Supriya Ghosh (Editor)

Canada Goose (clothing)

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Industry
  
Retail

Revenue
  
C$<300 million (2015)

Customer service
  
00 1 416-780-9850

Founder
  
Sam Tick

Number of employees
  
1,000

Products
  
Outerwear

Headquarters
  
Toronto, Canada

CEO
  
Dani Reiss (2001–)

Founded
  
1957

Type of business
  
Private

Canada Goose (clothing)

Key people
  
Dani Reiss, President & CEO

Production output
  
Toronto, Ontario, Canada Winnipeg, Manitoba, Canada

Owner
  
Bain Capital and others

Profiles

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. Canada Goose manufactures a wide range of jackets, parkas, vests, hats, gloves, shells and other apparel. Some Canada Goose jackets use coyote fur on the hoods and are often filled with down which is purchased from Hutterite farmers in rural Canada". 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.

Contents

Early years (1957–1980)

In 1957, Polish immigrant Sam Tick founded Metro Sportswear Ltd. after spending years working as a cutter in other factories. Metro made woolen vests, raincoats, snowmobile suits, and other functional outerwear before creating down-filled jackets in the early 1970s. 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.

Developing years (1980–1997)

In the early 1980s, Metro Sportswear expanded to 50 employees. In 1985, David Reiss, Sam Tick's son-in-law, acquired a majority equity stake in the company. In 1985, the company began to produce apparel under its own "Snow Goose" brand. 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.

Expansion and growth (1997–present)

David Reiss' son, Dani Reiss, joined the company in 1997. In 2001, when Dani Reiss succeeded David Reiss as CEO, Canada Goose generated around $3 million in annual revenue, largely through licensing its designs to other companies in the industry.

Under Dani Reiss' leadership, the company discontinued its private label operations and continued to manufacture only in Canada rather than outsourcing to Asia, where labor costs were much lower.

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, 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. In 2011, Canada Goose acquired a new plant in Winnipeg, Manitoba, Canada. As global growth continued, Canada Goose moved its Winnipeg operations into a larger facility in 2013. The Canadian Marketing Association named Reiss as its marketer of the year in 2013.

In December 2013, Boston-based private equity firm Bain Capital acquired a 70% equity stake in Canada Goose at a $250 million valuation. The deal included a commitment to keep manufacturing in Canada. Canada Goose also acquired a factory in the former city of York in Toronto previously owned by Hilroy.

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

In November 2016, the company is preparing for an initial public offering. Canada Goose generated $291 million in revenue and $27 million in profit in 2016; it has $278 million of debt.

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). American model Kate Upton appeared on the cover of the 2013 Sports Illustrated Swimsuit edition in a bikini bottom and a Canada Goose parka. Product placement with celebrities was part of the marketing strategy when it went international in 2010.

In 2016, rapper Lil Uzi Vert released a mixtape featuring a song titled "Canadian Goose".

Canada Goose even uses athletes to promote its products. During Boston Red Sox designated hitter David Ortiz's final trip to Toronto during the 2016 Major League Baseball season, Toronto Blue Jays players José Bautista and Edwin Encarnación each gave Ortiz a custom-made Canada Goose jacket, valued at US$1000. All three players are from the Dominican Republic.

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).

Canada Goose is involved in several environmental and social initiatives, including The Conservation Alliance 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.

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.

Competitors

Moose Knuckles, in addition to making similarly-priced down jackets competing with Canada Goose, is not an exclusive outerwear company as it has fashion-focused products as well. In contrast to Canada Goose's low key advertising which relied heavily on social media, Moose Knuckles has run controversial ads including one mimicking Kate Upton's Sports Illustrated cover where she wore a white Canada Goose Parka.

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. Canada Goose claimed that unfair business practices were used including publishing print advertisements to promote the jackets as Canada Goose products. A settlement was reached in November 2012.

Counterfeiting

Fake Canada Goose jackets are often sold online through counterfeit 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. In addition, the counterfeit logo patch is often poorly sewn, in contrast to its genuine counterpart where the maple leaves are produced in fine detail. 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; the hologram shows images which can be seen from various angles. In addition, Canada Goose reminds consumers that their offerings are only sold via authorized retailers.

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).

Criticism

Animal rights group PETA 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. 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.

References

Canada Goose (clothing) Wikipedia