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Kimberly-Clark pulling Kleenex tissues from store shelves in Canada

The company made cuts in 2018 that resulted in more than 5,000 workers leaving the company
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Boxes of Kleenex tissues are seen on a store shelf in Montreal, Friday, August 25, 2023. U.S. manufacturer Kimberly-Clark says its Kleenex consumer facial tissue business is leaving Canada this month. THE CANADIAN PRESS/Christinne Muschi

Canadians soon wonB次元官网网址檛 find Kleenex tissues on store shelves.

The Kleenex consumer facial tissue business is leaving Canada this month, U.S. manufacturer Kimberly-Clark said in a statement Friday (Aug. 25).

Todd Fisher, the companyB次元官网网址檚 Canadian vice-president and general manager, characterized the decision as B次元官网网址渋ncredibly difficultB次元官网网址 but necessary because of several headwinds Kimberly-Clark is facing.

B次元官网网址淲e have been operating in a highly constrained supply environment, and despite our best efforts we have been faced with some unique complexities on the Kleenex business,B次元官网网址 he said.

B次元官网网址淭his decision is one that will allow us to shift our resources to better focus on other brands in Canada and meet the needs of our consumers with continued innovation and value.B次元官网网址

The Kleenex brand is so strong that its name has become synonymous with tissue products.

B次元官网网址淲e donB次元官网网址檛 call it facial tissue, we call it Kleenex,B次元官网网址 said Joanne McNeish, an associate professor of marketing at Toronto Metropolitan University.

Yet she doesnB次元官网网址檛 find the discontinuation a complete surprise.

B次元官网网址淭heyB次元官网网址檝e been in trouble for quite a while and COVID was sort of a bit of a redemption in terms of revenue,B次元官网网址 she said, referencing the onset of the crisis, when people were stockpiling toilet paper.

B次元官网网址淏ut truly, theyB次元官网网址檝e been on their way to do this for a while.B次元官网网址

McNeish pointed to cuts the company made in 2018 that resulted in more than 5,000 workers, or roughly 12 per cent of staff, leaving the company and 10 factories closing.

At the time, facial tissue margins were reported to be low and only accounted for one per cent of the companyB次元官网网址檚 net sales, she said.

More recently, stubbornly high inflation has only exacerbated matters.

B次元官网网址淭he lowest price seems to be winning right now,B次元官网网址 said Lisa Hutcheson, managing partner at consulting firm J.C. Williams Group.

ThatB次元官网网址檚 particularly troublesome for companies in the paper products market, where consumers tend to have little brand loyalty because items seem so similar and promotions are frequent, McNeish and Hutcheson said.

The move away from selling Kleenex tissues to Canadian consumers will let the company focus on its slew of other brands, including several that remain unscathed for now.

Kimberly-Clark will continue to sell Kleenex professional facial and consumer hand towel products in Canada.

The Cottonelle, Viva, U by Kotex, Poise, Depend, Huggies, Pull-Ups and Goodnites brands also remain unaffected.

The discontinuation of Kleenex consumer tissues in Canada comes on the heels of several other high-profile product departures.

Nestle Canada announced in February that frozen pizzas and meals from its Delissio, StoufferB次元官网网址檚, Lean Cuisine and Life Cuisine brands would disappear from stores this year.

Skippy peanut butter left the country in 2017, while BuglesB次元官网网址 cone-shaped corn snacks and Little Debbie dessert cakes were gone last year.

Hutcheson didnB次元官网网址檛 see the confluence of departures as a sign of Canada being a less-desirable market.

B次元官网网址淏rands are always looking about at consumer preferences,B次元官网网址 she said.

But one thing she noticed all of the departed brands have in common is that they have faced pricing pressure from house brands operated by grocers and other big retailers, which often charge less for essentials than their name brand rivals.

She said, B次元官网网址淚 think in times of inflation and when sales are struggling, everything gets scrutinized and that may include pulling out of certain markets.B次元官网网址

Tara Deschamps, The Canadian Press





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