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Kleenex exiting Canadian market - other brands have done the same
Posted on 8/28/23 at 1:16 pm
Posted on 8/28/23 at 1:16 pm
Article Link
Assume we will see some brands do the same for California eventually. My previous company opted to just license the brand in California rather than deal with the insanity.
9
Posted on 8/28/23 at 1:19 pm to concrete_tiger
quote:
the insanity.
What insanity? Genuine question.
Posted on 8/28/23 at 1:20 pm to concrete_tiger
Should I be outraged or happy about this?
Posted on 8/28/23 at 1:22 pm to concrete_tiger
Is it an environmental issue in terms of making the tissues?
Posted on 8/28/23 at 1:22 pm to concrete_tiger
What will the teenage girls use to stuff their bras now?
Posted on 8/28/23 at 1:23 pm to concrete_tiger
The article didn’t do a good job of explaining why this was happening.
Posted on 8/28/23 at 1:24 pm to HempHead
Yeah, I’m wondering too. Read the article. It was long on words, but never came out and gave a specific reason. Not surprising since there are few real journalists around.
Posted on 8/28/23 at 1:25 pm to HempHead
quote:
What insanity? Genuine question.
Too much competition in the market. Retailers can buy the knock offs for half the price, sell for right under the Kleenex price, and put the extra profit in their pockets.
Retailers will sell the same quantity of tissue, but now at 60% profit instead of 25-30% profit.
quote:
Winder said he believes the company is discontinuing its Kleenex facial tissues in Canada because private label products, which are products that a retailer gets produced by a third-party but sells under its own brand name, have taken a bigger share of the market in recent years.
“Over the last several decades, retailers have done a great job of creating private label tissues,” he said.
“Maybe the volume of Kleenex has dropped off … due to private label sales eating their lunch a bit. And maybe it's not economical now to do the production runs of Kleenex.”
https://www.ctvnews.ca/business/why-are-kleenex-tissues-leaving-canada-retail-analyst-weighs-in-1.6535251#:~:text=Winder%20said%20he%20believes%20the,the%20market%20in%20recent%20years.
This post was edited on 8/28/23 at 1:27 pm
Posted on 8/28/23 at 1:26 pm to HempHead
quote:
What insanity?
Litigation at every corner.
Entire industry of lawyers exist to shake down corporations. Checkout asyousow for reference.
They walk store aisles, pick a victim... inform the company about pending lawsuit and work towards a settlement. The average settlement was near $100k a couple years ago, it's probably well over that now.
They will get judgements/consent decrees written that are a compliance nightmare, and will monitor it closely.
Imagine having thousands of SKUs to manage. And that's just on the product side. Nevermind operations, labor, trucking, taxes, etc etc.
Prop 65 compliance was a PITA. At first they required very specific labeling on products based on the components, and if your manufacturing occurred in multiple locations (we had over 50 locations), you now had to maintain a separate inventory for California or completely re-do all packaging, toss packaging, or even potentially overlabel every single one.
They revised the label requirements to allow more broad categorization of the type of "threat" the product posed, but the label is still required nonetheless.
Posted on 8/28/23 at 1:26 pm to concrete_tiger
They made it sound like supply chain issues. Companies were backing out long before the China Virus. I imagine that all of the profits getting eaten up by regulations and taxes is the real reason. If they were making fat cash, they could tolerate the bullshite.
Posted on 8/28/23 at 1:27 pm to Shexter
So they're selling a cheaper brand or does theirs say Kleenex also?
Posted on 8/28/23 at 1:28 pm to SloaneRanger
quote:
Yeah, I’m wondering too. Read the article. It was long on words, but never came out and gave a specific reason. Not surprising since there are few real journalists around.
Journalism is such a joke of a profession.
Posted on 8/28/23 at 1:30 pm to Shexter
quote:
Too much competition in the market. Retailers can buy the knock offs for half the price, sell for right under the Kleenex price, and put the extra profit in their pockets.
Retailers will sell the same quantity of tissue, but now at 60% profit instead of 25-30% profit.
I'm all for it. Then hopefully a knockoff of a knockoff comes around and retailers sell that one just under the price of the OG knockoff.
Posted on 8/28/23 at 1:34 pm to LEASTBAY
quote:
So they're selling a cheaper brand or does theirs say Kleenex also?
My understanding is they are talking about the "store brands" that are growing every year.
Think "HEB Brand" spaghetti sauce or most famously "Kirkland's" from Costco.
Posted on 8/28/23 at 1:36 pm to OU Guy
quote:
What will the teenage girls use to stuff their bras now?
Member's Mark
Posted on 8/28/23 at 1:39 pm to OU Guy
quote:That's nothing compared to all the extra socks that will have to be washed.
What will the teenage girls use to stuff their bras now?
Posted on 8/28/23 at 1:51 pm to concrete_tiger
quote:
Litigation at every corner.
I would say this is incorrect, while Canada does require separate packaging/French labelling that is typically not as large of a factor as the reality of shipping across Canada.
Currently there are a few hubs to ship through but Canada is so spread out that it makes for razor thin margins on some products. Then take into account the perceived consumer different between Kleenex and store brand (little to none) and it very quickly becomes difficult to maintain a presence in Canada.
Canada has very few grocery chains which I would say almost have an oligopoly stranglehold on the market and have really been putting the screws to both consumers and suppliers the last few years. (Canada is basically just 3 or 4 oligopolies in a trench coat but I’ll save that discussion for another time).
American brands leaving has been very common in Canada even before the pandemic and now chains like Starbucks are starting to pull out too.
Posted on 8/28/23 at 1:58 pm to LEASTBAY
quote:
does theirs say Kleenex also?
It's close enough, ammiright?
Posted on 8/28/23 at 2:04 pm to concrete_tiger
I just snot rocket Jared Jones style. This doesn’t affect me.
Posted on 8/28/23 at 2:20 pm to Shexter
quote:
Too much competition in the market. Retailers can buy the knock offs for half the price, sell for right under the Kleenex price, and put the extra profit in their pockets.
Retailers will sell the same quantity of tissue, but now at 60% profit instead of 25-30% profit.
Unless they are stealing intellectual property or obfuscating the branding, there's nothing insane about this.
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