How Canadian women entrepreneurs are flipping the script on global trade

Globe and Mail

a day ago

Barb Stegemann was at a party in the U.S. earlier this year where talk turned to cross-border relations. 'We're going to make you the 51st state,' one partygoer said to her, jokingly.
The president and founder of Halifax-based perfume company The 7 Virtues riffed back, 'We're going to make you the 11th province!' She then lauded Canada's Charter of Rights, explained that women in Canada were being well protected as a result of the charter, and listed other benefits of being Canadian.
'I felt really empowered; I felt good. I wondered how I could translate that into a perfume that makes you feel good.'
Now, she and her team of 35 employees – the majority in Canada, but some based in the U.S. – have a wait list for Oh Canada and Eau America, two scents they're launching on July 1 and July 4, respectively. The former includes the aromas of maple, aged leather and smoky bacon while the latter has notes of apple pie and bourbon.
'Whether they barely break even or are a runaway hit, it's something that makes people happy, and I think that's really our responsibility as businesses,' says Ms. Stegemann, who will sell the new products via the company's website and Halifax storefront, The 7 Virtues Perfume Atelier. She's not sure if they'll get picked up by Sephora, the company's main distributor.
This is just one way The 7 Virtues is tackling the state of global trade. Ever-changing tariffs from the U.S., and an overall sense that globalization is transforming, has many companies changing tack. With those shifts comes interesting opportunities as well.
Production costs for The 7 Virtues have risen by 20 to 30 per cent because of tariffs affecting ingredient suppliers and direct sales; some of its products are made in Canada, and some in the U.S., while ingredients come from all over the world.
While some aspects of the company are in a holding pattern, Ms. Stegemann says it will not slow plans to go from selling in 1,550 Sephora stores worldwide to 1,700 by fall. 'I think what most companies should be doing is to continue as planned,' she says.
In January, just before inauguration day in the U.S., Toronto-based skincare company Three Ships made a bold move, sending a full quarter's worth of stock to its Chicago warehouse.
'It would give us enough time to be able to respond if tariffs went into place without having to take that immediate hit,' says Laura Thompson, who launched the Toronto-based company along with Connie Lo in 2020.
Skincare retailers require three months' notice for price hikes, so the stockpile gave the Three Ships founders and their 20 employees some breathing room. 'We've talked to other companies, and we haven't met anybody else who's been as prepared,' says Ms. Thompson, who tracked other companies moving stock in February and March.
Around the same time, ahead of the curve again, Three Ships told retailers – it sells in Whole Foods and other stores – about a price increase of about 10 per cent that would come into effect at the end of April. However, while many of the company's international suppliers were being hit with tariffs, the cost changes to Three Ships didn't end up being brutal. So, it reversed the price increase in Canada.
Ms. Lo says that decision has had positive ripple effects. 'Canadians are really excited about supporting Canadian brands. This showed them that, hey, this company is not just taking an opportunity to do a price increase and blame it on tariffs.'
While the beauty brand already touted its mostly made-in-Canada status – two of its 20-plus products are manufactured in South Korea – it's now leaning into its homegrown appeal. 'We've cancelled all of our marketing activations planned for the U.S., and we've reallocated those dollars to events in Canada because 'made in Canada' is such a big angle,' says Ms. Thompson.
As well, Three Ships has paused its plan to increase U.S. sales to 50 per cent of total sales, says Ms. Thompson. 'Let's invest dollars here. Let's focus on our made-in-Canada angle, and supporting our Canadian consumers, and grow where we're seeing success already, without trying to force things when there's all this chaos.'
In Vancouver, pet grooming product company Drby Pet Co. has similarly reconsidered Stateside expansion. Founder Wenny Chiu previously planned to make a big U.S. push in 2025. Her line of four natural and eco-friendly products – Natural Pet Toothpaste is a top seller – sells in B.C., Alberta and Ontario retailers, online, and via Amazon.ca.
In January, Ms. Chiu opened up an Amazon.com store and started reaching out to independent U.S. retailers. But by March, she paused the online store and slowed her outreach efforts.
With her costs rising and feeling that a price increase was unwise, Ms. Chiu pivoted to focus on her company's core identity. 'I want to put more into marketing and tightening up, refining ourselves a bit more before we go farther out. We want to build a solid foundation.'
She's investing in website SEO (search engine optimization) and attending more in-person events – since both drive sales and allow her to build stronger customer relationships.
These women entrepreneurs agree that new international trade costs have caused them concern, but they've seen worse, including the supply chain challenges during the pandemic. Things are different, things keep changing, but currently it's nothing that a little strategy, a focus on strengths and creativity can't work around.
'You don't want to hurt your bottom line or your customer loyalty. The last thing I want to do is lose customers because of these tariffs,' says Ms. Chiu. 'Being able to show that our product is worth it is more important than expansion at this moment.'