Kruger Products speaks to TWM about its last year in business, building broad top-line growth, and developing organisational capability and culture to drive future growth.
When TWM last interviewed Dino Bianco, Chief Executive Officer of Kruger Products, the company had embarked on a series of strategic investments to fuel growth across Canada and the US. Since the North American special report in August 2023, now in August 2024 Bianco says to TWM that these investments permitted the company to deliver “strong volume and operational efficiency.” The investments and innovations in its product lines have enabled Kruger Products, the leading tissue manufacturer in Canada, to position itself as a premier asset in North America, driving broad top-line growth across its portfolio.
“The last year has been characterised by strong agility and resilience despite an uncertain economic environment,” says Bianco. “The growth has been propelled largely by our new Sherbrooke plant that features Canada’s most modern TAD tissue machine and our ongoing investment in a diverse catalogue of Canadian-made brands, motivated by our mission to make everyday life more comfortable for our customers, consumers, and communities.”
In February 2024, the facial tissue converting line that is part of the Sherbrooke Expansion Project started up successfully. The LDC paper machine that will be housed in the same plant as the new facial tissue converting line is scheduled to start up in the fourth quarter. With this new paper machine, Bianco says Kruger Products will be more dependent on internal paper and able to reinforce its position as a major hub for the North American market.
In March 2024, the company also announced a major increase in its production of Scotties facial tissues at its Richelieu Plant in Gatineau, Québec, with an investment of $14.5m. The new facial tissue converting lines in Gatineau and Sherbrooke will increase its annual facial tissue capacity by 2.2m cases and it bolsters the overall capacity of the 10 plants in North America as a significant supplier of facial tissue products to the market.
In August 2023, the company launched the Scotties “Here to Stay” campaign and, this summer, the “call us by our name” campaign, a tongue-in-cheek campaign that trains Canadians to use the brand name, Scotties, when they are looking for a tissue.
Reinforcing a commitment to the product, Bianco says the Scotties line features “its best products yet” with Scotties Ultra Soft and Scotties Ultra Soft “with Lotion,” which is enhanced with Aloe and Vitamin E. Produced at the new Sherbrooke plant, the new products are made with premium 3-ply cushiony layers that are hypoallergenic and dermatologist-tested.
With a view to creating a circular economy aligning with the company’s sustainability goals, Kruger Products also plans to roll out further investment that will collect and repurpose tissue production residues. The residues will be re-pulped for the manufacture of other projects, an initiative that is expected to be completed in June 2025. Bianco adds that the business has remained focused on its sustainability goals by responding to consumer needs with the Bonterra 9Roll Bathroom Tissue. The latest Bonterra facial tissue offering is 3-ply, FSC-certified, and packaged in plastic-free, 100% recycled – and recyclable – cartons.
There have also been substantial changes in the North American tissue market over the last year. The tissue market has faced “increasing headwinds,” Bianco says, including the rising cost of pulp: “From a margin management standpoint, we recently announced a price increase in our Consumer segment to mitigate escalating pulp prices. This pricing adjustment, along with other productivity initiatives will ensure that we continue to drive profitable growth,” he adds.
For the immediate future, the company has major investments in marketing on the horizon with fresh brand campaigns going to market later this year.
company’s “best products yet”
