Kleenex Bids Adieu to Chestermere (and all Canadian) Stores

Residents of Chestermere may soon notice a familiar brand missing from their local store shelves: Kleenex tissues.
In a recent announcement, Kimberly-Clark, the U.S.-based manufacturer of the iconic tissue brand, revealed plans to halt its Kleenex consumer facial tissue operations in Canada.
Todd Fisher, Kimberly-Clark’s Canadian Vice-President and General Manager, described the move as a deeply challenging decision. He stated that despite their concerted efforts to tackle multiple challenges in the supply chain, the company had to make this decision to better prioritize other brands in the Canadian market.
Kleenex’s brand influence in Canada is so pervasive that, as Joanne McNeish, an Associate Professor of Marketing at Toronto Metropolitan University, put it, “We don’t call it facial tissue, we call it Kleenex.”
While the brand’s pullout might come as a surprise to many in Chestermere, McNeish sees this move as an outcome of long-term challenges faced by the company. She noted that Kimberly-Clark faced significant layoffs and factory shutdowns in 2018. She also highlighted that facial tissue margins for the company were relatively slim.
Recent economic inflation has not made matters easier for paper product brands. As Lisa Hutcheson, Managing Partner at J.C. Williams Group, observed, the price-sensitive market is tough for companies like Kimberly-Clark, especially when brand loyalty is minimal due to the similarity in products.
However, Kimberly-Clark will not be completely disappearing from Chestermere shelves. They intend to continue offering Kleenex professional facial and consumer hand towel products in Canada. Additionally, their other brands, including Cottonelle, U by Kotex, Huggies, and Depend, among others, will still be available to local consumers.
Kleenex’s decision to step back follows other notable brands like Delissio pizzas and Skippy peanut butter that have also recently departed the Canadian market. However, Hutcheson doesn’t view these departures as a negative reflection on the Canadian market but sees it more as brands adapting to evolving consumer preferences and market pressures.
As Chestermere locals adjust to these changing brand landscapes, Hutcheson’s insights resonate: in challenging economic times, businesses are forced to take tough calls, which can often mean bidding farewell to specific markets.