Garner, N.C.—Ten years ago, Pergo helped revolutionize the North American floor covering industry with the introduction of laminate flooring. Now, with a brand name firmly entrenched in the American consumer’s psyche, the company is launching a collection of hardwood floors under its brand name. Anthony Sturrus, president of Pergo’s North American operations, called this addition “a natural extension” of its core business as well as the “appropriate time” for such an initiative. “For the past one-and-a-half to two years,” he explained, “we’ve spent a great deal of time restructuring our product offerings to make sure our portfolio is competitive. This was especially true at the specialty flooring retailer level and even more so with regard to the smaller dealers across the U.S. in terms of making sure they have access to the same opportunities as their larger counterparts.

“Secondly, Sturrus continued, “since coming to North America 10 years ago and starting the laminate category, Pergo has developed a special relationship with consumers in terms of not just being loyal but trusting in our brand name for quality and style. Research shows they view us as more than just a laminate flooring manufacturer and, in fact, they expect us and permit us to do more.” Indeed, the latest studies indicate more than 40% of American consumers recognize the Pergo name. Göran Bernhoff, president of CEO of the mill’s parent firm, Pergo Group, said this launch “capitalizes on the company’s strong brand position in the U.S. market as well as its marketing and distribution capabilities. By adding wood flooring we provide our customers with a wider choice of flooring products.”

The 16 SKUs consisting of eight colors, which make up the initial Pergo Wood Flooring collection are 3/8-in. thick, engineered construction, and come in widths of 3- and 5-in. Products are made from Northern face Oak and carry a 20-year warranty. Some styles feature beveled edges. Products are produced for Pergo by a North American wood manufacturer. Sturrus said this will not be a run-of-the-mill collection, rather “it will be positioned as the premium hardwood product in Lowe’s. “We have a lot vested in our brand,” he added, “and consumers have come to trust and recognize it to stand for a high level of quality and we do not want to do anything to diminish that status.”

Sturrus noted the launch of Pergo Wood Flooring is specifically a North American strategy and collection has been designed and geared toward homeowners on this side of the Atlantic. “The first initiative is for the U.S. neighboring region,” he said. “We want to gauge response before any additional forays in Europe or other parts of the world.” Unlike many of its competitors who have introduced glue-free wood floor lines, Sturrus said all the products in Pergo’s collection need to be stapled, nailed or glued down. “A glue-free version may be introduced down the line, but for now we wanted to gauge consumer response and interest and make sure the finished goods meet our needs.”

In order to get any kinks out of the system while giving Pergo personnel the necessary experience in selling and marketing wood, the mill is introducing its wood collection in phases. The first part will be to have Pergo Wood Flooring sold exclusively through Lowe’s. “We needed to have some experience in a new category,” Sturrus noted. “This will help us better our service needs and knowledge of the wood category since it is a segment in which the company is just venturing. We’ll be fielding consumer calls on the product and can find out their reactions, wants and needs on a first-hand basis. “Plus,” he added, “it is much easier to service one account—even though it has multiple locations—than to manage a multitude of smaller accounts.” And, since some of Pergo’s laminate floors are already sold through Lowe’s 950 stores across North America, Bernhoff said the addition of wood expands “synergies both in distribution and in logistics.”

Sturrus explained, “all the infrastructure and logistics are in place with Lowe’s, so, while this should not add any cost it will make us more efficient and give us the necessary training when it comes time to expand into the specialty retailer business.” While Pergo is taking a different approach in how it launches its new product offering, it is taking a similar path to what a number of other manufacturers—primarily laminate producers—have been doing in recent years: expanding into other segments of the industry. For example, Alloc, BHK of America and Witex have each added wood to their product mix, and both Shaw Industries and Mohawk Industries first ventured into laminate before adding wood to their hard surface offerings. Sturrus stressed that even though Pergo is branching out for the first time into a new flooring category, the company remains fully committed to the laminate industry. “Laminate was and remains our core; it’s our heritage and we are not going to let it go by the wayside.”