Groupe Marcelle pushes for Created in Canada label as tariffs reshape consumer habits Canada's largest cosmetics manufacturer says customers increasingly ask where products come from, and it is urging Ottawa to recognize Canadian creation alongside Made in Canada labels. MONTREAL - Groupe Marcelle says U.S. tariffs have reshaped Canadian consumer habits, driving a dose of patriotism at the cosmetics counter. Canada's largest cosmetics manufacturer reports that customers now ask about the origins of products before buying. Company president David Cape says shoppers should have clear labels that reflect whether products are created in Canada, not just whether they carry a Made in Canada designation. He argues manufacturing is simply the last chapter in a much longer story. Cape has been pushing the federal government to introduce a Created in Canada designation, and officials are now considering the idea.David Cape Pushes Created In Canada LabelHe says Made in Canada and Product of Canada labels focus on physical components and final assembly, while a new label should also recognize Canadian creation. The fresh push comes as Canadian industries face mounting pressure from U.S. tariffs and import bans, with President Donald Trump predicting Canada will seek a trade deal within weeks. The cosmetics sector has been hit by tariffs and counter-tariffs, which have raised costs for some products.Marcelle says that while there is uncertainty in the market, the impact on its costs is limited for now. 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. The company 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 products are formulated for 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.Marcelle Highlights Canadian Supply ChainWe are using algae that comes from the Gaspe 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. That figure underscores how deeply the company's operations remain rooted in the country.Marcelle pioneered hypoallergenic skincare products and was founded in Chicago, Illinois, in 1874. Cape's grandfather, pharmacist Victor Cape, became the Canadian distributor in 1949. In 1973, he and his son Michael purchased the worldwide distribution and manufacturing rights and moved production to Montreal. The company added brands Lise Watier 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. Marcelle also powered up what it calls a Montreal Canadian line, a production line designed and built in town and used to manufacture Canadian products. The company says the line reflects its commitment to innovation and production at home.Consumers Demand Origin TransparencyCape said the fact that the brands are made in Canada and innovated in Canada is interesting to people. The majority of consumers are much more aware of where their products are coming from and are asking questions about that, he said. So it is a great opportunity for us to be telling our story, where before, it was not so interesting to people, he added.The shift in consumer attention has given the company a chance to highlight its local roots and its Canadian supply chain. Recognizing creation, Cape says, is a thing of beauty. He argues that even when companies must source many things from around the world because they are not made in Canada, it is important that Canadian innovation and intellectual property are valued by shoppers. The broader tariff dispute continues to affect Canadian industries.Quebec alcohol producers have been shut out of the U.S. market as a ban takes effect, and other manufacturers are caught in the tariff crossfire. A new tax break could offer relief to some Barrie manufacturers. Against that backdrop, Groupe Marcelle is betting that consumers will reward brands that can clearly show what is created in Canada. The company says its Montreal base, local ingredients and Canadian spending give it a strong story to tell at the cosmetics counter.