The name swap is effective immediately after an announcement made by the listed company last week on the Unlisted Securities Exchange (USX).
NZM began 30 years ago by merino farmers as an industry organisation and has developed into a sales, marketing and innovation company for merino, halfbred and strong wool.
Now it has a new brand bringing together Zen and the Latin word terra, earth, to represent living in harmony with the land.
Zentera Wool Company chief executive Angus Street said the company had not taken the name change lightly in an 18-month rebranding process and pressed forward to increase the value of the wool clip.
He said this had been based on a data-driven approach as part of a three-year strategic reset to become the worlds leading wool company.
A lot of research and taking in feedback from farmers, customers and brand partners had been carried out before progressing with the new name, he said.
"Nobody embarks on a company rebrand without having a really clear understanding of why, but also a clear understanding of what the purpose will be."
Mr Street said the buying public would make the merino connection with Zentera which would strengthen the link with ZQ certification.
He said the new name was a pivotal shift for the company and for farmers, reflecting the global demand trends shaping the future of wool.
"We have deep roots in New Zealand, and a proud legacy representing the worlds best wool.
"We worked with growers to lead the way on banning mulesing in New Zealand and established the world’s first ethical wool standard with our ZQ certification.
"It’s important that our company name and brand is a true reflection of who we are and what we do.
He said Zentera would build on this to deliver long term value for merino and other wool farmers through evidence-based standards, traceability and generating further demand from global brands.
The new-look Zentera has a history of sourcing wool from Australia for at least 15 years, and South Africa for about a decade, along with working with crossbred farmers supplying strong wool via the company to interior and flooring brand businesses.
"The global markets are changing rapidly, and brands and consumers alike are considering their fibre choices and material mixes more than ever before," Mr Street said.
"We are seeing strong demand for verified natural fibres with environmental performance and transparent supply chains.
"We need to evolve to ensure growers can keep accessing the markets that value their wool," he said.
Wānaka-based merino activewear business Mons Royale New Zealand approved of the change as the largest buyer of merino wool by a New Zealand company.
Co-founder Hamish Acland said they liked the increased consumer focus to add value to brands such as Mons Royale.
To be a leader Zentera needed to step up as more material and ingredient brands were entering the space, Mr Acland said.
All businesses and brands that are consumer facing need to make decisions that sometimes let go of the old and go forward with where they are wanting to go.
Mr Acland said the merino connection would not be lost in the trade name change as the front face of fine wool and its farmers remained strong via ZQ, marketing, farm-to-shop traceability and brands.
Their job now is to connect to the consumer and they will do that directly and then they will do that with their partners and were keen to work with them on that, but it will not happen overnight and will take a good few years to come to fruition.
Mons Royale has grown since being founded in 2009 to now buy 100 tonnes of wool a year.
Mr Street said the industry would see more change in the coming year, with other wool marks and wool standards shifting to meet the ever-changing regulatory environment.
He said Zentera was working with farmers who championed ethical, sustainable and regenerative farm practices to sell certified Zentera Quality (ZQ) and ZQ+ regenerative farming programme (formerly ZQRX) wool to global customers seeking a premium fibre.
"Our wool standards lead the world for transparency and verification," Mr Street said.
"Every bale is accounted for, every claim is backed by evidence, and every outcome can be measured over time.
"This gives brands confidence in their fibre choices and gives growers confidence that their wool is competing in markets where value is recognised and rewarded. This is what sets our wool apart from others," he said.
Mr Street said the company had invested in the new brand with a full understanding of the cost/benefit analysis.
When the company invested in the first ZQ ethical wool standard the value of wool increased, he said.
Competitors had followed with their own certification and Zentera had to differentiate ZQ and bring more value.
One of those ways is having a consumer-facing marque that brands can use to commercialise and extract additional value and justifying paying a higher price and we can flow that down to the growers.
