Aussie wool's surprise move to again sponsor an Italian sailing syndicate after previous criticism

Woolmark, the marketing arm of Australian Wool Innovation, has pulled the surprise move of partnering again with the Luna Rossa Prada Pirelli bid to win the 37^th running of the America's Cup in 2024.

AWI came under intense questioning in federal parliament back in 2021 over its $4.6m sponsorship of the Italian group's bid to win the America's Cup.

Senators claimed it was a waste of precious marketing money at a time when AWI was dipping into its reserves to pay bills.

Woolgrowers in 2021 rebuffed AWI's plea for more funding, voting to maintain a 1.5 per cent levy on wool sales despite AWI's campaign to lift funding to 2pc.

The criticism of the America's Cup involvement was one issue raised as the federal government late in 2021 launched an investigation into AWI's finances.

That report from the National Audit Office is due within months.

The Senate Rural and Regional Affairs and Transport Legislation Committee had claimed it had not received "satisfactory responses" to questions raised during two Senate estimates hearings.

Top of the complaints was the spending of $6.3 million on AWI's struggling online selling platform WoolQ.

"The committee put a number of queries to AWI it had received from key industry stakeholders and levy payers concerning transparency, consultation, and effective governance and performance of AWI," Senator Susan McDonald said.

AWI is a not-for-profit industry organisation which conducts research, development and marketing on behalf of about 60,000 woolgrowers.

Those growers partially fund AWI through a levy but AWI also attracts substantial taxpayer support.

Responding to the request for an audit, an AWI spokesman said the company was independently audited every year.

"The latest independent review of performance conducted on AWI has found it is meeting its requirements for Governance, Collaboration and Research, Development and Extension," a spokesman said at the time.

AWI said it had estimated its sponsorship of the America's Cup entry in the premier sailing race held in New Zealand would provide a 10-fold return in marketing value.

"AWI's distinctive Woolmark logo is on the sails of the Luna Rosa Prada Pirelli team and premium Australian merino wool is a key ingredient of the team's uniform on and off the water," former AWI boss Stuart McCullough said when announcing details of the sponsorship.

"This has been a fantastic opportunity to promote Australian wool in one of the world's most famous sporting events."

Mr McCullough stood down as chief executive officer late in 2021 after 12 years in the top job.

He has stayed with AWI in the newly created position of chief marketing and innovation officer in an overseas posting.

The Nationals' Bridget McKenzie had led the criticism of the America's Cup deal, brandishing pictures of the Italian entry in parliamentary hearings, saying the famous Woolmark logo was hardly visible.

The 37^th America's Cup will be held at Barcelona between August and October 2024.

"We proudly reunite with the Luna Rossa Prada Pirelli team as its official technical partner for the 37th America's Cup," Woolmark said in its promotional material.

"Powered by Merino wool, the world's original performance fibre is the added element for this elite team, kitted out in performance-lead apparel for running, cycling and gym-based training as well as race-day uniforms."

Skipper and team director of Luna Rossa Prada Pirelli, Max Sirena said he was "very pleased Woolmark decided to renew its technical partnership with his team.

"After testing the garments in a wide range of conditions during the last edition of the America's Cup, we discovered the unique properties of Merino wool in terms of elasticity, breathability, comfort, insulation and water resistance."

AWI chief executive John Roberts said the support helped promote wool on a global stage as a 100pc natural fibre which is renewable, biodegradable and recyclable.