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Brands warm to new products as climate change lessens demand for cold weather gear

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Bertrand Cesvet is feeling the heat — and not because of a late-summer hot spell.

The entrepreneur is part of an investment group that bought luxury parka maker Kanuk in May, and while he’s proud to have his hand in the company he calls the Canada Goose of Quebec, he admits that climate change weighs heavily on its future.

“The reality is that cold is not happening anymore,” Cesvet said.

“The group that had Kanuk had bought it eight years before and that was the last time it was -35 C in Quebec. Since then, basically the weather’s been getting warmer and warmer.”

The rising temperatures pose a threat to Kanuk’s flagship product — parkas that can withstand -25 C — and have Cesvet and other retail leaders thinking about how to weatherproof their businesses for a future where extreme heat, flooding and natural disasters could be the norm.

The trio of troubles are expected to dramatically transform how consumers shop in the decades to come, but Mother Nature can be unpredictable, making it hard for retailers to prepare their inventory for weather patterns months and even years in advance.

“The problem is that word, ‘volatility.’ This isn’t a consistent linear change that you can track and plan for,” said Lorna Hall, director of fashion intelligence at trend forecasting firm WGSN.

“You’re going to have a year with a (milder) winter and the next year you’re going to see a snow dump. It may be a really big dump, and it may be slightly out of sync with where you’d have expected to see it.”

For example, many people were caught off guard when last year saw a later start to winter, with milder-than-average conditions in several corners of the country. The situation put a dent in Canadian Tire Corp.’s outerwear, ski and snowboard sales and had many consumers putting off purchases of Canada Goose’s hefty down coats.

Yet Dani Reiss, Canada Goose’s chief executive, refuses to see the company his grandfather Sam Tick founded in 1957 as doomed by weather, preferring instead to characterize climate swings as “a challenge and opportunity.”

“The way to look at it and the way we certainly look at it is that we’re going to make the right sort of apparel that the world and the consumers are looking for as we see these things shift,” he said.

Canada Goose is synonymous with apparel that combats the coldest of colds and even has chilled rooms in many of its stores where customers can test the gear, but in recent years the company warmed to a broader product base.

Now it sells footwear, including sneakers and rain boots, along with pieces designed for windy or wet weather. (Reiss imagines one day expanding into luggage and eyewear, too.)

Peak Performance is similarly preparing itself for more extreme weather patterns, including intense storms and prolonged heat waves.

Marcus Grönberg, general manager for North America at the Swedish activewear purveyor, said the company’s leadership team is briefed annually by environmental experts who share long-term weather outlooks spanning the next 20 or 30 years.

Their insights help the brand, which has been selling in Canada for a decade, select materials and choose styles for forthcoming product lines, Grönberg said in an email. For example, the insights helped the company develop a fabric engineered to be waterproof, windproof and breathable.

WGSN’s Hall has seen other companies experiment with fabrics that offer protection against ultraviolet rays or turn a different colour when a wearer is at risk of extreme heat. She’s even spotted brands selling clothing embedded with fans, making them optimal for people spending prolonged periods in the sun.

At Nobis, a Markham, Ont.-based brand where parkas are the star, much attention is being paid these days to lightweight knits, moisture-wicking apparel and layered pieces that can easily transform for any temperature or weather condition.

“What we’ve seen is, I think, more than ever a demand for obviously adaptable pieces,” said Robin Yates, co-founder of Nobis and a former vice-president of Canada Goose. “The consumers want it all now.”

While some may balk at paying north of $1,000 for a Nobis parka, especially as the winter season shortens, those price tags become a lot more palatable when they’re attached to versatile products that can be worn from late August into April, he said.

“Parkas aren’t going away, but they aren’t giving you that lengthy season that makes sense for the investment,” he said.

Kanuk’s Cesvet has a more pessimistic take. Ask him about heavyweight down jackets and he says, “that’s a market to me that is gone at this point.”

He feels so strongly about the prediction that he’s ruled out dabbling in any extreme cold weather gear for his other company, Psycho Bunny. The menswear and kidswear retailer will instead maintain its focus on polos and graphic tees along with long-sleeved shirts, a new category for the brand.

But at Kanuk, where hefty coats have been the business’s stalwart for decades, the future of cold weather apparel presents a much more existential conundrum that can’t be avoided.

The brand will look to products like lightweight jackets to buoy the business and take an evolved approach to the fashion industry’s traditional cycles.

“It looks now like we have two seasons or three seasons but certainty not four and we are going to have to change the way we speak to consumers, but we’re only at the beginning for that,” he said.

This report by The Canadian Press was first published Sept. 1, 2024.

Companies in this story: (TSX:GOOS)

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Looking for the next mystery bestseller? This crime bookstore can solve the case

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WINNIPEG – Some 250 coloured tacks pepper a large-scale world map among bookshelves at Whodunit Mystery Bookstore.

Estonia, Finland, Japan and even Fenwick, Ont., have pins representing places outside Winnipeg where someone has ordered a page-turner from the independent bookstore that specializes in mystery and crime fiction novels.

For 30 years, the store has been offering fans of Agatha Christie’s Hercule Poirot or Arthur Conan Doyle’s Sherlock Holmes a place to get lost in whodunits both old and new.

Jack and Wendy Bumsted bought the shop in the Crescentwood neighbourhood in 2007 from another pair of mystery lovers.

The married couple had been longtime customers of the store. Wendy Bumsted grew up reading Perry Mason novels while her husband was a historian with vast knowledge of the crime fiction genre.

At the time, Jack Bumsted was retiring from teaching at the University of Manitoba when he was looking for his next venture.

“The bookstore came up and we bought it, I think, within a week,” Wendy Bumsted said in an interview.

“It never didn’t seem like a good idea.”

In the years since the Bumsteds took ownership, the family has witnessed the decline in mail-order books, the introduction of online retailers, a relocation to a new space next to the original, a pandemic and the death of beloved co-owner Jack Bumsted in 2020.

But with all the changes that come with owning a small business, customers continue to trust their next mystery fix will come from one of the shelves at Whodunit.

Many still request to be called about books from specific authors, or want to be notified if a new book follows their favourite format. Some arrive at the shop like clockwork each week hoping to get suggestions from Wendy Bumsted or her son on the next big hit.

“She has really excellent instincts on what we should be getting and what we should be promoting,” Micheal Bumsted said of his mother.

Wendy Bumsted suggested the store stock “Thursday Murder Club,” the debut novel from British television host Richard Osman, before it became a bestseller. They ordered more copies than other bookstores in Canada knowing it had the potential to be a hit, said Michael Bumsted.

The store houses more than 18,000 new and used novels. That’s not including the boxes of books that sit in Wendy Bumsted’s tiny office, or the packages that take up space on some of the only available seating there, waiting to be added to the inventory.

Just as the genre has evolved, so has the Bumsteds’ willingness to welcome other subjects on their shelves — despite some pushback from loyal customers and initially the Bumsted patriarch.

For years, Jack Bumsted refused to sell anything outside the crime fiction genre, including his own published books. Instead, he would send potential buyers to another store, but would offer to sign the books if they came back with them.

Wendy Bumsted said that eventually changed in his later years.

Now, about 15 per cent of the store’s stock is of other genres, such as romance or children’s books.

The COVID-19 pandemic forced them to look at expanding their selection, as some customers turned to buying books through the store’s website, which is set up to allow purchasers to get anything from the publishers the Bumsteds have contracts with.

In 2019, the store sold fewer than 100 books online. That number jumped to more than 3,000 in 2020, as retailers had to deal with pandemic lockdowns.

After years of running a successful mail-order business, the store was able to quickly adapt when it had to temporarily shut its doors, said Michael Bumsted.

“We were not a store…that had to figure out how to get books to people when they weren’t here.”

He added being a community bookstore with a niche has helped the family stay in business when other retailers have struggled. Part of that has included building lasting relationships.

“Some people have put it in their wills that their books will come to us,” said Wendy Bumsted.

Some of those collections have included tips on traveling through Asia in the early 2000s or the history of Australian cricket.

Micheal Bumsted said they’ve had to learn to be patient with selling some of these more obscure titles, but eventually the time comes for them to find a new home.

“One of the great things about physical books is that they can be there for you when you are ready for them.”

This report by The Canadian Press was first published on Sept. 15, 2024.



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Labour Minister praises Air Canada, pilots union for avoiding disruptive strike

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MONTREAL – Canada’s labour minister is praising both Air Canada and the union representing about 5,200 of its pilots for averting a work stoppage that would have disrupted travel for hundreds of thousands of passengers.

Steven MacKinnon’s comments came in a statement shared to social media shortly after Canada’s largest air carrier announced it had reached a tentative labour deal with the Air Line Pilots Association.

MacKinnon thanked both sides and federal mediators, saying the airline and its pilots approached negotiations with “seriousness and a resolve to get a deal.”

The tentative agreement averts a strike or lockout that could have begun as early as Wednesday for Air Canada and Air Canada Rouge, with flight cancellations expected before then.

The airline now says flights will continue as normal while union members vote on the tentative four-year contract.

Air Canada had called on the federal government to intervene in the dispute, but Prime Minister Justin Trudeau said Friday that would only happen if it became clear no negotiated agreement was possible.

This report from The Canadian Press was first published Sept. 15, 2024.

Companies in this story: (TSX:AC)

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As plant-based milk becomes more popular, brands look for new ways to compete

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When it comes to plant-based alternatives, Canadians have never had so many options — and nowhere is that choice more abundantly clear than in the milk section of the dairy aisle.

To meet growing demand, companies are investing in new products and technology to keep up with consumer tastes and differentiate themselves from all the other players on the shelf.

“The product mix has just expanded so fast,” said Liza Amlani, co-founder of the Retail Strategy Group.

She said younger generations in particular are driving growth in the plant-based market as they are consuming less dairy and meat.

Commercial sales of dairy milk have been weakening for years, according to research firm Mintel, likely in part because of the rise of plant-based alternatives — even though many Canadians still drink dairy.

The No. 1 reason people opt for plant-based milk is because they see it as healthier than dairy, said Joel Gregoire, Mintel’s associate director for food and drink.

“Plant-based milk, the one thing about it — it’s not new. It’s been around for quite some time. It’s pretty established,” said Gregoire.

Because of that, it serves as an “entry point” for many consumers interested in plant-based alternatives to animal products, he said.

Plant-based milk consumption is expected to continue growing in the coming years, according to Mintel research, with more options available than ever and more consumers opting for a diet that includes both dairy and non-dairy milk.

A 2023 report by Ernst & Young for Protein Industries Canada projected that the plant-based dairy market will reach US$51.3 billion in 2035, at a compound annual growth rate of 9.5 per cent.

Because of this growth opportunity, even well-established dairy or plant-based companies are stepping up their game.

It’s been more than three decades since Saint-Hyacinthe, Que.-based Natura first launched a line of soy beverages. Over the years, the company has rolled out new products to meet rising demand, and earlier this year launched a line of oat beverages that it says are the only ones with a stamp of approval from Celiac Canada.

Competition is tough, said owner and founder Nick Feldman — especially from large American brands, which have the money to ensure their products hit shelves across the country.

Natura has kept growing, though, with a focus on using organic ingredients and localized production from raw materials.

“We’re maybe not appealing to the mass market, but we’re appealing to the natural consumer, to the organic consumer,” Feldman said.

Amlani said brands are increasingly advertising the simplicity of their ingredient lists. She’s also noticing more companies offering different kinds of products, such as coffee creamers.

Companies are also looking to stand out through eye-catching packaging and marketing, added Amlani, and by competing on price.

Besides all the companies competing for shelf space, there are many different kinds of plant-based milk consumers can choose from, such as almond, soy, oat, rice, hazelnut, macadamia, pea, coconut and hemp.

However, one alternative in particular has enjoyed a recent, rapid ascendance in popularity.

“I would say oat is the big up-and-coming product,” said Feldman.

Mintel’s report found the share of Canadians who say they buy oat milk has quadrupled between 2019 and 2023 (though almond is still the most popular).

“There seems to be a very nice marriage of coffee and oat milk,” said Feldman. “The flavour combination is excellent, better than any other non-dairy alternative.”

The beverage’s surge in popularity in cafés is a big part of why it’s ascending so quickly, said Gregoire — its texture and ability to froth makes it a good alternative for lattes and cappuccinos.

It’s also a good example of companies making a strong “use case” for yet another new entrant in a competitive market, he said.

Amid the long-standing brands and new entrants, there’s another — perhaps unexpected — group of players that has been increasingly investing in plant-based milk alternatives: dairy companies.

For example, Danone has owned the Silk and So Delicious brands since an acquisition in 2014, and long-standing U.S. dairy company HP Hood LLC launched Planet Oat in 2018.

Lactalis Canada also recently converted its facility in Sudbury, Ont., to manufacture its new plant-based Enjoy! brand, with beverages made from oats, almonds and hazelnuts.

“As an organization, we obviously follow consumer trends, and have seen the amount of interest in plant-based products, particularly fluid beverages,” said Mark Taylor, president and CEO of Lactalis Canada, whose parent company Lactalis is the largest dairy products company in the world.

The facility was a milk processing plant for six decades, until Lactalis Canada began renovating it in 2022. It now manufactures not only the new brand, but also the company’s existing Sensational Soy brand, and is the company’s first dedicated plant-based facility.

“We’re predominantly a dairy company, and we’ll always predominantly be a dairy company, but we see these products as complementary,” said Taylor.

It makes sense that major dairy companies want to get in on plant-based milk, said Gregoire. The dairy business is large — a “cash cow,” if you will — but not really growing, while plant-based products are seeing a boom.

“If I’m looking for avenues of growth, I don’t want to be left behind,” he said.

Gregoire said there’s a potential for consumers to get confused with so many options, which is why it’s so important for brands to find a way to differentiate themselves, whether it’s with taste, health, or how well the drink froths for a latte.

Competition in a more crowded market is challenging, but Taylor believes it results in better products for consumers.

“It keeps you sharp, and it forces you to be really good at what you’re doing. It drives innovation,” he said.

This report by The Canadian Press was first published Sept. 15, 2024.



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