Canada Goose (clothing)

Canada Goose Inc.
Private
Industry Retail
Founded 1957
Founder Sam Tick
Headquarters Toronto, Ontario, Canada
Key people
Dani Reiss, President & CEO
Products Outerwear
Production output
Toronto, Ontario, Canada
Winnipeg, Manitoba, Canada
Revenue IncreaseC$<300 million (2015)
Owner Bain Capital and others
Number of employees
1,000
Website http://www.canada-goose.com

Canada Goose Inc. is a Canadian manufacturer of Arctic luxury apparel. The company was founded in 1957 by Sam Tick, under the name Metro Sportswear Ltd.[1]

History

Early years (1957–1980)

In 1957, Polish immigrant Sam Tick founded Metro Sportswear Ltd. after spending years working as a cutter in other factories.[2] Metro made woolen vests, raincoats, snowmobile suits, and other functional outerwear before creating down-filled jackets in the early 1970s.[3] In 1972, Tick's son-in-law, David Reiss, joined the company and eventually became CEO. Metro mainly focused on manufacturing custom down-filled coats and heavy-duty parkas for the Canadian Rangers, city police departments, the Ontario Provincial Police, municipal workers, the Ministry of Environment, and the Ministry of Correctional Services.[1]

Developing years (1980–1997)

In the early 1980s, Metro Sportswear expanded to 50 employees and David Reiss purchased the company from Sam Tick. In 1985, its parkas were trademarked "Snow Goose".[2] In the early 1990s, Metro began selling its products in Europe, where the Snow Goose name was already in use, so Metro sold its European products under the name Canada Goose.[1]

Expansion and growth (1997–present)

David Reiss' son, Dani Reiss, joined the company in 1997 and became president and CEO in 2001. At that time, annual sales were around $3 million.

Under Dani Reiss the decision was made to produce only under the name Canada Goose and to continue to manufacture only in Canada rather than outsourcing to Asia, where labor costs were much lower.[1]

The business expanded in the mid-1990s, with sales and revenues increasing from roughly $3 million in 1991 to roughly $17.5 million in 2008,[4] reflecting increased sales of Canada Goose products in Scandinavia since 1998, and in Canada around 2008.

Canada Goose began to expand internationally, and in 2010, it opened an office in Stockholm, Sweden, for its European operations.[5] In 2011, Canada Goose acquired a new plant in Winnipeg, Manitoba, Canada.[6] As global growth continued, Canada Goose moved its Winnipeg operations into a larger facility in 2013.[7] The Canadian Marketing Association named Reiss as its marketer of the year in 2013.[8]

In December 2013, Boston-based private equity firm Bain Capital bought a majority stake in Canada Goose[9] for an estimated $250 million. The deal included a commitment to keep manufacturing in Canada.[8]

In December 2014, Canada Goose opened a showroom and an office in New York City.[10] In January 2015, Canada Goose acquired a second manufacturing facility in Scarborough from a contractor.[11] In November 2015, Canada Goose opened a second factory in Winnipeg significantly increasing its manufacturing capacity.[12] That year the company revenue was reported to be about $200 million.[13] including warm-weather countries such as India and the Middle East.[8]

In November, 2016 the company is preparing for an initial public stock offering.[14]

Product

A number of USAP Canada Goose parkas worn at Observation Hill, Antarctica.

Canada Goose manufactures a wide range of jackets, parkas, vests, hats, gloves, shells and other apparel. Some Canada Goose jackets also use coyote fur on the hoods[3] and are often filled with down which is purchased from Hutterite farmers in rural Canada".[8] Duck down is used for most models. The jackets retail between $600 and $1,275; the "Kensington", its best-selling women’s coat, retails for approximately $745.[10]

In popular culture

The jackets have been worn in several films, including by Nicolas Cage (in National Treasure), Jessica Alba (in Good Luck Chuck) and Kate Beckinsale (in Whiteout).[15] American model Kate Upton appeared on the cover of the 2013 Sports Illustrated Swimsuit edition in a bikini bottom and a Canada Goose parka.[16]

Sponsorships and corporate responsibility

The company sponsors several film festivals including the Berlin International Film Festival, Sundance Film Festival in Utah, and Toronto International Film Festival.

Canada Goose products are also worn by researchers and workers in remote, cold-weather regions. Canada Goose (and Carhartt) supply parkas for participants in the United States Antarctic Program (USAP).[15]

Canada Goose is involved in several environmental and social initiatives, including The Conservation Alliance[17] and Polar Bears International (PBI). As part of its support to PBI, Canada Goose created a custom line of PBI products, including an aviator hat, Expedition Parka and Chilliwack Bomber; $25 from all PBI sales are donated to the non-profit organization devoted to preserving the habitat of polar bears around the world through research and education.[18]

Canada Goose runs a Canada Goose Resource Centre program that offer fabric and materials to Northern Canadians free of charge: Pond Inlet, Iqaluit, Rankin Inlet, and Kuujjuaq. Established in partnership with the North West Company and First Air in 2009, the Canada Goose Resource Centres provide local seamstresses with free fabrics, buttons, zippers, and other supplies to support the traditional practice in Northern Canada of making jackets and clothing for members of the community.[19]

Counterfeiting

There have been a number of incidents in which counterfeit Canada Goose jackets are sold online through fake websites. The counterfeit coats have used fur from dogs or cats rather than coyotes. Instead of duck down, counterfeits use an insulation called "feather mulch", which is a less effective insulator and can include bacteria and mildew.[20] To combat this issue, Canada Goose created a web page enlisting the public's help. In 2011, Canada Goose began sewing holograms into its jackets as proof of authenticity.[21]

In January 2012, Canada Goose launched a lawsuit against International Clothiers in the Federal Court of Canada for trademark infringement. Canada Goose alleged International Clothiers of intentionally designing a logo and positioning it on jackets to mimic the Canada Goose Arctic Program trademark. The International Clothiers product lines in question were the foreign-manufactured Canada Weather Gear and Super Triple Goose.[22] Canada Goose claimed that unfair business practices were used including publishing print advertisements to promote the jackets as Canada Goose products.[23] A settlement was reached in November 2012.[24]

In October 2012, Canada Goose won a legal battle against counterfeiters in Sweden. The District Court of Stockholm, found five individuals jointly and severally guilty of felony fraud, trademark infringement, and customs offenses. The Court sentenced two of the defendants to serve time in prison and also awarded Canada Goose damages of 701,000 SEK (approximately CAD$105,000).[25][26]

As of October 2016, Canada Goose sews a specially designed hologram, showing images which can be seen from various angles, into its jackets. [27]

Criticism

To obtain the fur trim used on many jacket models, coyotes are trapped. Animal rights group PETA object to this activity, and criticized Canadian Prime Minister Justin Trudeau and his family for wearing Canada Goose products in a family Christmas photo because of the use of fur.[28] The company points out that the fur is used for warmth, not decoration, and that many Canada Goose products do not include fur. Canada Goose CEO Dani Reiss has been criticised for repeatedly refusing to meet 11-year-old Jasmine Polsinelli, who wanted Reiss to consider using an alternative to fur.[29]

References

  1. 1 2 3 4 Lorinc, John (17 October 2012). "The Golden Goose". Profit Guide. Retrieved 19 November 2012.
  2. 1 2 Gajo, Patricia (Winter 2012). "Down to business". NUVO. Retrieved 20 November 2012.
  3. 1 2 LaRochelle, Jillian (7 November 2012). "When hell freezes over". MRketplace. Retrieved 19 November 2012.
  4. ESQwire.com
  5. Shaw, Hollie (3 June 2010). "Canada Goose opens European headquarters in Sweden". Financial Post. Retrieved 19 November 2012.
  6. Chippeway, Darrell (6 January 2011). "Canada Goose buys city firm". Winnipeg Free Press. Retrieved 19 November 2012.
  7. Cash, Martin (10 April 2013). "Canada Goose moves into bigger plant in Winnipeg". Winnipeg Free Press. Retrieved 26 April 2013.
  8. 1 2 3 4 Iain Marlow; Sean Silcoff; Susan Krashinsky (December 10, 2013). "Canada Goose sells a majority stake – with a made-in-Canada guarantee". The Globe and Mail.
  9. Gelles, David, "Canada Goose Sells Majority Stake to Bain Capital", The New York Times, December 10, 2013.
  10. 1 2 Stock, Kyle (December 9, 2014). "How Wall Street Puffed Up Sales of $800 Down Parkas". Bloomberg Businessweek.
  11. "Canada Goose acquires 2nd manufacturing plant in Toronto". CBC News. January 13, 2015.
  12. "Poised for expansion, Canada Goose opens 2nd Winnipeg factory". www.cbc.ca. Retrieved 2016-04-05.
  13. Entis, Laura (December 29, 2014). "How Canada Goose Went From Small Outerwear Company to International Luxury Brand". Entrepreneur.
  14. "Is Canada Goose ready to fly on the stock market?". Toronto Star, November 10, 2016, page B1.
  15. 1 2 Robertson, Grant (25 February 2010). "Year of the Goose". The Globe and Mail. Retrieved 23 July 2011.
  16. "Kate Upton rocks Canada Goose for Sports Illustrated swimsuit edition". Canadian Business, Feb 14, 2013 Trevor Melanson
  17. "Member List". The Conservation Alliance. Retrieved 17 September 2011.
  18. "Canada Goose Clothes Are Good For Chilly Days In Winter 2011". Pub Articles. Retrieved 23 July 2011.
  19. "Canada Goose Announces New Resource Center". Inside Outdoor. 8 March 2010. Retrieved 17 September 2011.
  20. "Canada Goose cries foul over fakes". CBC News. 17 December 2010. Retrieved 24 July 2011.
  21. Allard, Jordan (9 August 2011). "Go for the real Goose, says store owner Herb Lash Sr.". The Sault Star. Retrieved 20 November 2012.
  22. "Canada Goose sues competitor over alleged replicas". CBC News. 22 February 2012. Retrieved 20 November 2012.
  23. Henderson, Peter (23 February 2012). "Canada Goose sues rival International Clothiers over winter parka 'rip off'". National Post. Retrieved 20 November 2012.
  24. "Canada Goose settles jacket patent suit with retailer". CBC News. 7 November 2012. Retrieved 20 November 2012.
  25. "Canada Goose wins $105K in Swedish counterfeit case". CBC News. 23 October 2012. Retrieved 20 November 2012.
  26. Marotte, Bertrand (23 October 2012). "Trendy jacket maker Canada Goose claims win in knockoff battle". The Globe and Mail. Retrieved 20 November 2012.
  27. "Canada Goose Hologram Fake vs Real". Couturefashion. 3 October 2016. Retrieved 7 October 2016.
  28. Pearce, Tralee (17 December 2010). "Justin Trudeau's Christmas card controversy". The Globe and Mail. Retrieved 20 November 2012.
  29. Kornelsen, Shannon (31 March 2013). "Is Canada Goose Afraid of Facing an 11-Year-Old Girl?". Huffington Post Canada. Retrieved 7 January 2014.

External links

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