‘Mushrooms, cactus’: Blundstone puts more plants in boots

The family-owned shoe manufacturer says it wants to double sales in the next five years as it ramps up expansion in North America.

The Blundstone Company joint chif executives Adam Blake and Darryl Wilkes.

Tasmanian boot maker The Blundstone Company has set an ambitious target to double sales in the next five years as sustainability issues become a key driver for innovation – including using more plant-based materials in manufacturing.

The company’s joint chief executives, Adam Blake and Darryl Wilkes, said the firm had “over-achieved” in the first year of its five-year plan, but warned that supply chain challenges and inflation could see consumers paying more if cost pressures continued unabated.

“At a top level, we have set our sights on doubling sales in the next five years. Despite the headwinds, if the brand is in the right space we believe we can do that,” Mr Blake said.

Mr Wilkes said managing shipping deliveries and inflation issues had been “a real challenge”.

“People are getting more used to dealing with the volatility of shipping and supply. A lot of people in this sector have stocked up on materials, so that takes some pressure off. But we have deliveries ready and we can’t get ship bookings and shipping containers,” he said.

“We try to absorb as much of the inflationary cost as we can. It does take a lot of fine management. But ultimately the world is in a spiral upwards and there will come a time when it has to balance out. We are all facing the same issue. We all hoped things would have settled down after Covid but these issues are now a part of day to day business.”

Over the past three years Blundstone has invested in a significant research project with the University of Tasmania’s biomechanics experts, which led to the development of the firm’s safety footwear range known as RotoFlex.

The boot’s lining and laces are made with 100 per cent recycled materials, and the heel grip, insole, and counter stiffener use sustainable raw materials.

The firm is also launching products with Italian boot manufacturer Vibram.

Mr Blake said the evolution of new materials and world-leading technologies has been a game changer in the development of Australian safety boots.

“The sales of RotoFlex have been stronger than we thought. The feedback has been fantastic. At this point most of our focus in terms of selling has been on workwear retail and safety industrial outlets. We have a business development executive who has recently joined our sales team who will take products to mines and other places,” he said.

“ESG will be a key driver for innovation over coming years. Not just recycled and recyclable materials, but plant based materials too. Things like mushroom, cactus and pineapple in soles and upper materials, everything.”

The Blundstone company sells some 2.7 million boots a year in 70 countries but the US is its big growth engine. While it retains a strong market position as a supplier of safety boots to workers in heavy industries, more than 50 per cent of purchases of its products are now being bought by women, especially in North America.

By 2025 it expects the US market – where Blundstone does its own distribution – to generate more than $300m, or 30 per cent, of the group’s revenues, up from the current 20 per cent.

“We are in an incredible position and some of it is due to good management and otherwise good luck. We continued to supply right through Covid because of the partnerships we had in the supply chain. Because we are a high quality and trusted brand and one for outdoors, we were in an incredible spot during Covid,” Mr Wilkes said.

“About 10 per cent of the brand is direct to consumer now. That is a big jump in only a few years. It is building fast. We are still wedded to excellence as a wholesaler and are conscious our business is built with a lot of partners. But the other value of the direct to consumer is what we learn from consumers,” Mr Blake said.

Blundstone is now 100 per cent owned by members of the Cuthbertson family in Tasmania after it was started by the Blundstone family in Hobart in 1870.

Mr Wilkes said the business would continue to be self-funding going forward and had no need for external capital.

“Our position hasn’t changed there. We will be self funding and we will grow in a managed way. Our entire policy and structure is to grow gradually and sensibly,” he said.