Adidas cancels All Black party

Adidas' public relations disaster spiralled further out of control last night, with the global sport giant cancelling a glitzy party tonight to celebrate the All Blacks.

Hundreds of people, including sports stars and celebrities, were invited to the "Black is Beautiful" event at a venue in Britomart in downtown Auckland.

But adidas has postponed the party in "light of serious customer issues currently before us".

The move followed the appearance on TV of two senior executives to front the growing controversy over the price of the new All Black jerseys.

Australasian head Greg Kerr and country manager David Huggett apologised on Close Up for the distraction of the saga - but maintained the company would not lower the price.

Later, in a statement, Mr Huggett said adidas had decided to postpone the party in "light of serious customer issues currently before us".

"We are sorry to have to take this step at this time, but we believe it is appropriate that we focus our attention on dealing with these business issues. This decision in no way lessens our passionate support for New Zealand rugby and sport in New Zealand at every level."

The postponement came on the same day Prime Minister John Key suggested adidas "stop digging" over the jersey price.

Mr Kerr told Close Up: "We believe our wholesale pricing is absolutely fair and reasonable. What happens in the retail landscape, ultimately the retailer will decide."

He said adidas had control only over a suggested retail price, and it was up to retailers to choose a final selling price.

Mr Huggett cited a fluctuating NZ dollar as one of the reasons the jersey was cheaper in the US and Britain.

"The one thing we've got to consider when we look at prices here and prices offshore is our investment into grassroots rugby, our investment into the retail landscape, and we invest significant amounts of money here that we don't invest in other parts [of the world]."

Mr Kerr admitted there was "some brand damage".

The company's attempts at damage control will continue today, when Mr Kerr holds crisis talks with NZ's largest sports retailer, Rebel Sport.

The meeting comes after the chain criticised adidas for its pricing.

The retailer has knocked $50 off the price of the World Cup replica jersey, taking it to $170, and the standard All Blacks replica jersey is now $30 cheaper at $149.50.

The jerseys are still far cheaper if bought online from overseas sellers.

Yesterday, the PM stepped into the debate to say New Zealanders wanted to wear the jersey and were offended it could be bought cheaper online.

"I've always found when you're in the hole, you should stop digging."

Mr Key said adidas seemed to be selling to one market at a different price from that in another.

"Now Rebel Sport have taken the view they're going to eliminate their margin to effectively negate that. I guess it's a matter for adidas to make peace [with its customers].

"But I think it's a shame that the New Zealand public are getting caught up in the middle of all this."

The crisis talks between Mr Kerr and Rebel Sport head Rod Duke are sheduled to happen at the retail chain's head office.

Mr Duke said he had nothing in particular he wanted to ask adidas.

"Don't hold your breath that they'll present any good news. But they might have good news - they might have appointed a new PR company."

The Rugby Union yesterday voiced its support for adidas. Chief executive Steve Tew said adidas didn't tell the union how to play rugby, and he didn't tell it how to price its goods.

He accepted the firm's brand might have been damaged, but he would stick by adidas "through thick and thin".

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