Calgary Openings, Closings, and Developments

[timun]

Originally Posted by Weitz

Canadian market and rules must be cost prohibitive.

So what's keeping Scotties and Puffs in business then?

[TheScorpion]

The new McDonald's on 17th is crazy. Rooftop patio!

[calgarygeologist]

I don't know if I haven't been paying enough attention when I drive by or if it just happened recently but the Volley Done is gone. Just an empty lot and a pile of sand.

[Weitz]

Originally Posted by timun

So what's keeping Scotties and Puffs in business then?

You should probably ask them.

[Locke]

Originally Posted by bizaro86

It mostly isn't shipped very far, because a box of kleenex is mostly air. So it fills up a truck/shipping container way before you've maxed out the weight.

Anyway, that's just hearsay, so it could be bogus. Although the source is someone who would reasonably have access to company management. But I also understand why they wouldn't put "the French requirements were a factor in us pulling this product" in the press release even if it's true. The shipping thing is probably a bigger factor and is less controversial so of course you'd lead with that.

Personally, as long as Scotties Supreme are still available I'm good.

It certainly does seem odd that after a Global Pandemic where most of the world was sick for a couple years that they're not making 'enough profit' off of Kleenex?

I mean, between COVID, allergies and most of Canada being on fire I'd have thought Kleenex was making a killing just off me alone.

[topfiverecords]

Originally Posted by timun

So what's keeping Scotties and Puffs in business then?

Snot

[timun]

[jayswin]

Originally Posted by bizaro86

It mostly isn't shipped very far, because a box of kleenex is mostly air. So it fills up a truck/shipping container way before you've maxed out the weight.

Anyway, that's just hearsay, so it could be bogus. Although the source is someone who would reasonably have access to company management. But I also understand why they wouldn't put "the French requirements were a factor in us pulling this product" in the press release even if it's true. The shipping thing is probably a bigger factor and is less controversial so of course you'd lead with that.

Personally, as long as Scotties Supreme are still available I'm good.

Depends who you ship with, but in Canada you're mostly paying by cube (cubic feet)(how much room does each pallet occupy in a trailer) rather than weight. Especially by truckload (full trailer) shipments (3392 cube). You filled the truck, you pay for filling the truck, whether it's 10500lbs or 45000lbs.

So a 2500lb pallet of industrial equipment (107 cube - 48"x40"x96") costs the same as a 450lb pallet of kleenex (107 cube). I highly doubt that has anything to do with anything, in my experience in the industry. Trucking companies know not to lose money on light freight, these days.

[Reggie Dunlop]

Bought some Kleenex tonight, the lotion-coated type, because it's nicer when you've got a bad cold/flu and an irritated schnoz.

[TheScorpion]

I just want to know if Imported Kleenex will become a thing.

[bizaro86]

Originally Posted by jayswin

Depends who you ship with, but in Canada you're mostly paying by cube (cubic feet)(how much room does each pallet occupy in a trailer) rather than weight. Especially by truckload (full trailer) shipments (3392 cube). You filled the truck, you pay for filling the truck, whether it's 10500lbs or 45000lbs.

So a 2500lb pallet of industrial equipment (107 cube - 48"x40"x96") costs the same as a 450lb pallet of kleenex (107 cube). I highly doubt that has anything to do with anything, in my experience in the industry. Trucking companies know not to lose money on light freight, these days.

Right, but from the point of view of Kleenex that makes the freight costs more expensive. They ship 450lbs of kleenex and pay the same cost as a much heavier item going the same place.

Maybe the other way to say that is the value density is low. Ie that pallet of industrial equipment probably sells for a lot more than a pallet of Kleenex, but it costs the same to ship.

So shipping it across the continent makes it harder to make money.

[Locke]

Originally Posted by TheScorpion

I just want to know if Imported Kleenex will become a thing.

Black Market man.

I've loaded up and gotten myself a white van with no windows....

I got the good stuff!

[getbak]

Ha ha. If you go to the Scotties website right now, this message pops up...

Scotties Facial Tissues is Canada’s #1 facial tissue* and has been proudly made in Canada since 1956. As a brand with deep Canadian roots, we’re committed to continue providing Canadians with high-quality facial tissues that meet their needs. Our manufacturing plants in Canada have significant capacity to supply Scotties across the country, which means Canadians can continue to access the facial tissue they rely on.

https://scotties.ca


Already doing a victory lap.

[jayswin]

Originally Posted by bizaro86

Right, but from the point of view of Kleenex that makes the freight costs more expensive. They ship 450lbs of kleenex and pay the same cost as a much heavier item going the same place.

Maybe the other way to say that is the value density is low. Ie that pallet of industrial equipment probably sells for a lot more than a pallet of Kleenex, but it costs the same to ship.

So shipping it across the continent makes it harder to make money.

Yep, sorry I was agreeing with you. Just adding more context from within the industry.

[Fuzz]

Originally Posted by getbak

Ha ha. If you go to the Scotties website right now, this message pops up...

https://scotties.ca

Already doing a victory lap.

They should work on matching Kleenex quality. Scotties=scratchy.

[troutman]

I’ll never call it facial tissue. It’s all Kleenex to me.

[Manhattanboy]

Selling products in Canada is unduly expensive.

I wonder what would happen if bilingual labeling laws were repealed. Would that in and of itself really make a difference for French culture? Of course to sell in Quebec products would need French labels.

[bizaro86]

Originally Posted by Manhattanboy

Selling products in Canada is unduly expensive.

I wonder what would happen if bilingual labeling laws were repealed. Would that in and of itself really make a difference for French culture? Of course to sell in Quebec products would need French labels.

It would probably make a big difference to product availability in Quebec though. Canada is a small market, small enough that some firms pull out rather than deal with this stuff.

If they ended it nationally Anglo Canada would get American choices for more stuff. And many firms would quit producing a French version and just give up on the Quebec market and sell the English version only.

It's a hidden subsidy from the rest of the country to Quebec. We all pay more for goods (and have worse availability) so they can have French packaging.

[BagoPucks]

Interesting point. How can the rest of Canada extract more value from the subsidy provided?

[transplant99]

David Soberman, a professor of marketing at the Rotman School of Management, said Kimberly-Clark had been facing challenges in the facial-tissue market in Canada, which were aggravated by recent inflationary pressures.

The first issue, he said, is that facial tissues are “commodity-like,” which means it’s inherently harder to win over consumers by differentiating the product.

The second, he explained, is that although the company’s market share is nothing to sneeze at, Kleenex is currently not the No. 1 facial tissue in Canada. Kimberly-Clark currently holds 16.2 per cent of market share in branded facial tissue in the country, behind Kruger Products Inc., which owns the Scotties brand, with 35.5 per cent. And it has just a paper-thin lead over Canadian company Irving, owner of the Royale brand, with 15.9 per cent.

Prof. Soberman said that Kruger Products, which is based in Mississauga, has been more active when it comes to corporate sponsorship initiatives in Canada, such as partnering with the Canadian National Women’s Curling Championship, the Scotties Tournament of Hearts.

Finally, he cited the growth of private labels in Canada. Most major retailers such as Costco, Walmart and Loblaws will typically carry one national brand, such as Kleenex, as well as their own brand, which is generally cheaper.

“This has created a very difficult environment for the brand that is not the biggest national brand,” he explained, adding that, when pressured by higher costs, consumers tend to quickly move to generic versions of commodity-like products.

“I think the real issue is that they’ve lost a lot of momentum. It has to do with the nature of the category. It has to do with the growth of private labels, and it has to do with the fact that they’re not No. 1 any more,” he said

https://www.theglobeandmail.com/busi...ly-clark-says/