Kleenex, the brand that is synonymous with facial tissue, is leaving the Canadian marketplace due to intensifying competition and a lack of profitability.
Kimberly-Clark (KMB), the U.S. manufacturer behind Kleenex, said it plans to pull the product from store shelves throughout Canada by the end of August.
Over the last five years, Kimberly-Clark has been in retrenchment mode, closing 10 manufacturing facilities and cutting more than 5,000 workers.
Despite its strong brand, Kleenex only accounts for 1% of the company's net sales. In recent years, Kleenex has faced growing competition from cheaper, generic versions of facial tissue in Canada.
Kimberly-Clark said it plans to continue selling other brands in Canada, including the Cottonelle, Viva, Poise, Depend, Huggies, Pull-Ups and Goodnites brands.
The company will also continue to sell Kleenex professional facial and consumer hand towels within Canada.
Several other high-profile products have been pulled from the Canadian market in recent years, notably Nestle Canada’s Delissio frozen pizzas and Skippy peanut butter.
Kimberly-Clark’s stock is flat over the last 12 months (down 0.29%) and trading at $129.21 U.S. per share.
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