Brisbane mattress firm sleeps easy after $5m deal with US retail giant

A Brisbane entrepreneur expects his firm to sell 1000 mattresses this financial year after sealing a multimillion-dollar deal with US retail giant Costco.

Solace Sleep chief executive Darren Nelson.

A Brisbane-based bed company has sealed a multi-million dollar deal with US retail giant Costco to supply its range of adjustable mattresses and bases.

Costco, best known for selling everything from giant tubs of gravy, to washing powder in bulk, artificial turf, hearing aids and diamond rings, has signed a $5m deal with Solace Sleep to supply up to 20,000 mattresses and beds annually around Australia.

Solace Sleep chief executive and co-founder Darren Nelson says the deal was 18 months in the making and is expected to return more than $5m to the business in the coming year. Adjustable beds are becoming increasingly popular with people with sleep or back problems.

“The adjustable bed market is growing fast, with a rise of about 30 percent in the last year,” says Nelson. “Most sales are happening in the online space and currently Australians need to choose from unknown brands.”

Nelson says the adjustable beds could be packed in a tighter shipping configuration than traditional beds, making them attractive to online retailers such as Costco

He adds that traditional brands like Sealy and 40 Winks are still predominantly selling through brick and mortar stores, leaving a vacuum online. Solace Sleep will be Costco’s first bundle mattress and base bundle offering

“They’ve never done it before. They sell Sealy mattresses and A H Beard adjustable bases but not the mattresses made that specifically move with the base,” Mr Nelson said.

The company is predicting about 1000 units will be sold this financial year alone. Solace Sleep has prior experience with an American company. In 2015 the company signed a deal with department store Macy’s selling Australian made adjustable beds in-store.

Solace Sleep currently has three warehouses in Queensland and one in Perth, with a fourth warehouse under construction in the Sunshine State.

Solace Sleep chief executive Darren Nelson

BANKING ON IT

Kudos to Peter Lock and the crew at Heritage Bank who are backing an innovative social enterprise for migrants and refugees.

Toowoomba-based Heritage will become a major sponsor of The Mulberry Project, which turns unused farmland into market garden crops grown by migrants and refugees.

Founder and managing director Louise Noble started The Mulberry Project in 2016 when a Congolese friend noticed unused land at the family property in Nobby, and suggested members of the migrant community could use it to grow their traditional crops.

That initial idea has grown into a social enterprise that aims to turn underused land into market gardens and create pathways to careers in farming and food for disadvantaged communities. Heritage Bank chief executive Peter Lock says Toowoomba has a global reputation as a community which cares, particularly for refugees and migrants.

“The Mulberry Project is a very practical way for new migrants and refugees to gain skills and self-esteem, and to contribute in a very positive way to the local community,” says Lock.

Heritage Bank CEO Peter Lock

JIM’S FAREWELL

Brisbane Airport Corp has farewelled one of its most respected executives with Jim Parashos, executive general manager for aviation, taking off for new adventures.

Colleagues organised a knees up at Mrs Brown’s Bar & Restaurant in Newstead this week for the affable Parashos, who has completed a full circle in his career from his early years at Melbourne Airport to a lengthy term at Darwin prior to his most recent role at the BNE head office. City Beat hears Parashos was not only a steady hand but a calming influence between his staff and those further up the pecking order.

Jim Parashos at Brisbane Airport