2014<\/p>\n
Former All White Tim Brown had been thinking about wool sneakers since 2007. A 2014 Kickstarter campaign<\/a> promised \u201cwool runners: no socks. no smell\u201d. They would be designed in New Zealand by Jamie McLellan and made in Portugal, and $US30,000 was needed to go into production and break even. Thanks to 970 backers, the target of $100,000 was reached in only five days.\u00a0<\/p>\n The sneakers launched on March 1. So did Allbirds\u2019 first fundraising round. Brown was co-founder and co-CEO alongside Joey Zwillinger, an American industrial engineer who invested in the Kickstarter and later joined the company. The company\u2019s focus on sustainability helped it become a certified B Corp in December. Time called<\/a> its sneakers \u201cthe world\u2019s most comfortable shoes\u201d. A pair of the original machine-washable Wool Runners cost NZ$158 and came with a 30-day trial period.\u00a0<\/p>\n The point of difference was a merino upper \u2013 light, breathable and moisture-wicking.<\/p>\n The proprietary fabric was manufactured in Italy by textile company Reda, using wool sourced from NZ Merino in Christchurch. It was then made into sneakers by the brand\u2019s manufacturers in South Korea.<\/p>\n The shoes were only available online from Allbirds. Direct-to-consumer (DTC) brands heralded what felt, at the time, like a transformative new digital era for retail: lower prices, faster dispatch and more flexibility.\u00a0<\/p>\n 2017<\/p>\n Allbirds found fans in venture capital firms and Silicon Valley, enough to warrant a New York Times<\/a> story noting \u201cthis insular world has settled on Allbirds\u201d. Google co-founder Larry Page and one-time Twitter chief Dick Costolo wore them.\u00a0<\/p>\n Celebrities followed suit: Oprah Winfrey, Gwyneth Paltrow, Matthew McConaughey, Jennifer Lopez, Emma Watson, Lady Gaga, Mila Kunis and Hilary Duff. Even \u201cPaul Goldsmith, and Ben Affleck<\/a>\u201d had some.<\/p>\n The brand\u2019s mission was an inspiring one to buy into. Slip-ons, plant-fibre sneakers and children\u2019s shoes \u2013 Smallbirds \u2013 were added to the range and stores were opened in New York and San Francisco.\u00a0<\/p>\n In the wake of the brand\u2019s success, the footwear market saw a boom in stylish, streamlined sneakers \u2013 some of which looked suspiciously like Allbirds. The company sued<\/a> Steve Madden for trade dress infringement, alleging the American footwear giant had copied its distinctive wool shoes. The lawsuit was dropped<\/a> in 2018 after the two companies reportedly<\/a> reached an undisclosed settlement.<\/p>\n Allbirds was spreading its wings. A third store opened in London (an international president, Erick Haskell, was appointed) and the NYC store moved to Soho where \u201cjust a handful<\/a>\u201d of shoes were on display in the 4,800-square-feet space, described<\/a> in detail by The New Yorker.<\/p>\n The brand had sold<\/a> a million pairs of shoes worldwide by 2018. Leonardo DiCaprio had some and he invested in the company. By December the brand had raised US$77.5 million and was valued at $1.4 billion \u2013 \u201cunicorn\u201d status.<\/p>\n Jacinda Ardern gave some Allbirds<\/a> to Australian prime minister Malcolm Turnbull. Republican Paul Ryan was spotted<\/a> wearing a pair too.<\/p>\n Allbirds launched jandals (made from sugarcane) and the Tree Runner sneaker (certified by the Forest Stewardship Council). It collaborated with Shake Shack, Air New Zealand<\/a> and Forest & Bird. The latter saw limited-edition designs inspired by the kea, the 2017 Bird of The Year (kerer\u016b, hoiho and k\u0101k\u0101p\u014d would follow).<\/p>\n 2019<\/p>\n The brand\u2019s influence saw more imitators emerge. In September it filed a trademark infringement claim against Austrian firm Giesswein Walkwaren AG. Amazon also released a shoe \u201cstrikingly similar<\/a>\u201d to the Wool Runner.<\/p>\n Allbirds added a self-imposed carbon tax to its footwear (declining<\/a> to reveal per-shoe numbers) and, though the original Kickstarter campaign said \u201cno socks\u201d, launched carbon-neutral socks<\/a> made from merino and recycled bottles. A new material made from sugarcane, SweetFoam\u00ae, was introduced for midsoles. Trino\u00ae, made from eucalyptus and merino, was developed for apparel. In December Allbirds recertified as a B Corp.<\/p>\n 2020<\/p>\n The Covid years. Everyone was wearing sneakers, sweatpants and shopping online. From the depths of lockdown California, Brown told The Spinoff<\/a> that Allbirds would be publicising the carbon footprints of its shoes and garments, making it the first fashion brand to label all its products. They hoped to reach net zero one day. \u201cThe holy grail is negative impact,\u201d Brown said.<\/p>\n Allbirds was growing. Brown and Zwillinger were reportedly<\/a> earning US$250,000 salaries. Online sales were strong, accounting for 90%<\/a> of its US$219 million revenue. Barack Obama wore the sneakers. The brand kicked off a collaboration with Adidas, created\u00a0merino-blend underwear<\/a> and launched<\/a> a clothing capsule; some yarns were made from the shells<\/a> of Canadian snow crabs, a byproduct of the seafood industry.<\/p>\n 2021<\/p>\n Allbirds and Adidas released their sneaker collab<\/a>, which boasted the lowest carbon footprint either brand had achieved in a shoe to date; 100 pairs were available via raffle. Dipping its toe further into apparel, Allbirds debuted its athleisure collection after two years of development.\u00a0<\/p>\n In April the company made its carbon footprint tool open source<\/a>. Sustainability and manufacturing ethics were front of mind for the industry and the frequent, hype-led drops favoured by other brands were earning criticism<\/a>. <\/p>\n Allbirds drew attention of its own.\u00a0Peta alleged<\/a> the brand\u2019s \u201cclaims regarding sustainability and humane treatment are misleading and wrong\u201d. It inspired a class action lawsuit<\/a> (Dwyer v Allbirds Inc) alleging<\/a> the company \u201cmade misleading claims regarding the environmental impacts of its wool shoes as well as misleading animal welfare claims\u201d.<\/p>\n Businesswise, things looked better<\/a>. Allbirds went public with an initial public offering<\/a> (IPO) in November; during its Nasdaq stock exchange debut<\/a>, shares were issued at US$15 each and reached $27.55, while its market capitalisation hit<\/a> US$3.52 billion. (Claims of being the first \u201csustainable\u201d IPO were dropped<\/a>.)\u00a0<\/p>\n The brand picked up wholesale accounts, including Nordstrom, launched<\/a> resale programme Rurun on its own channels, and invested<\/a> US$2 million in plant-based leather research. Revenue hit a high<\/a> of US$297.8 million\u2026 before dropping. Shares were 90.4% down on the heady days of the IPO in what the Herald\u2019s Chris Keall described it as \u201cannus horribilis<\/a>\u201d for Allbirds.<\/p>\n The athleisure line was discontinued. The love from Silicon Valley was waning too, with the Wall Street Journal reporting<\/a> that the \u201ctech bros\u201d had moved on. Meanwhile growth was slowing<\/a> across the sneaker industry following years of hype.<\/p>\n At least the company\u2019s motion to dismiss Dwyer v Allbirds Inc was granted.\u00a0Forging ahead, Allbirds opened design headquarters in footwear hub Portland and made strategic hires<\/a> from Nike, Adidas, Reebok and Lululemon.<\/p>\n 2023<\/p>\n By the end of the year Allbirds had 45 US stores. It also counted annual losses of US$101.4 million and a sinking share price. Brown moved to the role of chief innovation officer, making Zwillinger the sole CEO. CFO Mike Bufano resigned, replaced by Adidas alumna Annie Mitchell; 21 employees were laid off.<\/p>\n Zwillinger acknowledged post-IPO \u201cmissteps<\/a>\u201d during an earnings call, including over-prioritising products outside the brand\u2019s foundational offering, shifting its focus away from the \u201ccore consumer\u201d.\u00a0<\/p>\n In April a group of Allbirds shareholders filed a consolidated class action lawsuit against the company, its executives and directors. The case (Gennady Shnayder v Allbirds Inc, et al) accused them of securities fraud and misleading investors ahead of the IPO. Defence<\/a> centred on \u201cfraud by hindsight\u201d \u2013 strategic mistakes realised at a later time amid the evolving market and its myriad challenges.<\/p>\n An additional suit<\/a>, filed in August by shareholder Barbara Wolfson, alleged dissemination of \u201cinaccurate financial information, causing a significant stock drop and subsequent securities class actions\u201d. (The case was closed two months later after Wolfson filed a voluntary dismissal)<\/p>\n By July the Wall Street Journal was wondering \u201chow Allbirds lost its way<\/a>\u201d.<\/p>\n 2024<\/p>\n A \u201cchallenging<\/a>\u201d period. New Zealand and Australian distribution was signed over<\/a> to Compendium Group, which took control of retail, staffing, wholesale and \u201call business activity across Australasia\u201d. Globally, a full-year loss of US$152.5 million was reported in March. In April Allbirds received<\/a> a notice of non-compliance from Nasdaq, warning of delisting if share prices didn\u2019t improve. Zwillinger stepped down as CEO, replaced in March by Joe Vernachio. A new CFO was appointed.<\/p>\n In May district judge Araceli Mart\u00ednez-Olgu\u00edn granted<\/a> the company\u2019s motion to dismiss the Gennady Shnayder v Allbirds Inc case, but that was some of the only good news of the year. Revenue fell<\/a> 25.3% in 2024, attributed to low unit sales and closures of underperforming stores. Allbirds\u2019s market capitalisation had slid<\/a> from that 2021 high of US$3.52b to US$4.5 million, a drop of 97%.<\/p>\n There were some highs. The Moonshot Zero, billed as the \u201cworld\u2019s first zero carbon shoe\u201d, was unveiled<\/a>.<\/p>\n Allbirds released<\/a> 500 Moonshot pairs in February. That same month judge Mart\u00ednez-Olgu\u00edn dismissed the class action suit\u2026 again<\/a>. Stanley Tucci was enlisted<\/a> for a video series in March. The Wool Runner NZ was launched in August; it\u2019s a revamped version of the original Wool Runner with more support and a higher price tag.<\/p>\n Meanwhile the company was exploring<\/a> \u201ctactics to handle the escalating tariff costs, including increasing prices\u201d. The San Francisco flagship store was closed in January.\u00a0<\/p>\n The sneaker market continued to show signs of waning. Luxury sneakers \u2013 high-priced footwear from brands like Gucci and Balenciaga \u2013 were<\/a> in decline and losing their \u201cit status\u201d. Speculative sales were slowing<\/a> too. British Vogue declared<\/a> \u201csneakers are out, real shoes are in\u201d, pointing to the adoption of hard-bottom shoes like loafers instead.\u00a0<\/p>\n 2026<\/p>\n January analysis from the Bank of America pointed to a \u201clong-term slowdown<\/a>\u201d for the sportswear and sneakers sector; it may<\/a> signal an end to the casualisation of post-Covid fashion. On the street, however, people are still wearing sneakers. They account for half<\/a> of global footwear sales.<\/p>\n This week Adidas announced<\/a> record revenue for 2025 (though sales dipped<\/a> in North America). New Balance sales are trending upwards. Hoka and On are enjoying demand, while Nike is more challenged<\/a>; last month it cut<\/a> 775 jobs in the US.<\/p>\n On January 28, Allbirds announced<\/a> it was closing all remaining full-priced stores in the US in an effort to streamline operations and support profitability. \u201cBy exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business,\u201d CEO Joe Vernachio said in a statement. By February its global footprint will have shrunk to four company-run stores \u2013 two shops in London, and two American outlet stores \u2013 down from 60 in 2023. (The Auckland store is understood to still be run by<\/a> Compendium Group.)<\/p>\n March will mark 10 years from the launch of the sneaker that started it all. Everyone\u2019s looking back on 2016 fondly while here in 2026, Chris Hipkins wore Allbirds at Waitangi last week.<\/p>\n Allbirds did not respond to The Spinoff\u2019s requests for comment.<\/p>\n","protected":false},"excerpt":{"rendered":"A decade on from those first wool sneakers, let\u2019s trace the road from 2016 to 2026. The San…\n","protected":false},"author":2,"featured_media":274571,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[90156,138,492,42565,111,139,69,644,44967],"class_list":{"0":"post-274570","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-allbirds","9":"tag-business","10":"tag-comments-enabled","11":"tag-footwear","12":"tag-new-zealand","13":"tag-newzealand","14":"tag-nz","15":"tag-retail","16":"tag-sneakers"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/274570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=274570"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/274570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/274571"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=274570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=274570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=274570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The sneakers kicked off, fittingly, on Kickstarter.
\n2016<\/p>\nAllbirds Wool Runners in natural grey and Steve Madden Women\u2019s Traveler Walking Shoe in grey.
\n2018<\/p>\nThe brand branched into apparel and underwear. (Images: Allbirds)
\n2022<\/p>\nThe innovative Moonshot sneaker. (Image: Allbirds)
\n2025<\/p>\nLabour leader Chris Hipkins wore Allbirds on a walkabout with Green co-leader Marama Davidson and M\u0101ori wardens in Waitangi last week (Photo: Jason Dorday\/New Zealand Herald via Getty Images)<\/p>\n