price contracts with specific New Zealand wool producers. The newest SmartWool contract takes this partnership one step further, providing for an unprecedented seven-year term and establishing a minimum price to the wool grower that ensures the grower a reasonable return on their investment in raising Smart sheep. As stated by Brian Hore, one of New Zealand's largest wool growers and a long-time supplier to SmartWool, "this relationship provides certainty, stability and a fair return to the growers, and enables us to focus on long-term improvements in breeding and raising sheep to SmartWool's exacting specifications." "It also helps to ensure that raising sheep in New Zealand will remain a viable and sustainable lifestyle for me and my family for many years to come."

The contract is the latest initiative in SmartWool's "SmartPrint" program, through which SmartWool is committed to leaving a smart footprint on Earth for future generations. Through the SmartPrint program, SmartWool works with its supply chain partners to establish good business practices that focus on continuous improvement in animal welfare and environmental practices, and that ensure economic sustainability for the merino industry. For example, as part of this new contract, SmartWool has agreed to pay a premium to its growers to reward them for their efforts to end the controversial practice of "mulesing" sheep by the end of 2005 - many years ahead of the goal of ending the practice by 2010, as recently established by the Australian and New Zealand wool industries.

In commenting on this latest partnership between SmartWool and the New Zealand wool suppliers, SmartWool President, Chip Coe, noted that "SmartWool has a rich history of leadership and innovation, having essentially created the market for merino wool active apparel over the last ten years." "We are pleased to again take a leadership position by guaranteeing our wool growers a sustainable profit and rewarding them for working together with us toward processes that benefit the animals and the environment." Issuing a challenge to the outdoor and lifestyle apparel industry to join with SmartWool, Mr. Coe said "SmartWool looks forward to other companies joining our efforts to bring stability and sustainability to the wool industry with new and innovative programs such as this partnership. The industry needs more long-range thinking. It is not enough to sign on to a publicity-oriented boycott and walk away."

SmartWool is the leading performance brand of wool-based apparel, socks and accessories. Nothing can compare to SmartWool for the ultimate in performance, comfort and easy care. SmartWool is superior at vaporizing moisture, controlling temperature and odour and is guaranteed not to shrink. It's also a renewable resource that illustrates the design genius of evolution.

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