Allbirds built its reputation on sneakers made from wool and tree pulp—materials no one expected to see in athletic footwear. Now it’s betting on a new story. The latest collection, Remix, uses waste as its foundation.
At first glance, the two models—the Runner and the Cruiser—look like familiar Allbirds styles. The twist is what they’re made of. The uppers come from discarded clothing, and the soles are built from old foam scraps. It’s a straightforward idea: turn landfill-bound waste into shoes people want to wear.
A Company Searching for Its Balance
Allbirds went public in 2021, but its performance since has been rough. Revenue peaked at $297.8 million in 2022, then slid to $189.8 million last year. The company has been cutting costs, shrinking its store count to 21 this year from 43 in 2023.
Leadership has also shifted. In March 2024, Joe Vernachio, formerly COO, stepped into the CEO role. He had helped Mountain Hardwear move from losses to profitability and now faces the same challenge at Allbirds. Alongside him, new chief design officer Adrian Nyman wants to expand the brand’s material palette while keeping sustainability as the core identity.
Selling Shoes in a Different Climate
When Allbirds launched in 2016, climate concerns were high on the public agenda. Consumers were curious about how their shopping habits connected to the planet, and brands like Everlane and Reformation gained traction by leaning into environmental values.
Today, the landscape is tougher. Inflation and economic uncertainty have shifted priorities, and many brands have scaled back their commitments. Nike cut sustainability staff as part of cost reductions. Crocs pushed its net-zero target back a decade.
Allbirds, though, is holding its ground. Nyman argues that the brand can’t abandon its founding principles. His bet is that public attention will swing back to sustainability, and when it does, consumers will look for brands that never wavered.
Recycling Partners Step In
To create Remix, Allbirds partnered with Circ, a textile recycling company that breaks down polyester and cotton into base fibers and spins them into new yarns. For footwear, strength matters more than in apparel. Circ developed long lyocell filaments that mimic synthetic materials but are derived from recycled content.
The soles come from Blumaka, which collects and reuses foam discarded during sneaker production. Unlike older efforts that turned scraps into furniture or playground material, Blumaka closes the loop by turning foam back into soles.
