MONTREAL – U.S. tariffs have reshaped Canadian consumer habits, including a dose of patriotism at the cosmetics counter, according to Groupe Marcelle. Canada’s largest cosmetics manufacturer says customers ask about the origins of products before making a purchase, and president David Cape says they should have clear labels that reflect whether products are created in Canada, instead of just focusing on the “Made in Canada” designation. “The fact that our brands are made here in Canada, and the fact that we innovate here in Canada, is something that is interesting to people,” said Cape. “The majority of our consumers are much more aware of where their products are coming from and asking questions about that. “So, it’s a great opportunity for us to be telling our story, where before, it wasn’t so interesting to people,” he added. Marcelle, which pioneered hypoallergenic skincare products, was founded in Chicago, Ill., in 1874. Cape’s grandfather, pharmacist Victor Cape, became the Canadian distributor of the products in 1949. In 1973, he and his son Michael purchased the worldwide distribution and manufacturing rights, moving the production to Montreal. The company added brands Lise Water and Annabelle in the years that followed. David Cape now heads the company and two of his sons are also involved in the family business. It recently opened a new office in Montreal and powered up what it calls a “Montreal Canadian line”: a production line designed and built in town, used in the manufacturing of Canadian products. The cosmetics industry has been hit with tariffs and counter-tariffs, which has hiked the costs of some products for consumers. Marcelle says while there is a dose of uncertainty in the market, for now, the impacts on its costs are limited. “We have been able to kind of hold our prices and not pass that on to consumers,” said Cape. “We want to be able to offer our products at a fair price and not be bouncing around as we see changes in the tariff schemes.” Marcelle ships to the U.S., but its focus is Canadian sales. Its products are distributed in about 3,500 points of service, including many pharmacies. Some of the products it develops are formulated to suit harsh winter conditions and some ingredients are sourced locally. “There is Labrador tea, an ingredient growing naturally in the Boreal forest,” said Groupe Marcelle director of product management Harry Cape. “We are using Chaga mushroom that comes from the Canadian Shield. We are using algae that comes from the Gaspé region.” Some products include perfumes from European fragrance houses or American components, including some packaging. But Cape says 85 cents of every dollar of revenue is spent in Canada. Cape has been pushing the federal government to bring in a “Created in Canada” designation, and that is something officials are now considering. He says “Made in Canada” and “Product of Canada” labels focus on the physical components and final assembly, while there should be a way for the government to also recognize Canadian creation. “Manufacturing is simply the last chapter in a much longer story,” he said. “I think it is important to understand where your product was created, and the innovation and the intellectual property that goes into it. Even though we have to source many things from all over the world because they’re just not made here in Canada, it’s really important that this gets valued by Canadians.” And recognizing creation, he says, is a thing of beauty.
