Chairman and Chief Executive Officer, Canada Goose Holdings Inc.
Canadian Club - Dani Reiss
Join us as we host Dani Reiss, in conversation with Jodi Butts, and learn more about Canada Goose’s bold plans for global growth and a sustainable future. Dani will share insights into Canada Goose’s journey from family-owned origins to dynamic global luxury brand establishing industry leading standards, producing category defining products, and engendering deep customer loyalty. From the pandemic, to social justice, to the environment – the world is collectively bearing witness to critical change. Dani will offer perspectives into how Canada Goose has addressed change as a constant variable i...
About Dani Reiss
In March 2020, Dani Reiss, President and CEO of Canada Goose, stated that the company was retooling its manufacturing facilities in Toronto and Winnipeg to produce personal protective equipment (PPE) such as scrubs and patient gowns for Canadian hospitals. Reiss said the company had the capacity to make tens of thousands of units per day and would do so for as long as necessary, adding that "the number one priority is to give back and to support Canada through this." Reiss also stated that Canada Goose had laid off many employees, and that he had contributed his entire base salary to a fund established to support employees. He noted that other employees who remained working had also begun contributing their salaries to this fund. Reiss described the company's actions as setting "a great example for what great community engagement can look like."
Transcript (45 segments)
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Narrator0:42
Our club has always been a forum for public figures, thought leaders, and decision makers to share their ideas. Here we offer access to dynamic political, business, and public personalities. We are dedicated to encouraging debate on the issues that matter to the city, this province, and this country. The Canadian Club is one of the most important podiums anywhere in the world that a Canadian can speak to, to tell Canadians what it is that they think and develop those thoughts. So I want to thank you for that very much. Please join me in thanking our esteemed panelists today. Through our programs and events, including our youth and young leaders programs, our diversity partnerships, our joint events, and our media and social media opportunities, we offer you access to dynamic political, social, and business figures from abroad and right here at home. The platform from which the eloquence of Canada has flowed all of that time whether it be business, education, politics, sports, arts, and culture. If someone wants to say something to Canadians about this country and about the future of this country, this is the venue you choose.
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David Simmons2:08
Good afternoon members and guests. My name is David Simmons. I'm president of the Canadian Club and your host for today. Our 125th anniversary year has brought profound change for us. We adapted to the realities of a global pandemic because we knew our members and guests wanted connection and engagement and to be in the same room again. So we're here. We're also live with several guests joining us online. We want to thank you for your ongoing support of the club and we're glad that you're able to join us through your medium of choice. For those of you joining us virtually, please engage with us on social media. Hashtags are on the table and on the screen as well. Canada Goose has a broader purpose in keeping us warm. Its commitment to sustainability takes many forms including strengthening communities, protecting planet earth, as well as our polar bears. Danny Reiss will provide us with key insights about Canada Goose's success in retail and in sustainability. Please use the Q&A card found on your table if you have questions for Danny. We'll collect them and our moderator Jody will help integrate them into the conversation. For those of you joining us remotely, you can hit the submit a question button on your screen. The sooner the better. Let me take a moment to acknowledge today's event sponsors: Cadillac Fairview and EY. Thank you to Saheed and Monica for being here today. It's because of our sponsors we're able to continue to operate and welcome guests like Danny and Jody. Round of applause for our sponsors. Now allow me to formally introduce our guest. As chairman and chief executive officer, Danny's played a central role in developing Canada Goose into a global consumer brand backed by a world-class team of senior business leaders. I also see many of them in the room. As CEO, he's a staunch champion for made in Canada manufacturing and has been recognized for his unwavering passion for authenticity and bringing more of Canada to the world. Danny's been recognized as Canada's most admired CEO in 2020, awarded Global Visionary of the Year by the Global Males Report on Business in 2019. He was appointed a member of the Order of Ontario in 2019 and member of the Order of Canada in 2016. He currently serves on the board of directors of Polar Bears International and on the board of Casper Mount Sinai Hospital as well as the advisory board for Students on Ice. This afternoon Mr. Reiss is joined in conversation by Jody Butts. Jody is a senior governance consultant, a strategist, a trained lawyer, a respected executive leader with experience across health care, global business, and public policy. Danny and Jody, I'm pleased to welcome you to the club. I'd ask our guests to join us in viewing a quick video before they take the stage.
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Narrator5:17
Sustainability has always been deeply ingrained in our brand. Having achieved carbon neutrality in 2019 and every year thereafter, Canada Goose is committed to net zero emissions by 2025. At Canada Goose, we believe that all of us are responsible for the future. We are dedicated to giving back, protecting our planet, and making an impact in order to keep our planet cold and the people on it warm.
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Jody Butts6:05
Danny, that was awesome. I think the team did a great job in that video. That was really good. So we obviously want to talk about sustainability, it's Earth Week after all, but before we get to that, I want to start at the beginning. How this family business turned into a global powerhouse. As you know, I know the story as a board member of Canada Goose, but you better share that story. I swear, but let's share it with everyone.
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Dani Reiss6:34
Absolutely. There's many versions of the story. We are a third generation family business, founded in 1957 by my grandfather. That was the first generation. His business was small, he had a small shop in what is now condos downtown Toronto. My father got involved in the second generation and got us into the down manufacturing business. We became a preeminent manufacturer of down clothing for other brands. He created clothes for the coldest places on earth, actually called it Snow Goose. I got involved in 1997 after getting my degree in English lit at the University of Toronto. We're both good English degree people. I was going to go traveling, and my folks offered me an opportunity to work at the company for three months to make some cash. They always told me whatever you do, you will not do this because it's too hard. So I said yes to the three-month offer. I learned what a brand is. I wasn't a brand person; I used to cut logos off my shirts. The irony is not lost on me that our logo is today a very important part of all our garments. I learned that a brand equals reputation, and this product enabled people in the coldest places to do their jobs. I started traveling to trade shows. We built the brand in Europe first. It's a Canadian success story, but we gained our reputation in the high Arctic. I remember walking down Queen Street trying to sell stuff, and nobody wanted it, told me it was too expensive and too warm for the city. In Europe they saw us as a luxury brand, authentic Canadian like a Swiss watch. So we started building in Europe first and eventually re-imported it to North America. It's been a 25-year journey that became an overnight success.
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Jody Butts10:37
Exactly, it's always that way right. So let's talk about purpose. Within that context we can talk about the made in Canada aspect of Canada Goose. I'm sure there's lots of people listening online and in this room. You hear about corporate purpose. What does it mean to you and to Canada Goose, and how did you get there?
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Dani Reiss11:03
For me, purpose was important from day one. I never wanted to do something that didn't matter. Coming into the company, I never thought making jackets had real meaning, but I learned how it impacted people's lives. Every decision we made has been through a lens of purpose and leaving a meaningful legacy. A great example is our commitment to made in Canada. In 2000, we decided to keep production in Canada even though everyone was leaving. They said nobody cares about made in Canada. But I was learning in Europe and Japan that made in Canada added value. I figured if we could stick around for five years, we'd be the only brand left, and if people start caring about made in Canada, we'd have a massive competitive advantage. That has worked. We now have the largest manufacturing infrastructure of its kind in Canada, employing approximately 20% of the cut and sew workforce. That sector had been decimated by globalization, and we helped revitalize it. That infrastructure helped during the pandemic. Every major decision is filtered through: how is this going to be important, how is it going to leave a mark?
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Jody Butts14:18
Well, that's awesome. One of the words we heard in the video was authenticity. What's the relationship between purpose and authenticity?
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Dani Reiss14:28
I think they're similar. It's difficult to have a purpose if you're not authentic. Authenticity is real, it's a reputation. To be purpose-driven, you have to be authentic. In business today, especially now, it's become more important. The pandemic has shone a light on lots of things.
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Jody Butts15:10
Yeah, so let's dig into that a little bit. You referenced meeting moments. There are a lot of companies that aren't sure what to do when something like a pandemic happens, discovery of unmarked graves containing children from residential schools. How does purpose help you understand how to meet those moments?
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Dani Reiss15:42
I think the role of business and government has changed. Businesses are trusted more, execute faster, and get things done quicker than government. People are looking for businesses to play a real role in communities and make positive change. Whether it's sustainability or social justice, businesses are expected to do that. I expect our business to do that, and we always have. Anytime there was a crisis, we'd make a donation. We don't always announce it; it's about doing it. I don't think there will be a business around in 20 years that is not good for the world. People won't buy from companies that aren't good for the world because the state of the world is not as good as it used to be.
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Jody Butts17:16
So what would you say to someone who challenges you, saying you should just focus on the shareholder?
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Dani Reiss17:28
I honestly think that is focusing on the shareholder. I want to build a company for the long term, for generations and decades. That builds shareholder value. Shareholder value is not built quarter to quarter. We look at things long term. Those people have a different view of the time horizon of shareholder value. We want what's right for society and the planet over the long term, and also for business.
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Jody Butts18:26
Would the company's purpose ever prevent Canada Goose from meeting a moment? For example, the pandemic. It's awesome that Canada Goose made PPE. But was there any discussion like, maybe this isn't our moment?
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Dani Reiss18:52
It was instantaneous. We realized the Canadian healthcare system did not have the supplies they needed. I knew people at Mount Sinai telling me firsthand. We have factories across Canada, thousands of employees, we can make this stuff. So we just started making it. It was the right thing to do. Everyone in the company united behind it. We have the name Canada in our name. We eventually partnered with governments on procurement contracts at cost. We didn't think it was appropriate to make money during the pandemic. We ended up making over two and a half million units for Canada.
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Jody Butts20:05
Just thank all the Canada Goose team who's here. That's fantastic. So let's switch gears a little bit. It's Earth Week, Earth Day is on Friday. Let's talk about sustainability. What are Canada Goose's commitments and how do you see getting the company there?
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Dani Reiss20:23
We've taken sustainability very seriously. We issued our first ever sustainability report in the middle of the pandemic. We debated whether it was appropriate, but we decided there was no better time. Everyone was rethinking the state of the world. We are committed to net carbon zero by 2025. Among many other commitments, minimizing the use of plastics, becoming RDS certified for down. We've already done that. It's empowered the entire organization. People who work at Canada Goose are proud of what we are doing. We will take a leadership role in reshaping the apparel industry to operate sustainably. It's not a marketing campaign; companies must do this or consumers won't buy from them.
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Jody Butts22:22
The fashion industry doesn't have a great track record with emissions and wastewater. Is what Canada Goose doing enough?
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Dani Reiss22:37
I believe so. We are going very deep into our supply chain, using recycled materials and preferred fibers. Our commitments are quite extensive, and we will be able to not only achieve them but exceed them and be an example for the industry. Re-commerce is also important. Leadership has always been important for us. We became a leader by swimming upstream with made in Canada, and we can do the same with sustainability.
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Jody Butts23:42
I'm listening to you talk and it's so true. Once you identify that goal, you see things you didn't see before. Any surprises you want to share from your sustainability journey?
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Dani Reiss24:09
I think the realization is that it has to run through the whole organization, not just a department. It takes the whole company to get behind it. That itself is a powerful tool for change. It has improved our employee engagement scores. People are proud to work at Canada Goose for many reasons, and this is one of them.
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Jody Butts24:57
We have some great audience questions. This one is just fun. When was the last time you attended a fashion show?
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Dani Reiss25:12
I can't remember. I don't consider Canada Goose a fashion brand. We're a function-first brand, a performance brand. We are fashionable and sell through fashion channels, but we never make the mistake of seeing ourselves as a fashion brand. I look at us like the Land Rover of clothing. Performance pushed far enough becomes luxury. That's authenticity. My last fashion show was probably 15 years ago.
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Jody Butts26:37
Okay, that was a good one. Another fun question: Do you get any backlash due to the fact that Canadian geese are often unwelcome and can be dirty?
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Dani Reiss27:01
I just picture the images of Canada geese on silver dollars and gold coins. That's all I ever think of.
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Jody Butts27:20
Okay, let's talk about fur. Canada Goose made the decision to go fur-free. How did you land on that? Was it pressure from the outside?
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Dani Reiss27:36
That was something we had been talking about for some time. It fell under our human nature platform. We realized we could make the same quality products without fur, and if we could be more sustainable that way, we should. So we made that decision.
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Jody Butts28:11
Have you received any backlash from discontinuing fur?
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Dani Reiss28:19
No, we haven't. We've had important conversations with indigenous communities who use fur as a way of life. We are not opposed to fur, but we decided for our inline product we don't need to use it anymore.
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Jody Butts28:43
Another great question from the audience: When you have Canada in your name, how do you become and stay globally relevant?
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Dani Reiss28:57
I think the Canadian brand is very strong. Having traveled the world, I feel like an unofficial ambassador for Canada. Canada Goose is an unofficial ambassador. A lot of Canadian businesses miss out on the opportunity to take advantage of that brand because people around the world love Canada. Canada has been a tremendous benefit. I strongly encourage the Canadian business community to leverage the brand of Canada.
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Jody Butts29:55
So flip that around: What do you think the impact has been for Canada by Canada Goose including it in its name?
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Dani Reiss30:07
I think we have enhanced the Canadian brand. The Canadian brand is bigger than we are. Canada is a country highly revered, and we should all be proud of that.
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Jody Butts30:54
You've been in this role for a little bit longer than you originally anticipated. What excites you about being CEO of Canada Goose?
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Dani Reiss31:08
We have so many opportunities. It's become a big responsibility. I wake up every morning trying to earn what we've already achieved. Every day is exciting. I realize I just come to work, even though I haven't been in the office for two years. Showing up on screen for my colleagues.
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Jody Butts31:52
Another audience question: What impact do rip-off Canada Goose products have on your brand, and how do you think that threat through?
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Dani Reiss32:09
Focusing on our own brand is the most important thing. If we execute our plans, we'll continue to be strong. Other brands entering the category validate it. We helped create the category. Only the paranoid survive, so I'm aware of my competition but don't lose sleep. Counterfeit is a significant problem. We protect our intellectual property to protect our fans and people who want to buy real Canada Goose. We have a thorough IP protection program.
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Jody Butts33:33
Not everybody may know the relationship between Canada Goose and the movie business. Can you share how it started and where it is today?
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Dani Reiss33:51
Canada Goose and the movies have been very important for decades. We're the unofficial jacket of film sets everywhere it's cold. We sell jackets to the film industry for their functionality. If you're standing outside for 18 hours in a Snow Mantra or Resolute parka, you won't be freezing, and you have lots of pockets. The film industry helped us bring our product from behind the camera to in front of the camera authentically. We never paid for product placement. The first movie was The Day After Tomorrow with Dennis Quaid, about climate change. Then National Treasure with Nicholas Cage. All the bad guys wore one of our competitor brands, the good guys wore ours. I took that as an omen. We've been in hundreds of Hollywood films since then and remain a fixture behind the camera. The Mystique jacket got its name because we made it for Rebecca Romijn in X-Men when she needed a long jacket to cover her painted body. We commercialized it.
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Jody Butts36:45
Bringing it back to purpose, when you think about the philanthropic work with Polar Bears International and Students on Ice, how does that fit within the purpose and contribute to organizational culture?
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Dani Reiss37:09
We've been involved with Polar Bears International for 15 years. On our 50th anniversary, we published a book and wanted to find the right charitable partner aligned with our purpose. Two-thirds of the world's polar bears live in Canada. They are icons of the north, and our jackets are sometimes seen as iconic. So it made sense. I served on their board, was chairman for a long time. We made special jackets and donated millions. The relationship continues to grow. The PBI line has done well.
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Jody Butts39:08
Last question, Danny. What keeps you up at night, and where do you think Canada Goose will be in five years?
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Dani Reiss39:20
I'm a bad sleeper. In five years, the sky's the limit. We need to continue to be a purpose-based brand. I used to wonder if one year we'd sell too many jackets, but now I see brands much bigger than us. The opportunity continues to be huge. We can grow and transform our business in a sustainable way. That's appealing for investors.
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Jody Butts40:42
You didn't give me the answer to what keeps you up at night, but you gave me the answer to why you get up in the morning. That's pretty awesome. Please join me in thanking Danny for joining us today.
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David Simmons41:33
On behalf of the Canadian Club, I want to acknowledge your commitment. Thank you to Jody for your expert moderation. I wear Canada Goose proudly. It's a recognizable brand synonymous with our country. I wish you continued success and growth. Jody, thank you for being a friend. Cadillac Fairview and EY, thank you for your sponsorship. If you can join us tomorrow, we are hosting Jagmeet Singh, leader of the federal NDP. On May 3rd, World Press Freedom Day, we host a conversation with the president and CEO of CBC, Catherine Tait. Let me conclude by thanking our AV supplier and Livemeetings.ca. Members and guests, please stay safe and stay healthy. Thank you.