Glerups, the Danish woollen slipper maker, has extended its contract with New Zealand woolgrowers to meet increased demand for its product.
The company signed a 2017 contract through the New Zealand Merino Company for 120 tonnes of wool for about $1.5 million on a visit to New Zealand this week, and expects to return next year to secure a 2018 contract, said Glerups supply chain manager Jesper Glerup Kristensen, the son of founder Nanny Glerup. It also extended its 2016 contract by 20 tonnes to 100 tonnes.
Glerups, which started as a hobby business by Nanny Glerup in 1993 using wool from her Gotland sheep, now exports about 150,000 pairs of the $189 slippers to 20 countries each year. Its sales are expanding at a 20 to 25 per cent annual pace and it expects to produce between 180,000 to 190,000 of the slippers next year, Kristensen said.
"We are seeing growth in all our markets. We are only scratching the surface and penetrating many of our markets at this moment," he said. "We believe we have high potential."
Glerups switched this year to buying wool from New Zealand farmers rather than on the open market to let it to build long-term relationships with its suppliers and provide it with certainty on the cost and quality of its supply. NZ Merino was able to secure the deal after signing a contract in December last year to manage the wool clip of Landcorp, the state-owned farmer, which wants to improve returns and reduce price volatility by securing agreements with end-use customers.
