Hearth & Home Magazine - 2019 October Issue

OCTOBER 2019

THE VOICE OF THE HEARTH, BARBECUE AND PATIO INDUSTRIES

CANADIAN HEARTH BARBECUE PATIO

COMMERCE

HEARTH

BARBECUE

PATIO

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REGISTER NOW FOR INDOOR-OUTDOOR LIVING’S LIVELIEST EVENT. HPBExpo 2020. NEW ORLEANS. Trends are changing, seasonal distinctions are becoming less clear, and the boundaries of hearth, patio, and barbecue products are overlapping. The ever-evolving consumer demand for the latest in indoor-outdoor living has created new, year-round business opportunities, and HPBExpo 2020 is the most efficient, informative, and exciting place to get ahead of these emerging trends and meet the people that could jump start an entire year’s worth of sales. It all happens in New Orleans—the city that celebrates the very indoor-outdoor living experiences that your business brings to life.

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| CONTENTS | FEATURES Canada 12

An Introduction Canada!

22 Oh, It Could Be Better

With new-home construction down, sales of hearth products are also weak.

A Good Story to Tell 32

Miles Industries has a long, and successful, history of promoting gas-fueled radiant, zone heating.

Mornings in the Tub 38 For some it’s yoga, for others meditation, but for

the Bourques it’s hot water and planning the day that leads to success (yep, even throughout the frigid Canadian winters).

44

What’s Cooking in Canada?

44 Canadian barbecue distributors talk trends and challenges.

Known & Respected 56

Known for its commercial foodservice

appliances, Crown Verity adds residential appliances to its lineup.

Creating Kitchens, Outdoors 60

If Ryan Bloom comes calling, hear him out; he

appears to have a way to increase your bottom line.

68

Patio furniture sales were impacted by the Not the Greatest

32

weather (surprise!), a weak loonie, and the U.S. president’s tariffs.

A Formidable Team 74 CabanaCoast has visionary owners, quick-ship on everything, and a concentration on both specialty and commercial business.

Three Months of Warmth 78 In Ottawa, Patio Comfort’s customers have learned to shop in very cold weather.

4 | OCTOBER 2019 | www.hearthandhome.com

78

DEPARTMENTS

7

86

Perspective New Products

90 Business Climate 94

Stock Watch

96

Ad Index

98

Parting Shot

97

Who Reads Hearth & Home?

JOURNAL

84

A PUBLICATION OF THE HEARTH, PATIO & BARBECUE ASSOCIATION

ON THE WEB News (Almost) 200 Years of Legal Immigration Numbers Median Household Income Rises in July 2019

Recipes

38

Napoleon Grills’ Pineapple Teriyaki Sliders Pit Boss Grills’ Beaver Tails

OCTOBER 2019

THE VOICE OF THE HEARTH, BARBECUE AND PATIO INDUSTRIES

®

On the Cover Le Chateau Frontenac hotel in Québec City, Canada.

CANADIAN HEARTH BARBECUE PATIO

COMMERCE

HEARTH

BARBECUE

PATIO

HEARTH BARBECUE PATIO

56

CANADIAN HEARTH

BARBECUE

PATIO

COMMERCE

www.hearthandhome.com COVER PHOTO: ©2019 GETTY IMAGES. WWW.GETTYIMAGES.COM

www.hearthandhome.com | OCTOBER 2019 | 5

Publisher/Editor Richard Wright wright@villagewest.com Editorial only, send digital images to paquette@villagewest.com

Advertising Jackie Avignone, Director avignone@villagewest.com Melody Baird, Administrative Assistant baird@villagewest.com

Contributing Writers Lisa Readie Mayer, Tom Lassiter, Bill Sendelback, Paul Stegmeir, Mark Brock, Kathi Caldwell-Hopper

Creative Services Erica Paquette, Art Director paquette@villagewest.com

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Copyright Š 2019 by Village West Publishing.

All rights reserved. Reproduction in whole or in part without written permission is prohibited. All advertising is subject to approval by the publisher.

Please address all correspondence to Hearth & Home, P.O. Box 1288, Laconia, NH 03247, (603) 528-4285, (800) 258-3772, FAX: (603) 524-0643.

Hearth & Home, The Outdoor Room and Vesta Awards are registered trademarks of Village West Publishing. Village West Publishing is not associated with, and has no financial interest in, the Hearth, Patio & Barbecue Association.

Hearth & Home (USPS 575-210/ISSN 02735695), Vol. XL, No. 11 is published monthly by Village West Publishing, 25 Country Club Road, Ste. 403, Gilford, NH 03249/P.O. Box 1288, Laconia, NH 03247. Subscription price $36 per year; $60 (USD) in Canada; $120 (USD) overseas (first class, airmail only). Single copy price $15 (includes postage and handling) in U.S. and in Canada. Periodicals postage paid at Laconia, NH and at additional entry office. POSTMASTER: Please send address changes to Village West Publishing, Circulation Department, P.O. Box 1288, Laconia, NH 03247.

6 | OCTOBER 2019 | www.hearthandhome.com

| Perspective |

In Search of Customers, and Retailers

O

ver the past three or four years, we’ve heard from retailers – particularly, but not exclusively, patio retailers – that traffic is down, but sales are up due to customers purchasing high-end products.

If sales are up, you might say, then what’s the problem?

The problem, my friends, is that no business can withstand, for long, a decline in the number of consumers entering their store. In many respects, retail is really a numbers game. As a storeowner, you certainly want to attract as many customers as possible. In numbers lies security, as well as success.

Remember, the decline in retail traffic began about four or five years ago, and if traffic is down, it might be a harbinger of worse things to come.

A year or two ago we tried to convince those patio and/or hearth retailers with traffic problems to begin selling barbecue.

If there’s one product that can attract a crowd it’s the sight, smell, and taste of barbecue. Draw them in with a rack of ribs, a little music, and perhaps a cold drink, then show them how comfortable that deep-seating chair is, how warming a fire pit can be, and how easy a pellet grill is to operate.

It’s really a no-brainer, yet we doubt that many retailers took that advice.

Closing Shop The numbers of retailers who are closing their doors and walking away continues to mount. The lucky ones are those with sons and daughters who are interested in running the business.

The lucky ones are also those who find a willing buyer. But the majority, it seems, are those who put the key in the door, and turn it for the last time.

Traffic at Markets At the July Casual Preview Show, at The Mart in Chicago, traffic was also down – not just a little, but a lot. Sure, there were some showrooms with decent traffic, you know, the ones that are always jammed to the hilt. But for the majority of manufacturers, the Preview Show was far from normal.

Three weeks ago (September 10-13), the Casual Market came and left – it left with many manufacturers scratching their heads. Once more, traffic was down; hallways that normally are packed with buyers were far from packed this time.

The fault is not with The Mart, nor with the ICFA; both entities always do a commendable job. It lies totally with the retail base.

Why weren’t more retailers at the show, as usual? How will they choose which products to floor in the coming year?

The pressure is now on the reps. Why, why, why, did so many retailers stay home? Send email to wright@villagewest.com.

Fireplaces Flickering Out? Fireplaces are apparently on the wane, reports the National Association of Home Builders (NAHB). The primary reason for this, the group believes, is cost. A moderately elaborate masonry fireplace can easily cost tens of thousands of dollars, and though gas fireplaces are far less costly, they may be less must-have than they were in the past.

Only 41% of single-family homes started in 2018 included fireplaces, according to the NAHB tabulation of recently released data from the Survey of Construction produced by the U.S. Census Bureau. This percentage is the lowest on record since the NAHB began tabulating the data in a consistent fashion in 2001. Since 2015, the share of single-family homes with fireplaces has been declining steadily, setting a new post-2001 record low each of the past three years.

According to the 2019 edition of NAHB’s “What Home Buyers Really Want,” 55% and 48% of homebuyers rate gas- and wood-burning fireplaces, respectively, as at least desirable. By this measure, fireplaces fall in the middle of the list of decorative features in the NAHB survey in terms of desirability. However, only 16% of buyers say either type of fireplace is essential (meaning they are unlikely to purchase a home unless it has one).

Click here for a mobile friendly reading experience www.hearthandhome.com | OCTOBER 2019

| 7

ADVERTISEMENT

WHY EXPANDING INTO OUTDOOR LIVING IS KEY TO SALES GROWTH

How one hearth dealer saw success by adding grills & outdoor living products to their portfolio.

P

hoenix hearth dealer and distributor Arizona Fireplaces is no stranger to calculated risk. Beginning 40 years ago as a humble framing and hardware company, they seized the opportunity to add fireplaces and hearths to their product mix. Now, they have evolved their portfolio again. This time, they’re taking full advantage of the fastest growing trend in the industry – outdoor living. We sat down with secondgeneration owner Keith Richardson to learn more about his company’s path to success and the serious sales growth they’ve witnessed in response to their expansion into outdoor living products.

Q: Arizona Fireplaces took a calculated risk by expanding into outdoor living. What made you take this chance and why should other dealers consider the same?

8 | OCTOBER 2019 | www.napoleonfireplaces.com

Keith: At the end of the day, every business owner is an entrepreneur. There’s a certain element of risk that we have to face every day and sleep with every night. When we had the chance to expand into hearth, we jumped on it. Our customers trusted us and wanted to buy everything from us, so we capitalized on their one-stop shop mentality. Diving into barbecues and outdoor living was a result of that, too.

Adding the outdoor portfolio was a gutsy call, but it expanded us into other categories and other brands that ultimately grew our entire business. In addition to everything hearth-related, we now carry barbecues, outdoor heating, outdoor accessories, fire pits, fire tables and more. For dealers who are on the fence about expanding their products into this category, I would tell them this: If your customer trusts you, they’ll buy it from you. In fact, they would prefer to buy it from you. So why not offer it to them?

Q: When expanding your product portfolio, how did you approach the right product mix?

Keith: To me, it was all about starting with a strong relationship with the manufacturing partner. There are tangible benefits to having one brand that offers multiple product categories, and that is the approach we aimed to take. It has resulted in freight efficiencies, volume discounts, and good inventory levels. We like when we can become more important to them and they can become more important to us. Our business gets to supply expansive products at a competitive price, and when that value can be passed down to our customers, everybody wins.

Keith: We train our dealers and employees on how to talk about both categories interchangeably, and the ways that they complement each other. For example, when builders are doing a large-scale project and we’re selling them a fireplace, we make sure to ask them about what they are planning to do for the outdoor room. A lot of the time, these builders consult their appliance guy for those needs. But now that we’re in the business, we’ve had success by saying, “Instead of going with your appliance guy, get everything from us. What are you doing for heaters? Have you seen what this grill can do?”

We’ve also been successful when there’s a barbecue dealer expanding into fireplaces, too. When a builder comes in for a barbecue, their customer could very well be considering an outdoor kitchen. That means they’re doing a backyard remodel. So, why not sell them an outdoor fireplace or heater, too? It goes both ways. That’s why offering a full outdoor living portfolio is so important. Fireplaces and barbecues really go with each other, especially as the outdoor living market continues to grow with such popularity.

L to R: Keith and Don Richardson.

Q: What trends are you witnessing in the industry today?

Keith: Anything that has to do with outdoor living. People want to spend more time outside, and they want to elevate those experiences with various amenities. That’s a trend that isn’t going away.

We’re also seeing customers come in wanting to do a multitude of things on their grill. Whether that’s searing a steak, cooking a bunch of burgers for the little league team, or adding a little smoke flavor, they want their grill to do more. They want the freedom to cook whatever they need, however they want it. We love offering a grill that can do that, because when you paint a picture of the customer doing all those different things at their house, they’re more likely to buy.

Q: How have you successfully integrated the selling of hearth and barbecue categories together?

Arizona Fireplaces is an industry leader and national distributor, supplying and distributing an innovative range of products with life and style in mind. They offer the finest availability of major name brand fireplaces and hearth accessories, and proudly carry Napoleon products as part of their offering.

Napoleon is a leading North American manufacturer of wood-burning, gas and electric fireplaces, as well as outdoor living products. Napoleon aims to inspire and enhance the most memorable experiences people enjoy in their homes. To find out more about Napoleon, visit napoleonfireplaces.com.

www.napoleonfireplaces.com | OCTOBER 2019 | 9

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1.8 6 6 .6 0 6 . 6 3 3 0

The Canadian Economy & Business

Richard Wright

Logging in the northern reaches of the country.

12 | OCTOBER 2019 | www.hearthandhome.com

AN INTRODUCTION

by Richard Wright

Prince Edward Island.

Click here for a mobile

friendly reading| experience www.hearthandhome.com OCTOBER 2019 | 13

The Canadian Economy & Business

L The Chuckegg Creek Fire in northern Alberta was the size of the state of Rhode Island, and 50% larger than last year’s record-breaking Mendocino Complex Fire in California. It jumped rivers with ease, blackened the rain with soot, and colored sunsets as far away as Great Britain.

14 | OCTOBER 2019 | www.hearthandhome.com

ALAN MURPHY

ast year, a major topic of conversation and concern was the 2,000-plus wildfires burning in British Columbia, and polluting the air in places such as Vancouver to the extent that it was said to be “worse than that in Beijing.”

This year was very different, at least in BC where there were few forest fires. But it was a different story in the Province of Alberta, where, from March 1 to June 24, there were a total of 1,985,228 acres burned.

“People have accepted the political situation in the U.S. They might not like it, but they are tolerating it. Most Canadians know that we are joined at the hip with the U.S. We are dependent on you, and the U.S. is, to a degree, dependent on Canada.

There is so much synergy that we just have to make this work – so we do.”

Buy Canadian A year ago, a Canadian movement called “Buy Canadian” was in place, as a response to the U.S. president’s imposing strict tariffs on lumber, aluminum, and steel. It looked like that movement would be around for a while. Did it continue?

Housing “The average price of a home is going down in most Canadian provinces, and thank God for that! But it needs to be by a lot more. Or it needs to be stagnant for 10 years to rectify it so that people can get into the market.”

VP of Business Development Blaze King

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The Canadian Economy & Business

1.38

Monthly High/Low for U.S. Dollar to Canadian Dollar Spot Exchange Rate 2019

High Low

1.36 1.35

Exchange Rate

Zero Net “The HPBA, HPBAC, and other participants lobbied against the removal of natural gas from Vancouver, and they were successful.

The approach by the regulators has been changed, and that was directly attributable to the natural gas companies and the campaigning by industry with the various managers and/or politicians.

“But I don’t think this is going away.

There are a lot of new conversations, such as, ‘In this house you can only have two fireplaces, and a barbecue, and a cooker, etc.’ But that’s still progress, to a certain degree. Now we’re all here just wanting to settle down and be stable for a while; we want to get back to normal business.

“We spent five years recertifying all of our products for 2020, at an enormous cost. Now we are in the position where we can actually start to look at new products and new innovations. Hopefully we can settle down to good business in the future.”

1.35

1.35

1.34

1.34

1.33

1.33

1.33

1.32

1.32 1.31

1.31

1.33 1.33

1.32

1.31 1.30

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Recently, the U.S. dollar has been worth around $1.30 or so in Canada. That’s a range that has been prevalent for many years, with a few anomalies.

Average Canadian House Prices – Provinces July 2018 to July 2019

Average House Price

Provinces

Unemployment

by Province/Territory

British Columbia Ontario Alberta Québec

British Columbia

Province/territory British Columbia

British Columbia

Rate

British Columbia British Columbia

Canada (national) Alberta

British Columbia Alberta

British Columbia

5.4%

Alberta British Columbia Alberta British Columbia

British Columbia Alberta British Columbia

British Columbia Saskatchewan Alberta

4.3%

Saskatchewan Alberta Alberta Saskatchewan Alberta Saskatchewan

Alberta Alberta Saskatchewan Alberta manatobia Saskatchewan

manatobia Saskatchewan

Saskatchewan Saskatchewan manatobia

Saskatchewan manatobia

Saskatchewan manatobia Ontario Saskatchewan manatobia Ontario

Manitoba manatobia Ontario manatobia Ontario manatobia Ontario

manatobia

Ontario Ontario Quebec manatobia Ontario Quebec

Ontario Quebec Ontario

Quebec Ontario Quebec Ontario

Québec Quebec New Brunswick

6.7% 5.2% 5.0%

New Brunswick

5.0% 7.2%

Prince Edward Island New Brunswick Prince Edward Island New Brunswick

Nova Scotia New Brunswick Prince Edward Island

New Brunswick Prince Edward Island

6.5%

New Brunswick Prince Edward Island NovaBrunswick Scotia New Prince Edward Island Nova Scotia

Prince Edward Island Prince Edward Island

Nova Scotia Prince Edward Island

9.0%

Nova Scotia Prince Edward Island Nova Scotia Prince Edward Island

Newfoundland/Labrador Prince Edward Island NewScotia Foundland Nova New Foundland Nova Scotia

Manitoba Saskatchewan Newfoundland & Labrador Prince Edward Island New Brunswick Canadian Average

12.4%

Nova Scotia New Foundland Nova Scotia New Foundland Nova Scotia New Foundland Yukon Nova Scotia New Foundland Yukon New Foundland Yukon New Foundland Yukon New Foundland Yukon New Foundland Northwest territories New Foundland Yukon Northwest territories

Northwest territories Yukon Northwest territories Yukon Yukon Nunavut Northwest territories

16 | OCTOBER 2019 | www.hearthandhome.com Nunavut Northwest territories

Northwest territories Nunavut Northwest territories Nunavut Northwest territories Nunavut

Northwest territories

7.3%

$376,363

-1.9%

$325,318

5.1%

$291,242

1.7%

$286,432

-1.7%

$248,818

1.8%

$237,760

24.1%

$179,988

0.3%

$358,364

3%

Average Canadian House Prices – Cities July 2018 to July 2019

Cities Greater Vancouver, British Columbia Greater Toronto, Ontario Ottawa, Ontario Calgary, Alberta Montréal, Québec Halifax-Dartmouth, Nova Scotia Winnipeg, Manitoba Québec, Québec Regina, Saskatchewan

Fredericton Area, New Brunswick Canadian Average

Yukon Northwest territories Yukon

-9.4%

$596,545

SOURCE: CANADIAN REAL ESTATE ASSOCIATION.

5.2%

Quebec New Brunswick Quebec New Brunswick Quebec

New Brunswick Quebec New Brunswick Quebec

$682,807

12 Month Change

SOURCE: CANADIAN REAL ESTATE ASSOCIATION.

Average House Price

12 Month Change

$995,200

-9.4%

$800,900

4.4%

$428,200

8.8%

$419,900

-3.5%

$367,800

7.3%

$309,101

4.5%

$304,605

2.7%

$280,580

4.5%

$269,400

-4.4%

$186,424

-5.6%

$436,211

0.9%

The Valor Story of Warmth.

VALOR UK OPENS IN BIRMINGHAM, ENGLAND.

1890

1940s and 50s

1977

THEODORE MILES SELLS GAS APPLIANCES THAT ARE HOOKED UP TO TOWN GRID IN FAMILY HARDWARE BUSINESS.

EDGAR’S SON GARRY AND HIS WIFE, BARBARA INCORPORATE MILES INDUSTRIES. THEIR SON MARTIN MILES JOINS THEM AND PAUL MILES SOON AFTER.

YOUNG GARRY MILES IS A METER READER AND INSTALLER WHEN NOT WORKING AT FAMILY STORE.

1982

EDGAR MILES’ HEATING BUSINESS DISTRIBUTES ASHLEY WOOD STOVE IN WESTERN CANADA.

GAS INSERTS Valor introduces Valorflame™ efficient gas inserts to North America, setting the industry standard.

1984 HIGH EFFICIENCY Homeflame™ launches above 70% efficiency, a worldwide phenomenon.

1,000,000 units produced over the next 10 years.

1986 WORLD'S FIRST DIRECT VENT World's first direct vented gas fireplace, revolutionizing the gas fireplace industry.

1991 LEGEND INSERTS: The Legend G series Introduced many new firsts, improving heat and aesthetics: CONVECTIVE HEAT Valor adds secondary heat exchanger, naturally improving convective heat— without a fan.

TODAY THE SCIENCE OF WARMTH MARTIN AND PAUL MILES CARRY ON MILES TRADITION OF CONTINUAL INNOVATION IN SEARCH OF THE PERFECT ANSWER TO WARMTH.

MOLDED BRICKS First molded ceramic brick liners transformed painted black metal interiors into an pleasing design element.

CERAMIC LOGS Introduced lightweight fiber ceramic logs that warm up fast and naturally glow. Our logs produce significant radiant heat, relative to the industry.

2016 HEATSHIFT TM Valor pioneered first HeatShift system on the market, improving convective heat to minimize heat loss and protect TV, artwork and other sensitive materials above fireplace.

Canada Unemployment Rate

The Canadian Economy & Business

LAURA LITCHFIELD

President/Executive Director HPBAC Climate Change “Climate change is the most important issue we have right now, and it drives other issues as well, such as using natural gas. There’s the whole question of how wood-burning fits into Zero Net program, and that has been overlooked thus far. We definitely have a lot of regulatory issues, all centered around either air quality or green house gas emissions.

Canada Unemployment Rate

6.2 6.0

“There’s also energy efficiency with the new Amendment 15 to the Canadian Energy Efficiency Act, introducing 50% minimum efficiency for heating appliances. That will have an affect. The concern is, will that 50% change? Will it increase?

“We also spent a lot of time and money this year delivering troubleshooting electronic ignition sessions across Canada to help people be prepared for adjusting to installing gas appliances without standing pilots. Plus, just getting people up to speed on how the NSPS is going

6.2

5.9 5.8

5.8

5.8

5.8

5.8

Rate

5.7

5.7

Canada Housing Starts 5.6

5.6

5.6

5.5

5.4

5.4 5.2

Oct. 2018

Jan. 2019

Apr. 2019

Jul. 2019

As in the U.S., Canada’s rate of unemployment is extremely low, and the economy is doing well.

SOURCE: TRADINGECONOMICS.COM. STATISTICS CANADA.

260

Canada Housing Starts 245

Thousands

238 213

216 194

233

225

198

222

214 203

172 150

197

192

191

166

(Numbers have been rounded.)

Oct. 2018

Jan. 2019

Apr. 2019

Jul. 2019

Canadian seasonally-adjusted housing starts decreased to 222,013 units in July of 2019 from a downwardly revised 245,000 units in June.

SOURCE: TRADINGECONOMICS.COM. CANADA MORTGAGE AND HOUSING CORPORATION.

18 | OCTOBER 2019 | www.hearthandhome.com

“The current trade war with China is having an affect because a lot of products that are shipped to Canada come through the U.S.” — Laura Litchfield

to affect Canadian jurisdictions has taken time and money, because it does vary from province to province.

“The current trade war with China is having an affect because a lot of products that are shipped to Canada come through the U.S., which means that tariffs apply to them before they get to Canada. That is having an affect. Plus the volatility of the situation; we just don’t know what to expect.”

City of Vancouver “A year ago, the City of Vancouver was close to restricting use of natural gas. They are continuing to work toward a renewable city, as they call it. Their long-term goal is to be carbon neutral. But they are allowing the installation of gas fireplaces and barbecue grills in their new building code changes. They are being reasonable.

“You can install at least one gas fireplace and a grill in a home and, at this point, it only affects homes over 3,500 sq. ft. They are talking about bringing in a cap on greenhouse gas emissions for smaller homes, but that will be probably in 2021.

“They have gone from planning to phase out natural gas, to understanding that people still want natural gas. They are focusing more on increasing renewable natural gas, and other ways of dealing with it without actually making it virtually impossible to put gas lines or gas fireplaces in. Now they contact us as they are formulating regulations and involve us in the code creation; we have a much better relationship with them. We really have made a lot of progress.”

Provincial Outlook Dependence on global commodity markets will limit growth in Saskatchewan, as Chinese restrictions on agricultural imports from Canada will reduce growth to about half a point. Growth is expected to then accelerate to 1.5% as unemployment declines and consumers spend.

2.5 British Columbia will be nearly halved Growth in Ontario and this year, to 1.2% and 1.3%, respectively, on housing-market woes and weak exports. Healing housing markets and a modest rebound in exports should boost the pace thereafter, but at less than 2%, growth will be modest by historical standards.

Nova Scotia

Percent

The dynamic of slowing growth this year before a modest pickup in 2020 will be shared by most provinces. However, the amplitude will vary substantially across the country. The slowdown will be most acute in Alberta, where mandated production cuts and elevated unemployment restrained growth to near stall speed after topping 2% last year.

A rebound in investment related to higher oil prices and a recovering housing market should enable the provincial economy to return to healthy growth next year.

Provincial real GDP growth 2018

-3

1.3 1.2

1.6

1.2

1.6

1.8

1.5

1.8

.6

.5

1.7

1.3

1.2 1.1 1.1

1.2

.8

Newfoundland & Labrador

Prince Edward Island

Québec

.1

New Brunswick

1.5

2.6

Nova Scotia

-2

Alberta

-1

.3

British Columbia

Percent

1 0

1.6

2020f

2.5

2.2

2.2

1.3

2019f

Ontario

1.9

2

2.3

Manitoba

2.4

Saskatchewan

3

-2.7

Source: Statistics Canada. Forecast by Deloitte Economic Advisory, as of July 2019.

3 2 1 0 -1 -2 -3

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www.hearthandhome.com | OCTOBER 2019 | 19

The Canadian Hearth Business

Oh, Canada!

It Could Be Better

With new-home construction down, sales of hearth products are also weak.

Bill Sendelback

H

earth product sales in Canada are good – not great, but good. They’re not growing as well as hearth product sales in the U.S. Most manufacturers attribute the weaker sales in Canada to a weaker Canadian economy, and a big slowdown in Canadian new-home construction.

While current 2019 manufacturer shipment numbers are not available, the most recent data shows that sales of wood-burning hearth products in Canada last year were down 7% while U.S. sales were up 10%.

Sales of gas hearth products in Canada also were down 7%, but flat in the U.S. Pellet stove sales were up 26% in Canada, and up a whopping 45% in the U.S.; both totals were most likely a shock to manufacturers, contradicting their more optimistic reports.

“The Canadian economy overall is steady,” according to Laura Litchfield, executive director of the HPBA Canada, “but varies per region. Our economy today is a little off after a strong 2018.

Ontario’s economy is strong, but the economies of Alberta, Nova Scotia, and New Brunswick are down. Alberta has not recovered from a decline in its oil industry, and, unfortunately, in our urban areas, buying a home is out of reach for many young people.

“We’re hoping hearth product sales will be up next year,” she says. “There is little negativity in the marketplace, dealers are doing well, and many are weeks out on installations. But we’re concerned about the slowdown in new-home construction and, equally important, the decline in the incident rate of fireplaces in new homes.”

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PHOTO: ©2019 LUKE POTTER PHOTOGRAPHY. WWW.LUKEPOTTER.CA.

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The Canadian Hearth Business Regulatory Issues Continue HPBA Canada. “Most provinces require in Canada – and the U.S. either certification to the NSPS or CSA “The EPA’s New Source Performance B415.1, but some only require certification Standard (NSPS) has created confusion to the Step 1 of the NSPS which would among Canadian dealers and consumers still allow products with a maximum 4.5 because each province is free to establish gph emissions rate. its own different standards,” according to “As an example, Ontario’s building code Litchfield. “Our national building code says allows certification to either CSA B415.1 that provinces may go with the NSPS or or to the NSPS as it was in 2013! We are our CSA B415.1 standards, or discussing with the CSA about not require any standards at all. aligning its B415.1 with the “Some areas, such as NSPS Step 2.” towns on Vancouver Island, The City of Vancouver has are actively trying to ban all been very aggressive about wood-burning. These actions reducing or eliminating the use are scary messages that are of natural gas with its City of not based on the facts of our Vancouver Renewable City new wood-burning products.

Strategy, says De Caire, “but We’re working with the as a result of our ‘Save My municipalities to educate Natural Gas’ campaign, the them about our new clean- Laura Litchfield. city has softened its stance. burning, very efficient woodAs of the updated Vancouver burning products.” Litchfield Building By Law (VBBL) regalso points out that a recent amendment ulation, new multi-family buildings of six to the national Energy Efficiency Act will stories or fewer, and single-family homes eliminate standing pilots on heater-rated greater than 3,500 sq. ft., would have an gas fireplaces with a minimum efficiency of energy consumption budget that allows some 50% and manufactured after Jan. 1, 2020. gas fireplaces within that budget.

“The impact in Canada of the NSPS “We believe that the proposed revised 2020 Step 2 standard and deadline are not VBBL likely will soon affect singleas cut and dried as in the U.S.,” says Adam family homes of less than 3,500 sq. ft.

De Caire, director of Public Affairs for the with provisions similar to the provisions

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24 | OCTOBER 2019 | www.hearthandhome.com

for large single-family homes and accommodating at least one gas fireplace in the baseline regulations.”

“In short, this new greenhouse gas ‘budget’ will allow some natural gas usage,” adds John Crouch, director of Public Affairs for the HPBA. “This budget includes typical gas appliances such as furnaces, water heaters, and one-each gas fireplace or cooking appliance. So if you want two gas cooking appliances, including grills, or two gas fireplaces, including one outside, you have to drop one of the other items. Could this be a trend that will extend farther than just the City of Vancouver? Yes, but we have not yet seen that – so far.”

MANUFACTURERS Hearth product sales in the first half of 2019 were up mid-single digits in the U.S. for Hearth & Home Technologies (HHT) but not so in Canada, according to Alan Trusler, senior vice president of Business Development. “The overall economy in Canada is not as robust as in the U.S. It is struggling, and we see that trending down,” he says. “Some of that is because new-home construction in Canada is off 20% and down 40% in the greater Toronto area.

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The Canadian Hearth Business “Toronto had strong growth in the past but has been off since 2017, and the greater Toronto area is where Canada has its largest concentration of hearth product dealers.”

Trusler attributes some of that decline to the fairly recent 15% tax on real estate sales to foreign buyers in effect in Vancouver and Toronto.

Trusler also maintains that Canadian hearth product dealers have a greater percentage of their sales in new-home construction than dealers in the U.S., with some Canadian dealers showing 60% of their sales in new-home construction.

HHT is committed to the Canadian market and more focused on it than ever, says Trusler. While HHT expects “nice growth” in mid-single digits in 2020 in the U.S., the company expects sales growth in Canada to continue to be a challenge.

“Electric fireplace sales are certainly up in Canada, since Canada has a greater percentage of new multi-family homes where electric models are more easily installed,” says Trusler. “And outdoor fireplaces are doing well in Canada.” But HHT sees sales of gas fireplaces down in Canada due to the softness in new-home construction. However, sales of more expensive, luxury fireplaces are selling well since they are not tied to the new construction of tract-type homes.

“There is a lot of trepidation regarding sales of wood-burners among dealers on both sides of the border,” says Trusler.

“Most dealers are not bulking up on their inventory of wood-burners as they are concerned about the possible dumping of pre-2020 models at discounted prices.”

Canada has always been much more accepting of contemporary and European styling, and that trend continues, says Trusler. “There continues to be growth on both sides of the border in clean, modern, minimalistic styling, and that trend is more popular in urban areas.”

The exchange rate has not had much effect on HHT’s sales in Canada, Trusler says. “We’ve developed exchange rate programs with our Canadian distributors to help underwrite some of that affect.”

After a “good” 2018 hearth product sales year, ICC/RSF also is seeing a “good” 2019, up 5% in the U.S., and even with 2018 sales in Canada, says Dan Bonar, vice president of Residential Sales and Marketing. Sixty percent of ICC/RSF sales

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are in Canada, and 40% are in the U.S. “We have a full line of 2020-certified models in our RSF and Renaissance lines” says Bonar. “With our loyal dealer base, we expect 2020 sales, too, to be strong. It took us five years to modify our existing models to meet the 2020 standard, and there may be some price increases.”

With each Canadian province able to set its own emissions regulations, a lot of Canadian homeowners are confused and don’t know what to buy as the 2020 NSPS

while producing less than one gram per hour of particulates. We’re not dealing with people who are logical, but the HPBAC and the HPBA are doing a good job of educating regulatory folks.”

Hearth product sales are up slightly overall for Napoleon Fireplaces, according to John Czerwonka, vice president of Hearth Sales. “Our sales increase is being driven by our U.S. sales being up, while our hearth sales in Canada are down slightly after having been up for the last

The Uptown fireplace by Renaissance Fireplaces.

deadline approaches, Bonar says. Heaterrated wood-burner sales in Canada are down 15% with ICC/RSF as dealers sell-off their non-2020 models, according to Bonar. ICC/ RSF’s sales of decorative models, however, account for half of the company’s appliance sales and are up 15%. Sales of more modernstyled products are growing, but 75% of ICC/RSF’s sales are traditionally styled.

“Anyone not concerned about our environmental regulation challenges doesn’t know what is going on,” Bonar emphasizes. “And people pushing these environmental issues don’t know about the very efficient, clean-burning hearth products the industry offers. They are not aware that today we can heat a 3,000 sq. ft. home with a renewable fuel like wood

three years. We think our Canadian sales are off in part because of the decline in new-home construction in Ontario where the economy has been hit hard.”

Some dealers specialize in new-home construction, and they have been hit hardest. But most specialty retailers are heavily into remodeling which is still strong, says Czerwonka.

While Napoleon’s sales of gas and electric models are up in Canada, sales of wood- and pellet-burners are down with pellet sales off more than that of woodburners. However, the sales growth of both electric and gas fireplaces is “faster” in the U.S., says Czerwonka. Napoleon is seeing a “nice uptick” in sales of its new linear gas fireplaces and gas fireplace inserts.

The Canadian Hearth Business “Our dealers are waiting for 2020, and Iversen thinks Pacific Energy’s sales non-2020 wood-burners, and some don’t many still have inventories of non-2020 will do well in 2020. “Our entire wood- care. We have to focus on Canadian and wood-burning models. By the end of this burning line is 2020 certified, non- U.S. dealers to get them to sell-off their year we will have five 2020-certified wood- catalytic, and already being shipped. non-2020 models. burning fireplaces,” adds Czerwonka. “We Because of the upcoming 2020 standard, “We have to continue to be vigilant expect solid sales in the U.S. for the next a lot of low volume products will be off about the environmental and regulatory three years, but we’re a little less optimistic the market because of the challenges,” says Spinelli. about Canada.” costs of recertification, and “We are concerned about Traditional styling is still number catalytic combustors will the possibility of individual one with Napoleon, “but transitional drive up prices for some provinces, states, and and contemporary styling continues manufacturer’s models.” municipalities coming up to chip away at the market with more Transitional styling with their own regulations, as clean-faced models featuring modern continues to gain sales for we have already seen.” ember beds and a variety of new modern Pacific Energy on both sides Hearth product sales refractory options. of the border, “but our new are up 5% for SBI – Stove “We in this industry all share the same transitional-styled Neo line is Builder International with concerns over the environmental and not poaching sales from our most of that increase coming regulatory challenges,” says Czerwonka, regular lines,” says Iversen. in Canada. “Many of our Glen Spinelli. “including the bans on natural gas to This year’s hearth product customers in the U.S. are new-home construction in some Northern sales started in a “phenomenal” waiting for 2020-certified California cities. We believe in gas, and way for Regency Fireplaces, according to products,” according to Marc-Antoine we’re focused on vigorously lobbying to Glen Spinelli, president. “After slow-going Cantin, president. “Our new 2020-certified keep gas, but we’re beefing up into the summer, we’re seeing models are now being shipped, so we our offering of electric models good sales in both Canada expect sales in the U.S. soon to get back as an option. Homebuyers still and the U.S. considering to normal. want hearth products.” how warm it has been. We’ve “The hearth market was robust last year, Czerwonka points out made up in sales growth of and we had our best year ever on both Napoleon’s new Commitment gas products for our losses in sides of the border. We expect this year to Campaign to continue strong sales of wood-burners.” Sixty- beat 2018, but not by a huge margin. We support for our industry, the five percent of Regency’s sales now only sell wood- and pellet-burners, HPBA, the HPBAC and are in the U.S. with 35% in and for 2020 it is difficult to estimate the specialty hearth dealers. This Canada and Australia. impact on our sales of other manufacturers program, or commitment, Fireplace sales are up discounting and dumping non-2020 recently was introduced with Cory Iversen. overall for Regency with its products. But we remain confident because the naming of brothers Stephen high-end gas fireplaces selling that dumping will be done this year or and Chris Schroeter as co“very well.” Wood-burner sales early next year.” presidents of Napoleon. are down slightly, and pellet stove sales A big surprise for SBI is how “keen” Sales growth percentages are “pretty even” are flat, but electric fireplaces, many Canadian hearth between Canada and the U.S. for Pacific a new category for Regency, product dealers are to switch Energy Fireplace Products, says Cory are “going crazy,” says Spinelli. to 2020-certified models, Iversen, North American Sales manager. Although wood-burner sales even though Canada is not “Sales have been better than expected are off, Spinelli says those sales necessarily affected by the on both sides of the border, especially are now increasing as dealers NSPS because of Canada’s in the face of the dumping of non-2020 purchase and put on display CSA B415.1 standard that is wood-burners, mostly by U.S. dealers. In new 2020-certified models. accepted throughout Canada. both countries, sales are up in the East Regency made changes to Trends in hearth products but down in the West.” “every one” of its models with are very similar on both sides Sales of the company’s Town & a “huge” investment in R&D, of the border, Cantin says.

Country line are “up a little” in Canada but particularly to meet the 2020 Marc-Antoine Cantin “The major difference is “down a little” in the U.S., and sales of the NSPS deadline. “Even so, we fireplace inserts. For some company’s high-end Architectural Series expect sales in 2020 to be reason, the market for inserts are growing and selling “very well,” says ‘status quo’ with this year’s sales,” he says. in the U.S. is always a lot more robust Iversen. Even though Iversen sees fewer “Our biggest concern is manufacturers than in Canada. More than 75% of the low-end wood-burning models being sold, dumping non-2020 wood models. In inserts we manufacture go to the U.S., the company’s economy True North brand Canada, there is confusion among dealers even though the U.S. is less than half of is seeing a “good sales surge.” as to whether they can continue to sell our business.”

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The Canadian Hearth Business Wood-burning builder box fireplaces are different in Canada than in the U.S., says Cantin. “There is only a very small market in Canada for large wood-burning builder boxes with no glass doors and that produce no heat.”

Traditionally styled products are the bulk of SBI’s sales, but contemporary styling has a higher percentage of sales growth. “We don’t do ‘transitional’ because, from a design standpoint, we don’t think there is much of a market for products with styling that is ‘stuck in the middle.’”

With the increase in contemporary styling, Cantin sees a trend toward all black in wood and pellet stoves. “Plated doors and plated leg options are clearly not as popular as they once were.”

Cantin points out that with the arrival of European hearth product manufacturers, new designs have been introduced, mostly “exempt” models with a single-burn rate, allowing the manufacturer a wider variety of design configurations. “But these products remain very expensive because of the overseas freight costs and distribution markups. This will continue to limit their market penetration,” according to Cantin.

Supreme’s Novo 24.

SBI mainly is concerned about the “extreme” measures in environmental regulations that attempt to ban all wood or gas hearth products regardless of the performance of those products. Included in Cantin’s concerns is the proposal of a

30 | OCTOBER 2019 | www.hearthandhome.com

so-called “eco tax” on wood stoves proIn 2018, Travis Industries saw its posed by the Association des Professionnels Canadian sales up 8%, and this year those du Chauffage, a Québec hearth products sales are up another 5%, according to Perry organization.

Ranes, vice president of Sales. “Overall, SBI is ready for the 2020 NSPS our Canadian sales are doing better than deadline, says Cantin. “We have complete in the last few years,” he says, “but our 2020-certified product lines sales growth in the U.S. is available. Our prices have not substantially better than our been affected too much because Canadian growth.” we are strictly non-catalytic and Ranes says Travis’ Canadian we do not offer single burn-rate sales struggled a few years ago, products.” But the big news but now the company has a from SBI is that it will introduce “lively” business in Canada. gas hearth products in 2020 in “We’re particularly pleased Canada. that our Canadian dealers Supreme is having a very are selling more high-end good sales year, up 35% products. Canada’s economy overall. “Sixty percent of our Perry Ranes. has slowed, but remodeling is business is in Canada, and very strong. That’s the reason we’re up 40% here,” says our sales are up,” he says.

Anastasia Marcakis, Sales manager. “Our Travis is anticipating another good sales are up only 30% in the U.S., but our year in 2020. “Dealers are adding prodbusiness is growing there.” Marcakis, too, is ucts, and that is very encouraging,” Ranes concerned about the possible discounting says. “Canadian dealers are making room and dumping of non-2020 models, in their showrooms for more wood stoves. especially since Supreme’s only products We’re looking for solid sales growth next year are wood-burners. “We’ll see some small on both sides of the border.” But Ranes is sales growth next year because of our new concerned there may be a “blood bath” in products,” she says. the hearth market with dealers selling off The Canadian economy is “shaky,” but the non-2020 models into next year on both hearth products market is strong, according sides of the border. to Marcakis. “We’re seeing more consumer Sales of gas products are up for Travis, and confidence, and it has been a nice year for wood-burner sales are off “some,” while pellet dealers. Gas has taken more of the hearth stove sales are flat in Canada as well as in the products market, but that seems to have U.S. Travis’ entire wood-burning line is now stabilized now.” Unlike most manufacturers, 2020-certified to the cordwood standard.

Supreme is experiencing growing sales in the The “lion’s share” of Travis’ sales have West with slower action in the East. traditional styling, says Ranes. “But Contemporary-styled wood stoves are a contemporary styling is still growing fast trend for Supreme. Introduced in August, in Canada, and dealers want more modern the company’s new Novo series includes products. The Canadian market in gas three sizes of contemporary wood stoves hearth products always seems to be the that can be set on the floor or on a podium trendsetter in design.” with a wood storage area. “Some regions Ranes does not see the exchange rate of Canada still want traditional styling, having much effect on sales. “Canadian but contemporary is growing,” she says. dealers are selling higher-end products, and Supreme is ready for 2020 with most of they are selling value, so concerns about its line already certified to the 2020 Step price disappear.

2 standard without catalytic combustors.

“We’re battling environmental issues Marcakis is concerned about the and regulatory challenges everywhere,” says confusion of consumers with wood-burning. Ranes. “Those pushing these issues know “They are hearing the message that wood- so little about our new products, and they burning is not good for the environment are talking from emotion rather than facts. and will be banned,” she says. “We have to Dealers need to take a more active stance be more aggressive about telling the story of on local affairs. That will have a great and our clean-burning, very efficient products.” positive affect for our industry.”

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The Canadian Hearth Business

L to R: Garry with Martin on his lap, father Edgar, and grandfather Theo.

A GOOD STORY TO TELL Miles Industries has a long, and successful, history of promoting gas-fueled radiant, zone heating.

I

By Bill Sendelback

t began in the ’20s, the 1920s, that is. The history of Miles Industries, manufacturer of Valor brand gas hearth products, goes back four generations. Today, the company, now headquartered in North Vancouver, British Columbia, offers a complete line of vented gas fireplaces, freestanding stoves, and fireplace inserts engineered specifically for the North American markets with modern technology inconceivable so many years ago.

Brothers Paul and Martin Miles now own the long-time family business. Paul is president, and wears a second hat as director of Sales and Marketing. Martin is director of Product Development.

Miles’ history began in the 1920s with the brothers’ great grandfather drilling

32 | OCTOBER 2019 | www.hearthandhome.com

gas wells and operating a hardware store in Saskatchewan. “Our great grandfather was really the gas company in that area,” according to Paul. “He drilled the wells, brought gas to the town, sold the gas, and the gas appliances.”

That venture also employed the brothers’ grandfather, and later their parents, Garry and Barbara Miles, who went on to found Miles Industries. “By the 1940s, our father, Garry, as a teenager read gas meters and sold and installed gas appliances, so Dad really cut his teeth on gas.”

Then, in the 1960s, Garry worked for a company selling industrial radiant heating equipment. That was the beginning of Garry Miles’ belief in radiant heat, a belief that today is at the core of the company’s Valor products.

“The idea that the most efficient, most effective, and most comfortable way to heat a home is with radiant zone heating, came from Garry Miles. We think this provides the most controllable comfort level rather than just blowing hot air.”

— Paul Miles —

One large customer was Bethlehem Steel.

Garry removed forced air heaters from Bethlehem’s operations, and replaced them with radiant heaters, resulting in cutting Bethlehem’s heating fuel bills in half.

“That formed a lot of my father’s opinions on heating,” says Paul. “He found that radiant heat would make homes more comfortable than having a central heating system blowing air around. We still believe this.”

Garry Miles went on to form Miles Industries in 1977 as an importer and distributor of hearth products in British Columbia. Paul and Martin’s grandfather also had been the Ashley Wood Stove sales agent for western Canada in the 1960s, and with that background, in 1977 Miles Industries took on the Suburban Woodmaster products and a few other hearth product lines. Martin Miles soon joined his father as a sales rep, selling primarily wood stoves, including sales through Miles’ own retail store in North Vancouver.

Then, in 1980, Garry Miles discovered Valor Heating’s gas hearth products while visiting family in England. Valor was then the leading brand of gas fireplaces in the UK, with its beginnings dating back to 1890. Garry, in 1984, negotiated the rights to import Valor products into British Columbia. Miles Industries began with Valor by selling Valor’s famous Homeflame, the world’s first direct-vent gas fireplace, called “balanced flue” in the UK. By 1985, Garry was importing into Canada most of the Valor line. While Garry and Martin were setting up dealers in the West, Paul joined the family venture setting up dealers in the East from his base in Toronto. While dealers were being set up, Garry worked with the Canadian Gas Association (CSA) to gain product certification for the new Valor models.

In 1986, Miles Industries introduced North America’s first power-vented accessory for the Valor Homeflame model,

Garry Miles.

The company’s first gas fireplace.

The Homeflame advertisement from 1986.

Click here for a mobile friendly reading |experience www.hearthandhome.com OCTOBER 2019

| 33

The Canadian Hearth Business a groundbreaking accessory developed

by Garry and Martin. Garry, now 89, has since retired, but he keeps in touch with the company he founded.

While the Miles family was selling Valor products in Canada, in 1987 Valor itself opened an operation in Tennessee to sell Valor products in the U.S. “But we were more successful,” says Paul. “Those quirky English styles sold better in the Canadian market than they did to U.S. consumers.”

Miles Industries began distributing Valor models on the West Coast of the U.S. in 1991, with the Valor Legend, a gas insert line built in the UK as Valor’s first dedicated product designed for North American markets. Then, in 2001, Miles Industries began exclusive manufacturing of Valor products to be sold throughout North America. That remains the case today.

“Everything we now sell is of our own design,” says Paul. “There is no crossover anymore between the UK product and

our line over here. We keep in touch and Featuring its radiant heating, Miles exchange Christmas cards with Valor, Industries also adds secondary heat exnow part of the Glen Dimplex Group in changers to extract more natural convection the UK, but we are totally independent.” without using fans. “Some areas are prone Miles Industries’ product development to power outages,” says Paul. “Customers direction goes right back to founder appreciate the fact that our products will Garry Miles’ idea that the heat even when the power goes most efficient, most effective, out and gas continues to be and most comfortable way to available. This is a level of secuheat a home is with radiant rity for our customers. zone heating. “We think this “Our products today tend provides the most controllable to sell in the medium to upper comfort level rather than just price ranges, starting at about blowing hot air,” says Paul. $2,000 up to about $8,000.

“We design our models to We certainly don’t sell on price. have controllable heat. You Martin Miles.

We offer a pretty wide range don’t want a stereo with just of products, and we think we one volume level, or a car present a better quality product with just one speed. We build in as much with better performance at a great value.” range of heat output as possible so our Contributing to the effectiveness of customer can find just the right comfort Miles Industries’ Valor products is the level, and radiant heat is important to that company’s patented Auto Fire System. controllability.”

This bi-metallic damper system has been adapted to direct-vent, co-linear venting, allowing combustion air for the unit to “We design our models to be opened up for cold starts, and then have controllable heat. You don’t automatically be throttled back as the unit heats up for maximum efficiency. want a stereo with just one “This system probably gives us four or five more percentage points of overall volume level, or a car with just efficiency,” Paul adds. “But while we add one speed.” — Paul Miles technology to improve our efficiencies, it’s frustrating to see some companies inflating their advertised efficiencies by maybe 10 points and then getting away with it.

We definitely need to see these efficiency ratings cleaned up in our industry.”

Yes, Miles Industries is now a manufacturer. But it’s the company’s history as a distributor that has guided its sales paths. “We really came from a distribution background, and that has formed a lot of how our company has developed,” says Paul. “That background colors how we work and why we have always been a dealer-focused company.”

It may be that focus on its dealers that has resulted in double-digit annual sales growth for the last 20 years. “We like dealers who can sell the benefits of our products. We tend to develop longterm relationships with our dealers, and we don’t like dealer turnover. As our sales have grown, we have not done that by adding more dealers or loading up a Valor LX1 Pier Gas Fireplace. territory. We do it by selling more through

34 | OCTOBER 2019 | www.hearthandhome.com

“It’s amazing how many of our best ideas have come from our dealers.”

— Paul Miles —

Valor Legend G3 Insert Series.

each dealer. We like to give our dealers market space to promote our products.

And we don’t do multi-channels.”

Paul tells dealers that if any of their suppliers use the term “channel management” to be “very suspicious. That can mean that the supplier is going to sell its products to the Big Box guys or to online sales outlets, or even to guys in vans.”

Paul Miles puts the confirmation of the company’s product direction and development at the feet of his dealers. “It’s amazing how many of our best ideas have come from our dealers,” says Paul. “With our Heat Shift System that offers a ducted heating system for our linear fireplaces, a lot of that design actually came from our dealers. That relationship with our dealers has really helped us recognize new ideas and concepts.”

Now, with almost 1,000 dealers throughout North America, most of those dealers purchase dealer-direct. Miles Industries maintains warehouses in North Vancouver, BC; Seattle, Washington; Portland, Tennessee; and Milton, Ontario.

The company has 25 independent manufacturers’ representatives across North America selling to and servicing its dealer

network. “I am a very firm believer that the relationship between the sales rep and the dealer is critical,” says Paul. “That is where it all happens. The guys back in the boardroom or the office think they can pull levers and make things happen, but it’s the relationship between the rep and the dealer that is critical. Our reps probably have the most important job in our company.”

While many manufacturers build products complete and from scratch, since 2001 when the company began its own production, Miles Industries has found it more efficient to rely on local fabricators to build its fireboxes. “We are fireplace nerds, not metal bending experts,” according to Paul. “We’re good at product ideas, and we like to develop products. Our local business partners handle all of our metal work; they are the metal-bending experts.

These guys have all the equipment needed for fabrication, so we don’t have to worry about keeping up with the vast amount of expensive equipment needed. We do the assembly. This arrangement, frankly, has been one secret of our success.”

Between Miles Industries’ workforce of about 50, and the employees of its business partners used to fabricate the

company’s products, Paul Miles estimates the total workforce to produce the Valor products at more than 200.

“In our operation, we don’t vary our employee head count. We don’t want to lay people off in the off-season and then try to hire them back again in the busy season. We want to keep those experienced people, so we allow for inventory build-up in the off season in order to keep our people.”

Paul Miles is concerned about the recent attacks on gas products as emitters of greenhouse gases. “I am not sure that people really appreciate just how clean natural gas burns. You can burn it in your kitchen stove, unvented, and be comfortable. People love to cook with gas. It’s a hundred times cleaner than burning with wood.

“With zone heating, you can effectively heat a house and actually cut down the amount of fuel you use. You are heating only about the 20% of the home you are in, and actually using less energy than if you used your central heating system.

Potential regulations of natural gas are of concern, but we feel that if we burn clean fuel, and burn it efficiently, we have a good story to tell.”

www.hearthandhome.com | OCTOBER 2019 | 35

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The Canadian Hearth Business

MORNINGS IN THE TUB For some it’s yoga, for others meditation, but for the Bourques it’s hot water and planning the day that leads to success (yep, even throughout the frigid Canadian winters).

By Bill Sendelback

W

hat better way to start each day than having coffee in a hot tub and planning the day to come.

That’s exactly how Norma and Pat Bourque prepare for their day as owners of Maritime Fireplaces in Moncton, New Brunswick, Canada. “We have our discussions, and Norma gives me my marching orders for the day,” says Pat with tongue in cheek. “A happy wife is a happy life. And this is a wonderful way to start the day.”

This might be a somewhat unconventional way to start each day’s

38 | OCTOBER 2019 | www.hearthandhome.com

business, but it may be helping the success of Maritime Fireplaces. Offering wood, gas, pellet, and electric hearth products, plus grills, kamados, cultured stone, other outdoor living products and chimney sweeping, the company has enjoyed 5% annual sales growth the last few years after surviving the 20072008 recession and today’s mediocre Canadian economy.

“It was a pretty rough time during that recession,” according to Pat Bourque, “but we had great help from one of our distributors, Compact

Appliances in nearby Sackville, New Brunswick. About the same time, we read the late Tom Pugh’s book ‘Blueprint for Success.’ We took that as our bible, and it really changed our business for the better as we learned about profit margins and how to make money. Without this knowledge and help from our distributor, we may not have made it.”

Pat and Norma Bourque’s morning ritual: coffee and planning session in the hot tub.

PHOTOS: ©2019 DANIEL ST LOUIS. DANIELSTLOUIS@ICLOUD.COM. WWW.DANIELSTLOUIS.COM.

With 3,000 sq. ft. of showroom space Maritime Fireplaces has ample room for displays and traffic.

Pat Bourque was working for his father as a wholesale distributor for Lotto Canada lottery tickets when, in his mid20s, he found himself out of a job. A friend saw a newspaper ad for a chimney sweep business for sale in Moncton, a business started in 1978. Bourque had absolutely no experience in the sweep business, but in 1980 he and two buddies bought the business, basically just a van and a customer list.

With a few bucks saved, Bourque bought an apartment building in Moncton that included commercial space on the first floor, part of which would now house the recently purchased sweep business. The trio in 1981 visited the first Canadian Wood Energy Institute trade show in Toronto where they discovered and purchased PGS brand wood stoves, displaying them in their new office, and kicking off the new company’s entry into more than just chimney sweeping.

The next few years were eventful.

In 1983, the wood-framed apartment building caught fire and was almost destroyed. Another friend, George LeBlanc, helped Bourque tear down the burned building and move the operation to Pat’s parents’ basement until they could find a suitable spot to rent. LeBlanc joined the team, and today is general manager of Maritime Fireplaces. The other two original partners are no longer with the business.

After a few years as a renter, Maritime Fireplaces in 1989 finally moved to its current location. “The fellow we bought the sweep business from in 1980 comes by every few years and says, ‘Gee, after seeing the company now, I kind of wish I would have stuck with it’,” says Bourque.

Bourque may have been new to retailing when he bought the business, but even then he was well aware of the need for customer service and the safe installation of chimneys and fireplaces. “We got involved with the fire department and the steering committees

for the province of New Brunswick to help develop the first protocols for safely installing chimneys and hearth products and having them inspected, a precursor to Canada’s Wood Energy Technical Transfer (WETT) program.”

Bourque became active in the thenCanadian Wood Energy Institute (CWEI), which later became the HPBAC, and later became its president; LeBlanc stayed with the training and educational side of the hearth products industry. Today he still is an instructor for the WETT program and former national president.

TOP RIGHT: In the foreground, two Valor inserts.

Click here for a mobile friendly reading| experience www.hearthandhome.com OCTOBER 2019

| 39

The Canadian Hearth Business “The values we hold to in our business really began way back then,” says Bourque, “honesty, teamwork, taking care of our customers, and making sure our products are installed and operated safely.

Sarah Kennedy, company vice president and the Bourques’ daughter, with her daughter Sydney.

We occasionally run into problems, like any other company, but in the end, we promptly tackle and fix the problem.”

Hearth products are almost threequarters of Maritime Fireplaces’ sales with outdoor living products, including grills and fire tables, next best at 16%.

“We’ve dabbled at outdoor kitchens over the years,” says Bourque. “In our climate we enjoy what summer we have, and this seems to be a growing category, especially outdoor fireplaces, but it is still not very important for us. We do, however, plan to expand our building to put in an outdoor living display area.”

Maritime Fireplaces already has a “huge” display of Big Green Eggs, and wife Norma is known locally as the “egg lady” because of the pulled pork sandwiches she prepares on a Big Green Egg at many area golf tournaments supporting the community.

While sales of wood-burners compared to sales of gas models used to be 60/40% for Maritime Fireplaces, today gas hearth product sales are almost twice that of wood-burners, and electric fireplace sales are now more than double sales of pellet stoves, and growing.

In the foreground is the Ambiance p665 five-burner grill by Napoleon.

40 | OCTOBER 2019 | www.hearthandhome.com

“We’re always looking at other products that may have potential to grow our sales,” adds Bourque, “but we really have not found anything. We tried HVAC from thermal heat pumps to central furnaces, but we dropped that effort.”

Marketing in Moncton Moncton is not a heavily populated area, totaling only 72,000 in the city and 145,000 in the market area. Even so, after purchasing the business in 1980 with only 1,000 names on its customer list, Maritime Fireplaces today counts 40,000 homeowners as customers, or almost one-third of the area’s population, many because of the company’s A-1 Chimney Sweepers division.

“Our economy has been pretty steady for the last several years,” says Bourque, “and much of our business is with new construction and home renovation. We have a lot of new-home construction, but it is not the larger housing projects using 200 or 300 fireplaces. Our subdivisions are houses built one at a time by custom-home builders.” Bourque says that his area has an aging population, “so our electric fireplace business has been good, going into condos and apartments.”

Promoting their sales to homebuilders, Bourque’s staff works with the local homebuilders association. LeBlanc even has served as president of the association.

“We’ve supported the association from our beginning,” says Bourque, “and have been displaying in its home show for 29 years. This is a very popular show, and our participation has been very profitable for us.

“Whether it’s for homebuilders or consumers, we do everything from budgeting to installing gas lines and venting.

And if finish work is needed, we can box in the unit and finish it off with the cultured stone we offer. We sell the wall, not the just the unit.”

This all involves Maritime Fireplaces having its own service and installation crews. “We tried subbing jobs out, but when we did, we did not have enough control over the job to ensure that the work was done correctly and safely,” Bourque comments. “We want to have that personal touch with the customers to make sure they are happy with what we have done. And we definitely count our service and installation efforts as a profit center.”

In the relatively small market area of Moncton, Maritime Fireplaces does not have a lot of competition. Most of that competition comes from a Costco store, hardware stores and what Bourque describes as a “semi-specialty store” selling appliances, mattresses and kitchen products.

“It’s more of a general store.” No matter the competition, Maritime Fireplaces sells on the knowledge and expertise of its staff. “Our sales people, who we call ‘sales advisors,’ are there to advise the customer on what is best for that customer’s home and what fits with his lifestyle,” says Sarah Kennedy, the Bourques’ daughter and company vice president. “We don’t push products. Instead we sell what is best for the customer.”

“We sell on technical issues,” offers Bourque. “We talk about safety and safe installations more so than the product, but of course we point out the quality of the products we offer. We know our competition, and we are constantly adjusting our product offerings to the needs of the customer so we can stay up-to-date and ahead of the curve.”

Pat and Norma Bourque have visited many hearth products dealer showrooms across North America looking for ideas to improve their 3,000 sq. ft. showroom and make it different. “We visited one California showroom, and it must have had 40 black boxes shoved against the wall,” says Bourque. “Everything looked the same.”

Bourque has divided his showroom into different sections with gas products in one area, wood products, including pellet models, in another, a large display of electric fireplaces in a separate area, and an indoor display of outdoor living products featuring the Big Green Egg. “With our growing sales of electric fireplaces,

The store boasts a large display of Big Green Eggs.

In the foreground at right, Ambiance Intrigue with non-combustible Ambiance beam over the top.

www.hearthandhome.com | OCTOBER 2019 | 41

The Canadian Hearth Business we have devoted quite a bit more display floor space to electric models than what we have seen in other dealerships,” says Kennedy. “We do that because we see how the demand for electric fireplaces is growing.

“We use lots of stonework, lots of tiles, a variety of mantels, and lots of different products to make each display look like one you would want in your home. And we are constantly changing and updating our displays.”

Store Name: Maritime Fireplaces, and A-1 Chimney Sweepers

% Gross Sales by Product Category: Hearth: 72% Outdoor: 16% including grills Cultured stone: 12%

Address: 246 Halifax Street, Moncton, NB E1C-9S3 Number of Stores: One Owner: Pat Bourque Key People: Sarah Kennedy, vice president, George LeBlanc, general manager, and Jody Savole, sales Year Established: 1978 Web site: www.maritimefireplaces.com E-mail: pat@maritimefireplaces.com Phone: (506) 857-2099 Fax: (506) 859-4410 Number of Employees: Full-time: 27 Part-time: varies 1–2

42 | OCTOBER 2019 | www.hearthandhome.com

Square Footage: Showroom: 3,000 Warehouse: 4,000 Product Lines Carried: Hearth: Valcourt, Supreme, Napoleon, Renaissance, Piazzetta, Timberwolf, Heatilator, Harman, Heartland, HearthStone, Enerzone, Amantii, Dimplex, Jøtul, Regency, Valor, Ambiance, ICC/RSF, Marquis, Town & Country, and SÓLAS. Outdoor: Big Green Egg, Napoleon, Kamado Joe, Saber, Louisiana Grills, Kingsman, and The Outdoor GreatRoom Company Percentage of Gross Sales for Advertising: 2%

While Pat Bourque is president, daughter and heir apparent Sarah Kennedy is vice president managing Sales and Human Resources. George LeBlanc is general manager overseeing operations, service, and installations.

Bourque’s wife, Norma, better known as the “egg lady,” considers herself parttime after giving Bourque his morning “marching orders” each day. “Although we have 27 people, we’re still a small business,” Kennedy adds, “so we don’t do just one thing around here. We wear many hats.” And some of those employees have been trying on many hats for as long as 37 years, while the average length of service among employees is 15 years.

Like many employers throughout North America, Maritime Fireplaces has trouble hiring people who can and want to work. “We have three openings right now we are trying to fill, and it’s a challenge,” says Bourque. “We are not getting nearly as many job applicants as we did a few years ago. And when we interview, we find that many have no real interest in working. I’d certainly advise dealers to really focus on their customers to be successful,” Bourque says, “but keeping your employees and their loyalty is also important.”

Like most retailers today, the Bourques have forsaken most traditional advertising to concentrate on word of mouth and social media. “We have really focused on our reputation and word of mouth,” says Sarah Kennedy, “and we are seeing just how important these are to our success.”

Maritime Fireplaces is using more and more social media, including Twitter and Facebook as well as its website. What little traditional advertising remains in the company’s promotional efforts includes radio spots “a couple of times a year” and mailings of promotional flyers provided by its supplier manufacturers. Last year the company held a Big Green Egg Fest weekend promotion. “It was a lot of fun and very successful,” adds Kennedy.

“I am very grateful to our industry, and the help of everyone, that I have been able to make it through the tough times and stick with it as long as I have,” says Bourque. “I am fortunate to be in a great industry with many wonderful people.”

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The Canadian Barbecue Business

44 | OCTOBER 2019 | www.hearthandhome.com

PHOTO: ©2019 JAMEN RHODES. WWW.JAMENRHODES.COM. LANDSCAPE: JEFF CAMBPELL. VISION SCAPE TEAM. WWW.VISION-SCAPES.CA. BUILDER: ALLOY HOMES. WWW.ALLOYHOMES.COM. CALGARY, ALBERTA, CANADA.

What’s Cooking

in Canada?

Canadian barbecue distributors talk trends and challenges.

By Lisa Readie Mayer

I

n a country that spans more than 5,000 miles and six time zones, has a climate that ranges from temperate to arctic-like and snowy, and is home to an estimated 37 million people spread over dense cosmopolitan cities and sparsely populated rural communities, the barbecue business is as varied and disparate as Canada itself.

So, who better than distributors to offer insight into the barbecue category in the country? Calling on retailers throughout a broad region, or in some cases, nationally, provides distributors an unmatched perspective on outdoor cooking and living trends, what’s selling and what isn’t, what successful retailers are doing right, and the challenges they’re facing in the trenches.

Hearth & Home spoke with a number of Canadian barbecue distributors and other in-the-know insiders to get a peek into what’s happening in the category. According to these experts, climate and currency are two of the biggest factors shaping consumer attitudes toward and purchases of outdoor cooking and outdoor living products. Other issues tied to tariffs, cross-border shopping, regulations on natural-gas greenhouse gas emissions, and the economy in oil-producing regions, also are in play, or may be in the future.

Here’s what they had to say: Click here for a mobile friendly reading| experience www.hearthandhome.com OCTOBER 2019

| 45

The Canadian Barbecue Business

GORDON FLAGLER

manager, Cookstoves Canada Orangeville, Ontario In the seven years since Cookstoves Canada was founded as a sister company to 40-plus-year-old Canadian hearth distributor The Foundry, the outdoor cooking products distributor has, out of necessity, adapted in response to changes in the marketplace. Manager Gordon Flagler says, initially, the company “did extremely well” distributing high-end gas grills thanks to a strong Canadian dollar on par with the U.S. dollar. But, as the dollar declined (it is currently valued at approximately $.75 CAD to $1.00 USD), Cookstoves Canada dropped its pricey lines and sought out more competitively priced products.

Flagler says that while Canadianmade grills offer price advantages in the marketplace, the few domestic barbecue manufacturers typically have longstanding distributor relationships, making the lines unavailable to his company. “Unlike the hearth side of our business, with grills, we had to look elsewhere and import,” he says.

“So, we took a risk and looked for fresh, compelling, value-priced, high-quality lines from newer manufacturers.”

Today, Cookstoves Canada distributes seven lines, including Saber Grills, Green Mountain Grills, Ooni Pizza Ovens,

Everdure by Heston Blumenthal, UNA tabletop grills, Morsø Outdoor, and Infratech Heaters. “We are now positioned in the heart of the market with price points from $250 to $5,000,” Flagler says. “We have something for everyone in terms of price and fuels. The strategy has been very effective and we’ve had significant growth every year.”

He says, “The barbecue business today is incredibly international. We are dealing with companies headquartered in Scotland, Holland, Denmark, and the U.S. Some of the product is produced in

“It is helpful that there is an ‘international influence in Canada’ and ‘Canadians are pretty open to new things.’”

— Gordon Flagler

Asia. It’s a global industry today.” He says it is helpful that there is an “international influence in Canada” and “Canadians are pretty open to new things.”

Wood pellet cooking and pizza ovens are two “very strong trends,” according to Flagler. He says he has seen “huge growth” in sales of Green Mountain Grills and Ooni Pizza Ovens this year, and “steady” sales of

The 4K models from Everdure by Heston Blumenthal.

46 | OCTOBER 2019 | www.hearthandhome.com

gas-fueled Saber Grills. “With Saber the big thing we promote is that there are no flare ups. That’s important in our climate. We have hard-core Canadian barbecuers who cook out year-round, even when they have to shovel a path to the grill. But nobody wants to stand out in the cold to watch the grill for flare ups. We try to be cognizant of product features and benefits that are of specific interest to Canadian consumers.”

Another factor unique to Canada, according to Flagler, is a very high rate of second-home ownership. “A good percentage

of second homes are not winterized so they’re not used year-round. As a result, a lot of people want portable stuff to take on the boat or store inside the cottage for the winter.

We have short summers, so when the weather is good, people want to take advantage. It’s important (for dealers) to connect with the recreational leisure market.”

Flagler says this short summer season limits outdoor kitchen sales in his territory, and cart-based grills dominate. “Outdoor kitchens do better in more moderate climates,” he says.

He reports “an unbelievable change in attitude and sophistication” among Canadian retailers selling outdoor cooking products. “There were only a small number of specialty barbecue shops in Canada when we first started seven years ago, but there are really strong barbecue stores today,” Flagler says. “Even the hearth stores have stepped it up and added entire barbecue departments to create a significant, second selling season. We work with many smart, savvy retailers and we’re seeing tremendous growth in the barbecue business.”

The natural-gas regulations elsewhere in the country have not infiltrated the communities in Flagler’s territory, but he is monitoring the situation. “I don’t think propane will be impacted, but long

term, there is a push in Canada to convert to electricity. There is very little electric (barbecue) product available today – it’s a really small market. There is potential, but no (manufacturer) has really jumped into the market.”

Flagler has observed a decline in the number of Canadian retailers attending the annual HPBExpo, an issue he attributes to currency rates. “It’s expensive to travel to the U.S.,” he says. “We have our own show for dealers and they rely on us to investigate Expo and trust our experience regarding taking on new products.”

JOHN McADAMS

owner, Northwinds Marketing Summerstown, Ontario After nearly two decades as a hearthshop owner and the largest retailer of Big Green Eggs in the Québec province, John McAdams bought the nationwide Big Green Egg Canada distributorship, Northwinds Marketing, in 2017. He recently relocated the company headquarters to a larger facility in Summerstown, Ontario, an aptly named spot for a barbecue company.

He says business was “tricky and kinda funky” this year, something he attributes to the chaos of the move and an unusually slow early summer. After a busy March and April, McAdams says the market was soft in May and June, but picked up again in July and August. He says bright spots included a 10% growth in the number of new dealers opened this year, and approximately 15% growth in charcoal fuel sales for the second year running.

McAdams says the trend of cooking over natural-lump charcoal is growing.

“People like that it’s not push-button, but more interactive. It’s more mainstream to use charcoal today,” he says. “There are a lot of kamado competitors, but we are the original. The serious griller comes to us.

“There is a growing trend of people adding a Big Green Egg as a second grill to the gas grill on the deck,” he continues.

“They know gas grills are going to fail or rust and any grill with an electronic command center will fail eventually, so they appreciate that our grill is simple, stands the test of time, takes ten minutes to light, and is versatile enough to sear, smoke, bake, roast, or make a pizza.”

McAdams credits dealer “Eggheads who love the growth to his eight “Eggbasproduct are the best salespeople,” sadors” (a.k.a. salespeople) who he says. “If you get the right people offer support and training, you can have real success. The conduct demos and classes, same is true of retail salespeople; and connect with consumwe tell our dealers to hire people ers through social media. He who love the product.” employed a novel approach to The company also has taken hiring the new salespeople. “I an out-of-the-box approach to found four of these guys on John McAdams. targeting new dealers. Although Instagram,” he says. “They are specialty hearth, barbecue and ‘Eggheads’ who were always pool dealers remain a key focus, posting about the amazing things they the company has expanded to other channels were cooking, so I called them up and like butcher shops, craft breweries, farm asked, ‘what do you do?’” One Instagram- cooperatives, and western gear retailers. mer-turned-Eggbassador – a school teacher “Butchers are one of our biggest retail

“Our grills are NSF certified, so we try to get them into a restaurant kitchen and then try to open a retail dealer nearby.”

— John McAdams

STIHL Timbersports event.

who works for McAdams during summer breaks and on weekends during the school year – grew sales 30 to 40% in the Maritimes region, according to McAdams. Another is a corrections officer who works 7 days on and 7 days off, and has opened up a host of new dealers in the Manitoba region.

segments,” McAdams says. “And, craft breweries will put it on their deck and smoke food to eat with the beer. We’re getting a lot of placement and good exposure in these types of channels and they continue to develop for us. There are a lot of smart retailers selling eggs in atypical channels.”

www.hearthandhome.com | OCTOBER 2019 | 47

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The Canadian Barbecue Business He says restaurants have been another successful pathway to sales. “Our grills are NSF certified, so we try to get them into a restaurant kitchen and then try to open a retail dealer nearby,” he explains. “When people try the food in a restaurant, it leads to retail sales. The bridge between restaurant chefs and consumers is important; it’s like a thirdparty endorsement.”

are used to selling barbecues on price and believe the barbecue customer won’t want to spend that kind of money. It’s not the case.”

Rosvold says sales have been flat in the gas grill market and are trending downward in charcoal kamado grills, a trend he attributes to “product lifecycle” and escalating prices tied to currency rates.

“The grill that was $1,000, is now $1,400 or what was $1,800 is now $2,500, and

“The company’s most successful dealers are actively cooking on grills and regularly promoting on social media.”

— David Rosvold

DAVID ROSVOLD

president, Northwest Stoves Abbotsford, BC “We’re experiencing huge growth in the pellet category,” says David Rosvold, president of Northwest Stoves, a distributor of hearth and outdoor living products, in British Columbia, Alberta and the Yukon territories.

“Pellet grills have been around a long time, but people are just discovering them. It’s a good time to be in the pellet game and we are doing really well with Green Mountain Grills. They put us in a good spot and the fuel sales keep people coming back into the store.

All signs are leading to continued growth in the pellet category.”

Rosvold says, besides hearth shops, he is seeing large gains in pellet grill sales in nontraditional channels. “Some of the biggest sellers are in the outdoor recreation channels, including pool and spa dealers, sports stores, and outdoor-enthusiast retailers,” he says.

“Someone selling recreational vehicles is a fantastic pellet grill dealer. Turns out, many guys who ride ATVs and motorbikes also love outdoor cooking. When someone spends $10,000 on a motorbike, it doesn’t seem like much to spend another $1,000 on a grill. Same with someone who just bought a $15,000 hot tub; a spa dealer has no problem selling that person a $1,000 grill. Some of the traditional hearth dealers

50 | OCTOBER 2019 | www.hearthandhome.com

people are not as willing to do that. There is a consumer mentality that $1,000 is the limit for a good grill, and I think that is hurting sales. In the consumer’s mind, they look at the retail price against the intrinsic value and may eliminate a grill based on price. There are gas grill companies out there reengineering product to keep the price stable.”

According to Rosvold, the Outdoor Room concept is starting to catch on in some areas, but cart-based grills outnumber built-ins by a wide margin in his territory. “One of our dealers in Vancouver does well with it, but most are not really strong in outdoor kitchens,” he says. “In our region, the only way you can achieve an outdoor living space is by creating an enclosure and installing outdoor heating and vent hoods. But, we are always looking at how we can grow our outdoor living product mix Zack Fisher. from a strategic standpoint, so we will continue to consider (more outdoor kitchen products).”

Currency rates and cross-border shopping are ongoing challenges faced by Rosvold and his dealer partners. “Because of the power of the Internet, a consumer will end up on a website from the U.S. and

bring in a much lower price to show their local dealer (in Canada),” he explains. “I’m 10 minutes from the U.S. border. People here will cross the border and see a retail price of $999 in the U.S. and same product offered at $1,400 or $1,600 in Canada.

Canadian dealers are constantly having to explain why their price is higher – the 30 to 35% exchange-rate difference, the duty, the freight. It confuses the marketplace and adds a level of complexity to the sale.”

He says the company’s most successful dealers are actively cooking on grills and regularly promoting on social media.

“They’ll often have an employee who becomes the grill guru at the store. As a distributor, we need to make that grill guru an ambassador for our brands; someone who loves and is loyal to our product,” he says. “We regularly do barbecue lunches and training sessions for our dealers’ staff because salespeople are more likely to sell what they use and are comfortable with.”

ZACK FISHER

vice president of Sales Compact Appliances Sackville, NB “Sales are slightly down across the whole gas grill category in our area,” according to Zack Fisher of Compact Appliances, a distributor of hearth, barbecue and outdoor living products in the Atlantic region. “We had a very late start to the season in Atlantic Canada,” he says. “It was a very cold May and June and we didn’t see much activity until later. Dealers had brought in lots of inventory, but the sell-through was late.

Once the season started, they moved grills, but it didn’t make up for lost time.

“Dealers are feeling the competition in the gas grill market – it’s as competitive as it’s ever been,” Fisher says.

“Besides Big Box stores, there are lots of other channels now selling barbecue grills, including appliance dealers, pool and spa dealers, and more. Plus, online sales. There’s lots of competition out there.”

He says, while gas grill sales were “off,” pellet and charcoal grills had “substantial

growth” this year. “We have been watching U.S. trends closely and added lines of pellet grills and charcoal kamados. “Kamados are well understood in this market, and pellet grills have taken off in the last couple years,” he says. “I think people who are buying pellet grills are passionate about trying something different.”

Historically, the company has done “very little” outdoor kitchen business due to harsh winters in the region. “We are still very heavily into carts,” says Fisher, “but I’ve been pleasantly surprised to see more sales of high-end built-in grills.” He says, currently, consumers prefer custom masonry outdoor kitchen islands over modular outdoor cabinetry.

He says his dealers have really “stepped up their marketing game” in recent years.

“Store cookouts and demos are at an alltime high, which is something we encourage as a company,” he says. “They are doing a great job on social media offering helpful tips and recipes, sharing photos of what they’re cooking, posting videos. A lot of the interest and awareness surrounding charcoal and pellet grills is driven through local social media. This is not being done with gas grills to the same extent.”

“Today’s consumers are eager foodies and successful dealers connect with them by partnering with local experts such as farmers, foragers, and chefs.”

— Amber Percival

Percival says her company’s grill sales break out to 30% on carts and 7% built-ins for outdoor kitchens. “What we experience is different from other areas,” she says.

“Because of the nature of the products and the price points we sell, we spend a lot of time targeting people who build outdoor kitchens. We have a few hearth and barbecue stores that offer outdoor kitchens, but we also work with a lot of award-winning landscapers and designers for whom the outdoor kitchen is part of an entire big project.

“One issue we are facing is that there are very few people in our territory who have the skill set to design and build outdoor kitchens,” she says. “The best dealers in our market offer soup to nuts services – from design to ongoing

maintenance after the build. But, many of our dealers are understaffed and lack people with the confidence and ability to design an Outdoor Room.”

Percival calls turnkey modular outdoor kitchens “fantastic options from companies that can also help dealers with design support,” but says most homeowners in the region remain interested in stone finishes. “We have a huge cottage-home market – it’s all lakes here – and people lean to rustic stone finishes, even if they want a modern look. Masonry is still an expertise that’s required.”

She says outdoor cooking is going through a “renaissance,” fueled in part by exposure on social media. “Bloggers are tremendous influencers and show what’s possible,” she says. “Today, a wood-burning

AMBER PERCIVAL

president, Urban Hearth Perth, Ontario Despite a poor start to the year due to lingering winter weather, sales of outdoor products were up about 35%, according to Amber Percival, president of Urban Hearth, a distributor of Twin Eagles and Delta Heat grills, Firegear Outdoors fire pits and fireplaces, and Alfa pizza ovens, throughout Ontario.

“We came to market differently this year; we added a new salesperson, so that freed up someone to focus on the outdoor side of the business,” Percival explains.

“We have been selling outdoor products for eight years and the market is now catching up. Outdoor living is a growing trend. Customers are keen to buy product that will last and support the lifestyle.”

The company added Alfa pizza ovens to its product offerings this year, in response to increasing dealer demand over the past few years, according to Percival. “The line has been doing very well,” she says.

Example of an Alfa Oven Demonstration.

www.hearthandhome.com | OCTOBER 2019 | 51

The Canadian Barbecue Business

53%

of Canadian digital buyers bought goods from the U.S. and 30% bought from China.

Urban Hearth’s Sales manager Colleen Zedo cooking on the Twin Eagles 36-inch Grill.

pizza oven, a teppanyaki grill, and a highend gas grill might all be included in an outdoor kitchen – and may even all be used during the same party. People are connecting to food in a different way. They don’t just make a burger. They get the meat from a local farmer, grind it themselves, season and cook it in a special way, and then photograph it, and share it online.”

She says today’s consumers are “eager foodies” and successful dealers connect with them by partnering with local experts such as farmers, foragers, and chefs. “They can teach customers stuff like how to make homemade sourdough bread in the pizza oven,” she says. “You want to reach the people who are cooking brisket from a local farmer while drinking a craft brew, and want to share about the experience on social media.

“Canadians are notoriously passionate about being outdoors,” she continues. “No one builds an Outdoor Room to sit in it alone. People who are successful at it are selling to that desire to cook great food and connect with family and friends to have experiences and make memories.”

Although Percival hasn’t had to contend with the natural-gas legislation challenging other areas of the country, she says, “It’s not uncommon for big cities like Montréal and Toronto to follow suit, so we need to stay aware of that.”

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37%

of Canadian digital buyers shopped from domestic sites only.

She says the biggest challenge hearth and barbecue dealers face today is staffing. “It’s hard to find skilled workers, and dealers often don’t have enough staff with the skills to train people. Dealers are stuck feeling like they can sell the equipment, but it’s hard to pull off a turnkey, one-stop, design-build type of sale.

It’s a huge problem. The industry could do more with training on the outdoor side.”

She says, due to the unfavorable dollar exchange rate, Canadian retailers have difficulty sending staff to HPBExpo to access training. “The challenge is how to get people who can’t travel to the show, engaged and trained?” she says. “We are considering gathering people who’ve had success in the Outdoor Room to offer hands-on training to our dealers. I’ve even considered developing a training program open to any dealer, because it would lift the whole business up.”

More on Cross-Border Shopping and Trade Issues According to “eMarketer Retail,” 90% of the Canadian population lives within 100 miles of the U.S. border, making crossborder shopping pilgrimages commonplace for many years. The trends newsletter reports that, now however, due to greater availability of comparable, domestically produced goods, and a decrease in value of the Canadian dollar relative to the U.S. dollar, cross-border shopping is not always a cost-savings endeavor.

The Internet has eliminated the need to physically cross the border to access goods. According to the 2018 “PayPal Cross-Border Consumer Research Study,” 37% of Canadian digital buyers shopped from domestic sites only, suggesting the majority of shoppers are digitally crossing the border to shop. The International Post Corporation’s 2018 “Cross-Border E-Commerce Shopper Survey,” shows 53% of Canadian digital buyers bought goods from the U.S. and 30% bought from China.

However, a study from the Canadian Internet Registration Authority found that the value of the purchase influenced the origin of the transaction site. For goods less than $100, Canadian online shoppers were more likely to purchase from a U.S. site, but when the order was greater than $500, digital buyers purchased from a Canadian site.

According to “eMarketer Retail,” the new United States-Mexico-Canada Agreement also is likely to impact crossborder e-commerce trade. The new agreement raises the duty-free threshold value of goods entering Canada from $20 to $150 CAD, and raises the tax-free threshold from $20 to $40 CAD. The

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OUTDOOR PRODUCTS

The Canadian Barbecue Business Retail Council of Canada predicts this will have a negative impact on domestic online retail sales in Canada, but says overall, “retailers in Canada dodged a bullet,” given the U.S. initially requested the threshold be raised to $800 USD. There also has been fallout from America’s trade conflicts this year. The U.S. Census Bureau reports imports of Canadian goods to the U.S. declined by $1.8 billion in the first half of 2019.

says. Crouch explains that numerous propane tanks. each residence will have a Crouch asks: “Could this budget capping the amount become a trend? Yes; although of permissible greenhouse gas we have not seen it anywhere emissions created by the home’s else (in Canada), so far.” systems and appliances. At While Vancouver has this point, he says the budget been at the forefront of the would accommodate a furnace, legislation in Canada, in a water heater, and choice of July, the city of Berkeley, either a gas fireplace or a gas John Crouch.

California also banned the cooking appliance. installation of natural-gas “So, if you wanted two gas lines in new construction as cooking appliances, such as a gas stove part of its efforts to reduce greenhouse inside, and a nice gas grill outside, you gas emissions, as well as for safety reasons would have to drop one of the other in case of an earthquake. A similar ban items, (such as) the fireplace, or go all in Menlo Park, California takes effect electric with your hot water, or put in in January 2020. According to the San a heat pump,” Crouch says. “Same goes Francisco Chronicle, 50 other California for hearth products. If you wanted a gas communities, including Los Angeles, fireplace inside, and another one outside, San Francisco, San Jose and Santa Rosa, you have to go all electric somewhere else. are reportedly considering some form of Due to the emissions ‘budget,’ if someone natural-gas ban.

“Due to the emissions ‘budget,’ if someone wanted an outdoor kitchen (fueled by natural gas) in their new house, they would either have to sacrifice gas in the indoor kitchen, or scrap the fireplace.”

— John Crouch

Oil and gas fracking rig in Alberta, Canada.

Potential Impact of Natural-Gas Regulations As an attempt to cut greenhouse gas emissions and reduce the use of fossil fuels, the city of Vancouver, British Columbia, has enacted pioneering legislation restricting the use of natural-gas in new construction.

While the Hearth, Patio & Barbecue Association (HPBA) has been primarily focused on the legislation’s impact on the hearth industry, John Crouch, director of Public Affairs for HPBA, cautions that there is the “potential for some nasty business” on the barbecue side, too.

“I think one key element of the Vancouver (legislation) is the greenhouse gas ‘budget’ for new, large homes,” he

54 | OCTOBER 2019 | www.hearthandhome.com

wanted an outdoor kitchen (fueled by natural-gas) in their new house, they would either have to sacrifice gas in the indoor kitchen, or, scrap the fireplace.”

Crouch and HPBA Canada president Laura Litchfield emphasize that these restrictions apply only to natural-gas lines in the context of new construction. “Only grills that are ‘plumbed’ or hooked up to the natural-gas line are included in the greenhouse gas emissions cap calculation,” says Litchfield. “Grills using propane are not included.”

Still, this is a potentially concerning issue for the barbecue industry in Canada and elsewhere. The fact that Outdoor Rooms often include multiple cooking appliances, as well as hearth elements and patio heaters, makes natural-gas an attractive and appealing alternative to lugging, monitoring and refilling

Forbes calls this a “national trend,” citing a new law in Maine that reduces natural-gas use in new buildings, and New Jersey’s proposed Energy Master Plan that eliminates natural-gas use in new buildings by 2030. Eight other states have established 100% electricity goals.

Crouch says while other cities contemplating legislation may not ban natural-gas lines in new construction outright, they could enact greenhouse gas “offset fees,” making it costlier to use gas. He says potential new legislation will also likely require that the house have a dedicated electric circuit run to every gas appliance in the house, making it ready to switch over to electricity someday.

“Right now, the only group of manufacturers interested in this issue are the hearth folks,” says Crouch. “I’m sure they would welcome some help from the serious outdoor kitchen companies, as well.”

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The Canadian Barbecue Business

KNOWN & RESPECTED Known for its commercial foodservice appliances, Crown Verity adds residential appliances to its lineup.

By Lisa Readie Mayer

Verity. The dictionary defines it as “truth” and “a fundamental principle, belief, or value, such as honor, integrity, quality, patriotism, love.”

W

hen the word verity is used in a company name – as it is in the case of Crown Verity, a manufacturer of premium outdoor cooking equipment – expectations are high regarding its products and business practices. The expectations – and the stakes – are even higher given the “Verity” in Crown Verity also happens to be the name of the company’s founder and CEO, William “Bill” Verity.

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Fortunately, the company lives up to its moniker on both fronts.

Bill Verity is from a long line of family entrepreneurs, the first of whom established W.H. Verity & Son in 1892 as a manufacturer of farm equipment and plows in Brantford, Ontario, Canada.

While the company evolved over the ensuing decades, changing names and adapting product offerings to everything from lighting fixtures and table lamps to fireplace assemblies and World War II aircraft parts, the family’s business connection has remained entrenched in the southern Ontario community for more than a century.

By 1951, Crown Electrical, as it was then known, had diversified into the business of distributing commercial restaurant appliances. In 1974, Bill Verity joined the company, working for his father, Jack. As he cut his teeth in the family business, Verity saw a gap in the market for commercial foodservice outdoor grills, and came up with a plan to fill it.

Verity launched his own company, Crown Verity, in 1991, designing, manufacturing, and selling state-of-theart, high-quality and high-performance barbecue grills for chefs, caterers, and other foodservice professionals. Verity continues an active role as CEO of the business, pursuing his passion as leader of the newproduct innovation and development team, but in 2014, he turned over the reins of dayto-day operations to Andy Incitti.

L to R: Bill Verity, founder and CEO, beside him is Andy Incitti, president of Crown Verity.

“I met Bill in 2013 and started as president of Crown Verity in 2014,” says Incitti. “Since then, Bill and I have worked side by side to grow the business. My body type will tell you I’ve always been an eater and always loved to grill and cook outdoors, so this is something I love.”

Initially, the pair concentrated on growing sales within the foodservice lane.

“Our foodservice customer is someone who needs a mobile, high-powered outdoor grill to feed a large number of customers at once,” says Incitti. “We sell to country clubs, golf courses, rooftops, restaurants, resorts, caterers, stadiums, and sports franchises that set up an outdoor tailgating experience, and other businesses that need to be able to turn out a high volume of food to generate revenue in return.”

Crown Verity’s commercial grill line-up includes gas- and charcoal-fueled models that range in size from 30 to 72 inches and are available as built-ins, on mobile wheels, carts, or outfitted for towing on a mobile hitch. In addition to grills, the company makes commercial griddle appliances, fryers, hot dog steamers, patio heaters, built-in outdoor kitchen components, and other outdoor cooking accessories.

As Crown Verity cemented its place in the foodservice sector, an interesting trend began to emerge. “We noticed that 20% of our sales were to consumers who were putting the grills into their backyards,” says Incitti. “These homeowners valued highquality, domestically-made product, and were buying based on the recommendations of the chef at their favorite local restaurant or at their country club. They were figuring, if the chef trusts our grill, it must be good, and it must perform at a high level.”

From Commercial Kitchens to Residential To serve this growing business segment, Crown Verity introduced a residential grill line called the Estate Series in 2017.

Produced in Brantford, Ontario, the grills are offered in 24- to 48-inch sizes, on cart bases or as built-ins for outdoor kitchen islands. They are all made of 304 stainless steel, backed by lifetime warranties, and range in price from $3,000 to $10,000.

“Our 30 years of working in the commercial market has informed the design of our residential products,” says Incitti.

“Everything we learned from chefs about the need for power, performance, high and low heat control, and quality materials, we bring to the residential market. We’re building on our reputation.”

In fact, according to Incitti, before launching the Estate Series, the company worked with chefs to gather ideas on what they would want in a home grill, and to get feedback on prototype designs and features. Out of these sessions emerged some of the line’s key design elements, including a grill head that is taller and deeper than a typical grill.

management system includes a deep tray to hold water and catch grease. “Fat drippings fall into the water and are extinguished,” says Incitti. “This allows moisture and grease to evaporate and eliminates flare ups.

You can also power-wash our grills without hurting them. In fact, we encourage it because a clean grill performs better.”

Before the company introduced its line of grilling accessories, including griddles, smoker boxes, charcoal trays, vegetable and fish trays, rotisseries, and heavy-duty tools, all were tried and tested by chefs. “With these cooking accessories

The 36-inch Island Estate Series Elite.

“A chef wants room to cook multiple things at once,” Incitti explains. “Having different zones allows you to sear a steak on one side and cook dessert indirectly on the other side. A taller profile means you can stand up a turkey to cook it, or cook large items on the rotisserie and still have space on the grilling grid for sides. Our focus groups with chefs led to designing our warming rack with four adjustable height levels for greater cooking flexibility and versatility.”

Easy maintenance and cleaning – of paramount importance to foodservice professionals – is a design feature of the residential line, as well. The grills’ grease

you can do different techniques on the same grill instead of buying multiple units,” says Incitti.

He says Crown Verity continues to maintain relationships with chefs such as Jason Parsons, the executive chef of the Peller Estates winery on the Niagara Peninsula and frequent guest on Canadian television shows, who act as influencers for the company and serve on its R&D team. In fact, according to Incitti, Parsons was instrumental in developing the line of mobile and tabletop pizza ovens launched this year for the commercial market. Pizza ovens will be added to the residential line in January of 2020.

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| 57

The Canadian Barbecue Business Also coming to the residential lineup next year will be a modular outdoor kitchen concept called the Infinite Series.

Components include numerous door and drawer modules, a sink cabinet, sideburner, refrigerator, corner pieces, and trash pullouts to customize the kitchen in unlimited configurations. Crown Verity will support the line with design assistance offered to dealers and end users.

Its natural gas and propane patio heaters, made to commercial-quality standards to last longer and perform better, complete the current outdoor living offerings.

Company Growth Though Incitti prefers to keep the company’s annual sales private, he says both the residential and commercial divisions have grown by double-digits every year for the past five years. The company goes to market direct to dealers on its residential line, working with hearth, patio, and barbecue retailers, appliance retailers, and other specialty channels. With the exception of parts and small accessory products, it does not sell online, but exclusively through dealer partners, unless there is no dealer in that market.

“Besides selling to consumer customers, our dealers also have access to our commercial product to provide a solution to golf clubs, charitable groups, churches, retirement communities, and many other local establishments and organizations that host large-scale cookouts or want to create outdoor living experiences for members,” says Incitti. “There is a wealth of business in this area.”

Though the company, with about 100 employees including reps, still has deep roots in Canada, its sales are strongest in the U.S., split 70% in the U.S. market and 30% in Canada. “That trend was the driving decision behind us opening a new facility in Bowling Green, Kentucky,” Incitti explains. “We had to decide whether to expand our Brantford operation or open another location in the U.S. With growth heavier in the U.S., we wanted to be closer to our customers to better service them with faster turnarounds.”

Opened in February 2019, the new Bowling Green location currently

58 | OCTOBER 2019 | www.hearthandhome.com

handles distribution to U.S. customers, but will begin manufacturing product in 2020. The company will continue to manufacture and supply Canadian customers out of its Brantford facility.

In addition, Crown Verity recently opened a showroom in Brantford to showcase its product and give prospective dealers, and commercial and consumer customers the opportunity to test-drive grills and appliances prior to buying. Those who can’t travel to the location can have a live-feed video conference with a salesperson or chef to learn about the grill and see the features in action. “People can even have a Skype session with our service guy to troubleshoot any issue,” says Incitti. “It’s been a great support tool for our customers.”

speak about and show our brand to end users has taken us a long way. It’s been very successful.”

Another facet of the marketing program focuses on building awareness and partnerships through participation at trade shows that reach targeted industries, such as hearth, patio, and barbecue retailers, landscapers, and appliance dealers.

Crown Verity reaches consumers directly with its messages through social media, search optimization and lead generation, Incitti says. It has a growing following on Instagram, Facebook, and other platforms thanks to a heavy emphasis on food and recipe content with delectable-looking photos. Posts also

Crown Verity’s Estate Series Elite 24-inch mobile model.

The program is part of the company’s expanded marketing program that includes what Incitti calls a “trifold approach” to building awareness of the brand and growing business. He says supporting dealer partners through the showroom, as well as merchandising efforts, store demos, parties, local home-shows, and other events, is a key component of the marketing mix.

“We’ll bring one of our chefs to a dealer for a demo event or to conduct an outdoor cooking class,” he says. “We are very lucky with strong dealer partners, and what we find is, every opportunity to

frequently include educational content, grilling tips and tricks, and images that promote the outdoor-entertaining lifestyle. In addition, the company has created an arsenal of instructional videos featuring a variety of chefs.

“When someone is trying to create a memorable outdoor experience, the common denominator is always food,” says Incitti. “We support people’s passion for cooking and passion for eating.

Cooking on the grill, sitting together in the Outdoor Room – these are the things that bring families together.”

That’s the truth.

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The Canadian Barbecue Business

CREATING KITCHENS, If Ryan Bloom comes calling, hear him out; he appears to have a way to increase your bottom line.

60 | OCTOBER 2019 | www.hearthandhome.com

By Lisa Readie Mayer

R

yan Bloom doesn’t particularly like the term “outdoor kitchen.”

The co-founder and president of Urban Bonfire, a company that designs and manufactures modular cabinetry systems for outdoor use, prefers to call it “a kitchen outdoors.” The distinction, he says, elevates an outdoor kitchen to its rightful status on par with an indoor kitchen.

“Our mission is to reverse the terms,” Bloom says. “When individuals are buying or renovating a home, they spend considerable

time on every detail of the indoor kitchen design, yet the outdoor kitchen is usually an afterthought. Why has a stucco or stone island – which is essentially a block of unusable space without much storage or functionality – become the accepted norm outside? Our product is not ‘an outdoor kitchen,’ it’s a kitchen for cooking and entertaining, that happens to be outside.”

Others, it seems, are coming around to his way of thinking. Last March, the International Furnishings & Design Association awarded Urban Bonfire the “Best in Show: Kitchens” prize at the

Urban Bonfire custom outdoor kitchen and planter shown in Chantilly with stainless-steel handles. Features Aspire by Hestan 36-inch Grill, Dual Sideburner and Refrigerator. Dekton countertop in Sirius.

OUTDOORS 2019 Architectural Digest show in New York City. “We were considered in the same category as the indoor kitchen products and are honored to have won,” says Bloom. “Our greatest success is when we are compared to indoor cabinets.”

It’s not a stretch. Urban Bonfire’s modular cabinets look and function like indoor cabinetry, and come in a variety of open and closed shelving units, drawer units, trash pull-outs, and other storage options. The line’s innovative backsplash system mirrors the look of an indoorkitchen backsplash, and provides a way

to incorporate herb planters, while also serving as a protective barrier when placed against a house or fence.

The components are designed to stand up to the elements. Made from durable, hand-welded, powder-coated, marine-grade aluminum, with 304 stainless-steel drawer slides, door hinges, and other interior hardware, they come with a 10-year warranty. The cabinetry also features integrated, self-leveling toe kicks that sit flat on irregular surfaces, and are compatible with all major brands of grills and outdoor appliances.

TOP to BOTTOM: Ryan Bloom, co-founder and president; Stefan Marchant, co-founder and head of Design; Ashley Smith, senior Account manager.

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The Canadian Barbecue Business

What is unique about the line is how (the co-founders) have streamlined and simplified the design and installation process while still providing opportunities for people to customize their kitchens.

Urban Bonfire custom outdoor bar and entertainment center, and countertop planters shown in Onyx with white bronze handles. Features Hestan Beer Tapper, Glass Door Refrigerator, Ice Maker, and Refreshment Center. Dekton countertop in Zenith.

Perhaps what is unique about the line, however, is how Bloom and Stefan Marchant, Urban Bonfire’s co-founder and head of Design, have streamlined and simplified the design and installation process, while still providing opportunities for people to customize their kitchens.

The process starts with the dealer gathering information about how the customer wants to cook and entertain outdoors. After determining which appliances to include, the customer then selects the configuration of their outdoor kitchen from several popular layouts, or he/she can work with the dealer to create a custom layout. Customers can choose from four exterior finishes, doorhandle styles, and colors (custom upgrades also are available for an additional cost), and can even order a solid-surface countertop in a number of colors and designs.

62 | OCTOBER 2019 | www.hearthandhome.com

Selections are forwarded to Urban Bonfire designers who create a 3-D rendering of the kitchen. Upon approval, the entire customized kitchen is fabricated and delivered in four to six weeks, and can be assembled and installed in a matter of hours.

Necessity Is the Mother of Invention Bloom and Marchant created their modular cabinetry system to fill a need they encountered as owners of a barbecue retail store, also called Urban Bonfire, in Montréal. After realizing most of their customers wanted built-in outdoor kitchens, the partners sought a practical and easily implementable solution for getting into the game. With minimal experience in the construction trades, building custom masonry islands was not in the retailers’ wheelhouse, and they

wanted to avoid the hassle of ping-ponging between subs. They felt existing brands of prefab islands or modular outdoor kitchens offered limited design and installation support for the dealer, and too few customization opportunities for the consumer.

So, Marchant, a professional engineer, began designing outdoor kitchens for customers, having the powder-coated aluminum cabinetry fabricated locally.

The kitchens’ modern design and practical functionality appealed to the store’s clients, and its turnkey assembly was a boon to the small, short-staffed retailer. Before long, the store’s outdoor kitchen business had outpaced its traditional retail sales, 85% to 15%.

Figuring other independent retailers might have a similar need, Bloom and Marchant closed the retail side of their business and launched Urban Bonfire Modular Outdoor Kitchens nationally at the 2018 HPBExpo. Their former store is now a showroom and meeting space where the company’s dealers come to visit, learn about the product, and train.

Changing the Paradigm Historically, according to Bloom, it has been easier for small, independent retailers to sell only the grills and appliances for outdoor kitchens, and leave the project’s design and execution to others. “Previously, you needed a designer, a contractor, a mason, and other subs to create an outdoor kitchen,” says Bloom. “The entire process is lengthy and subject to the subs’ schedules and weather delays, which limits the number of projects retailers can work on in a year. We understand the challenges independent retailers face because we experienced them as retailers ourselves.

With this line, we have made a very fragmented category simple and turnkey.

“We tell specialty retailers that our system is not a ‘project,’ it is a ‘product,’” he says.

“You have our professional design team working with you to create the design. You don’t need to coordinate multiple subs to build the frame and finish it with stone.

Retailers can handle it all themselves and complete the full installation in one day or less. It’s simple.”

Bloom says, in order to grow and thrive, specialty barbecue retailers must find a way to take advantage of the outdoor-kitchen

opportunity. “Think about the economics. You have to sell 20 grills to equal one outdoor kitchen sale. And, with those 20 individual grill sales, comes 20 deliveries, and 20 times the service calls and potential warranty issues,” he explains. “Most retailers who offer premium grills today will tell you that 10% of sales are on carts and 90% are built-ins. Those grills are being built into something. When you sell only the grill, you hand over the sale of the outdoor kitchen to someone else who is reaping the benefits.

“In exactly the same linear footprint you would use to display cart grills, you can maximize your real estate and double your economic return,” he continues. “Even if a dealer has a 20% conversion rate, there could be a dramatic difference to the bottom line, in exactly the same floor space.”

Bloom says the company’s average outdoor kitchen retail sale is $25,000, including the cabinetry, appliances, and countertop.

The reasoning makes sense to a growing number of hearth, patio, and barbecue retailers who have already signed on as Urban Bonfire dealers, including Luxapatio in Miami; Jack Wills Outdoor Living in Tulsa, Oklahoma, and Springdale, Arkansas; and Kerrisdale Lumber in Vancouver, Canada.

The company has lined up heavy hitters in the appliance channel, as well, including PIRCH and Snyder Diamond in Southern California; Yale Appliance & Lighting near Boston; Abt Appliance & Electronics in Chicago; and Albano Appliance in New York. Bloom says the line appeals to appliance dealers because “they can ask consumers about their outdoor-cooking needs at the same time they’re talking about their indoor kitchen.”

Jim Murdock, director of Merchandising – Appliances and Outdoor Products at PIRCH, says allowing clients to choose from a set of options regarding colors, designs, and finishes creates the opportunity for a “flexible, yet simple sale,” and the quick turnaround and easy assembly for installation teams allows projects to be “completed in weeks, not months.”

According to Murdock, since the line was added to the retailer’s four showrooms, “early results have been very encouraging.

Urban Bonfire products will be an important addition to our arsenal as we tool up to make luxury outdoor kitchens a larger part of our overall business.”

By the end of the year, Urban Bonfire expects to have 75 dealers throughout the U.S. and Canada. “We thought the coasts would be the biggest areas for us, but we’ve also had success in the Midwest and Canada,” Bloom says. “We have been incredibly mindful about choosing our dealer partners.

We would rather have fewer dealers that are all selling well.”

And sell they are. Urban Bonfire’s 2019 sales are set to double over last year, according to Bloom, and the company is expanding staff.

The cabinetry is manufactured in Montréal and shipped from the company’s warehouse facility in Champlain, New York. Urban Bonfire sells direct to dealers in most regions, but uses reps on the West Coast. The product is not sold online; consumers may purchase only through dealers, unless there is no retailer in their area. “This is a significant difference for our brand and many dealers are pleased with that policy,” Bloom says.

to UV rays, scratches, stains, and thermal shock, that is well-suited for outdoor use.

“These are symbiotic relationships; you can’t have one without the other,” says Bloom.

In May, the company cut the ribbon on the Urban Bonfire Outdoor Kitchen Design Boutique at Yale Appliance & Lighting in Boston, a “store-within-a-store” concept that showcases Urban Bonfire modular cabinetry with Hestan grills and appliances, and a Dekton countertop.

“Both the retailer and consumer benefit from a ‘one-stop-shopping concept,’” says Patty Dominguez, vice president of Architectural and Design Sales for Cosentino North America. “Retailers are able to tell a more complete design story with these vignettes, and the consumer can visualize in one convenient place how products will look together once they’re installed, instead of bringing samples to different locations.”

According to Dominguez, the countertop has traditionally been challenging for outdoor kitchen dealers, and the partnership

The cabinetry is manufactured in Montréal and shipped from the company’s warehouse facility in Champlain, New York.

The company has developed strategic partnerships with a number of premium grill manufacturers, including Hestan, Caliber, Lynx, Twin Eagles, Big Green Egg, and Memphis Wood Fire Grills, as well as with Cosentino, the makers of Dekton countertop, an ultra-compact surface resistant

with Urban Bonfire helps streamline the process. “Over 95% of Urban Bonfire kitchens are also specified with Dekton countertops,” she says, noting, the Aura 15, a marble look with dramatic veining, and the Trilium, Orix, Nilium, and Radium finishes, reminiscent of aging metals, are the most popular colors.

www.hearthandhome.com | OCTOBER 2019 | 63

The Canadian Barbecue Business Opening More Doors Bloom says the line is catching the attention of designers as well. “Historically, the design community has not been involved in outdoor projects, but we are seeing a huge spike in designers creating outdoor kitchens,” he says. “Designers and designdriven consumers haven’t always seen what they’re looking for at hearth shops and other places that promote traditional rock looks. We are positioned as furniture and cabinetry, and they are responding to the modern aesthetics.”

Bloom explains that while the cost of a premium, cabinetry-based outdoor kitchen is comparable to the total cost of a frameand-finish kitchen, the former adds value and makes economic sense to the consumer.

“Our biggest competition is that people don’t know that modular outdoor kitchens even exist.”

“Every square inch is functional – there are no hollow cavities,” he says. “This is less critical in suburban backyards, but if you have a condo balcony, or a city rooftop, or a small yard in Santa Monica, it’s important. Also, unlike a rock island, a cabinetry system can be reconfigured, or move with you if you move.”

Although there is a growing roster of modular outdoor kitchen competitors, including Danver, Brown Jordan Outdoor Kitchens, NatureKast Weatherproof Cabinetry, Kalamazoo Outdoor Gourmet, Napoleon’s Oasis Outdoor Kitchens, and others, Bloom is not concerned. “I love the competition,” he says. “It increases options for consumers, raises awareness of the category, and drives growth for everyone. Our biggest competition is that people don’t know that modular outdoor kitchens even exist.

64 | OCTOBER 2019 | www.hearthandhome.com

In May, the company cut the ribbon on the Urban Bonfire Outdoor Kitchen Design Boutique at Yale Appliance & Lighting in Boston, a “store-within-a-store” concept.

Here, Urban Bonfire modular cabinetry is paired with Hestan grills and Dekton countertop.

“One year ago, we never could have imagined we would be where we are now,” he says. “Our company and products are resonating with dealers and we are growing.

Our experience of being in their shoes, and knowing their challenges first-hand, helps us relate in a way most manufacturers can’t.”

The company has “incredible, cool,

new products” in the works for 2020, some of which will incorporate technology, according to Bloom.

“Enthusiastic and passionate independent retailers can survive and thrive,” he says. “We hope to provide products and tools that help them succeed in the business of kitchens outdoors.”

PHOTOS: ©2019 GORDON BERNSTEIN. GSBPHOTO.COM.

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The Canadian Patio Business

Not the Greatest Patio furniture sales were impacted by the weather (surprise!), a weak loonie, and the U.S. president’s tariffs.

By Tom Lassiter

S

ome casual furniture seasons are memorable because business was so, so good. Other seasons, when sales dip like the mercury in January, casual merchants would rather forget it ever happened.

Canada’s 2019 casual furniture season appears to be neither.

Call it so-so. Call it flat. For most specialty retailers, call it marginally different from 2018, perhaps up a hair or maybe down a tad.

Call it just another year in the uncertain world of retail.

Mark Van Zoost, president of Holland Home Leisure in New Minas, Nova Scotia, spoke for many when he summed up the 2019 season this way: “I would say it was an off season, which started off with a slow spring then never caught up.”

Winter lingered far too long this year in much of Canada, squelching those crucial, early-season patio furniture sales. The cold and wet just couldn’t seem to say good-bye.

“We struggled to get going this year, for sure. It took a long time to get warm,” said Phil Squarie, Jr., owner of Luxe Furniture in Winnipeg, Manitoba. “When it’s cold, people don’t go outside and start cleaning off their decks and patios.”

When summer finally did arrive in Winnipeg, the tables turned. “We had a really good, hot, and dry summer,” Squarie said. “Good for patio furniture.”

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The Canadian Patio Business Gross sales will probably tally as down a bit from 2018, but Luxe Furniture will fare well anyway. Squarie said he expects net profits to be up, thanks to “doing a better job of pricing.”

Bad weather sometimes seemed to be eyeing the calendar to achieve the most impact, said Sean Batt, whose family owns Crystalview Pool, Spa & Patio in North Vancouver, British Columbia. “A lot of bad weather has been on the weekends,” he said, “when people are shopping for this stuff.”

Casual furniture sales at Crystalview “are definitely down from last year,” Batt said, which smarts, because “we had such an excellent year last year.”

Weather was “a big deal” said Ian Beck, manager of Fresh Home & Garden in Toronto, Ontario. “We had a terrible spring. In May and June the weather was not really great, either.”

A little to the east, in Waterloo, Ontario, business fared better at Sherri’s Living Large. “It was a real slow start, a very wet spring,” said Peter Marshall, who owns the shop with his wife, Sherri. Yet once the season did finally arrive, he said, “It’s been good. We’re up over last year. It’s been a hot summer and (in September) people are still thinking patio.”

“Special projects more than made up for soft retail furniture sales.”

— Terry Gelowitz

A good June and July were welcome after a slow launch to the season in Delta, British Columbia, said Allen Cameron, owner of Sun Gallery Patio Furniture. Sales in August slowed down again; Cameron attributes that to so many people taking a lengthy holiday (U.S. readers, that means vacation) and making the most of summer before school reopened for the fall.

Rolling into September, sales of patio furniture continued. “We’ve got people buying now, because we’ve got great weather,” Cameron said, “and people are taking advantage of the end-of-season sale.” Even so, he said, “We’re down a little bit from last year.”

Brougham Interiors, a full-line store in Vancouver, British Columbia, has a 5,000 sq. ft. casual furniture showroom. The store concentrates on upscale outdoor lines such as Gloster, DEDON, Brown Jordan,

Hudson dining chairs with Hyannis dining table from Kingsley Bate.

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Kingsley Bate, Cane-line, and Janus et Cie. Casual sales are up a bit this year, said owner Mark Panther.

“Each trading area has its own dynamics,” he said. “For the most part, things are going well.” Good weather early in the season helped.

The year has been surprisingly good for Gould Billiard & Patio in Regina, Saskatchewan, considering that “the economy in our province is kind of in the stinker right now.” That’s the appraisal of Terry Gelowitz, one of the owners who manages the casual furniture side of the business.

The Saskatchewan economy, Gelowitz said, is heavily dependent on natural resources. Prices for “all the things we sell – oil, potash, uranium – are a little below average,” he said. New-home construction is “down immensely.” The impact for

his store is that walk-in traffic and patio furniture sales are down, though he didn’t have final numbers at press time.

Special projects, Gelowitz said, more than made up for soft retail furniture sales. Gould Billiard & Patio landed a couple of large condominium jobs, supplying casual furniture for the common areas. “These were high-end, retirement condos,” he said, with budgets to accommodate the high-end casual furniture that his store features.

Gelowitz said Gould Billiard & Patio landed the projects because, “We’re in touch with designers all the time. We know what jobs are available for our types of furniture.”

In the neighboring province of Alberta, Backyard Leisure enjoyed a bounce in casual furniture sales that pushed its numbers ahead of 2018. But Lindsay Foreman, Patio Sales manager, said he expected the season to fall short of 2017.

“It’s all about the weather,” he said. “We started out pretty nice this spring, with some great weather. Temperatures cooled off a bit during the early summer months, and so did sales, before picking up again.”

Backyard Leisure is in Lethbridge, in southern Alberta, not far from the U.S. border and Glacier National Park.

Itemized Sales Fire pit tables continued to be popular with consumers, Foreman said. “We were a little surprised at how many people were interested,” he noted. Backyard Leisure carries OW Lee fire pits.

The store introduced resin furniture

by C.R. Plastic Products this year, which satisfied two growing concerns expressed by shoppers: Use of recycled materials and interest in where products are made. C.R. Plastic Products, a Canadian company, makes its furniture from postconsumer and industrial waste plastics, such as milk jugs.

Sales of all-weather wicker furniture (Ebel) were strong, he said, as were sales of Mallin sling and swivel dining sets with room for lots of place settings. “A lot of our best customers are farmers who have lots of kids and grandkids,” Foreman said.

Dining sets also sold well at Gould Billiard & Patio, perhaps because shoppers could pay less for a nice dining set than a full chat group. In September’s closeout

sale, he said, a dining set at 50% off was $3,600. The shop’s major brands are Homecrest and Ebel.

“We had a really good year with Home­ crest,” he said, noting that the Minnesota-made products held a tarifffree advantage.

CabanaCoast is the main brand at Sun Gallery Patio Furniture. The brand’s new Ibiza Collection, which features moistureshedding Rain fabric by Sunbrella, garnered attention. “We do a lot of cushion,” Cameron said.

Also popular with shoppers this season: Italian-made FIM umbrellas and Flexy shade structures.

Faux teak resin furniture, and aluminum furniture with teak accents (faux or natural) performed well for Luxe Furniture. A 2019 introduction by Ratana “had that look, and we had really good success,” Squarie said.

“We’re ordering more.”

Deep seating from C.R. Plastic Products gained in popularity, while interest in top-quality resin Adirondack chairs declined. Squarie attributed that to less expensive, widely available products of lower quality.

Shopper tastes in Toronto are shifting away from woven resin casual furniture to more contemporary looks, said Beck of Fresh Home & Garden.

Zuni Table with Durawood Top by Ratana.

Shade products are the main line at Sunguard Awnings and Patio Furniture in Mississauga, Ontario. Patio sales were off a bit this season, said Michel Bernard, an owner. The company carries furniture by Enclover, Cabana­Coast, and Telescope.

“Even wet weather doesn’t stop people from wanting shade products,” Bernard said. “If I were not in the awning business, I’d definitely be crying the blues.”

Metal-framed outdoor furniture with clean, modern looks generated more interest this season at Crystalview Pool & Spa. The shop’s brands include Kingsley Bate, RATANA, Kannoa, Telescope, Seaside Casual, and OW Lee.

To his dismay, “the gray tones” remain dominant. He describes them as “urban colors, drab garden.”

Dollars and Sense In addition to the weather, Canada’s casual furniture retailers this year were saddled with the continuing weak performance of the Canadian dollar. The disparity in the exchange rate added at least another 25% to the cost of goods imported from the United States. If those products originated in China, U.S. tariffs piled on even more additional costs.

The ongoing tariff spat between the U.S. and China forced Peter Marshall’s

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The Canadian Patio Business hand, he said. “Next year we will not be dealing with any U.S. companies” that import China-made products into the U.S. before shipping them to Canada, he said. “It’s getting out of control and out of reach. Until things smooth out, we’re pretty much sticking with Canadian companies.”

Exceptions may be made, Marshall said, for container purchases that can be directly imported to Canada without passing through U.S. ports and customs.

The move, Marshall said, is one way to put constraints on costs. “You’ve got to look at the bottom line,” he said. At some point, customers will balk “and say it’s out of their price range.”

In Toronto, Beck has noted a general uneasiness, even among the most affluent demographics. “They are not as spendy as they have been in years past,” he said.

Luxe Furniture’s Squarie plans to buy containers from China to avoid paying tariffs, or deal with companies such as OW Lee that manufacture their products in the United States. Such moves are necessary to hold down pricing fluctuations and maintain margins. Cost increases in 2018 were “a big shock,”

“Any sort of uncertainty can dampen retail sales.

Elections are scheduled for October, which typically will slow things down.”

— Sean Batt

Squarie said. “We sort of ate too much of it, and it hurt us on the bottom line.”

Luckily, he said, Manitoba’s economy is diversified and fairly stable compared to some other provinces. “We don’t seem to have the ebbs and flows,” he said, “but we’re also a lower-income province.”

A second year of exchange rate swings challenged margins at Crystalview Pool & Spa. To control costs, the merchant stocked up on Sundance and Jacuzzi spas (both made in the United States) and limited special orders. Sean Batt observed that more shoppers are taking advantage of financing “to finish off purchases.”

Any sort of uncertainty can dampen retail sales. Elections are scheduled for October, he noted, which typically “will slow things

down. People are a little nervous.”

Tariffs haven’t seemed to have much of an affect at Vancouver’s Brougham Interiors “and the brands that we carry,” Panther said. “Canadians have been dealing with them for a long time.

They’re part of our world.”

Yet Canadians don’t live in a bubble.

Shoppers are in the habit of going online and checking U.S. prices for goods they are interested in, Gelowitz said.

“It causes a huge amount of confusion and doubt in the customers’ minds when they have to add 35% to it, or more,” he said. “You’d be amazed how many people don’t understand that the U.S. dollar and the Canadian dollar aren’t the same thing.”

Tofino Deep Seating Collection

by C.R. Plastic Products.

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The Canadian Patio Business

A FORMIDABLE TEAM CabanaCoast has visionary owners, quick-ship on everything, and a concentration on both specialty and commercial business.

By Tom Lassiter

J

Lindsay Liepold.

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ust about every casual furniture manufacturer has a quick-ship program. So does CabanaCoast.

But its quick-ship program offers

a major difference.

Instead of covering a limited number of products, with a restricted list of frame and fabric choices, CabanaCoast’s quickship program covers everything. Period.

“Our goal is to ship everything in two to three weeks,” says Lindsay Liepold, director of U.S. Sales. “Our focus is heavy inventory and on having very few backorders.”

CabanaCoast’s quick-ship program means that customers may choose from some 3,200 SKUs and more than 200 fabrics by Sunbrella, Tempotest, and Serge Ferrari. Customers can expect their custom-made cushions to ship in three weeks or less from the company’s headquarters in Mississauga, Ontario.

“We call ourselves a special-order manufacturer,” says Liepold. “That’s where our niche is.”

The Breezeway Collection.

CabanaCoast’s version of a container program keeps its warehouse stocked with a steady supply of products arriving from partner factories in China. Casual furniture retailers, designers, and commercial clients simply order what they need, when they need it. Whether it’s January or June or October, CabanaCoast stands ready to deliver on its quick-ship promise.

The company earned its way into some specialty merchant showrooms, Liepold says, because it could deliver product while the competition’s containers were still on the water.

Liepold says CabanaCoast is the largest customer in Canada for Glen Raven’s Sunbrella brand of performance fabrics, which are “stocked in heavy inventory.

That’s how we make our quick-ship program happen.”

Does CabanaCoast achieve 100% satisfaction toward its stated delivery goal?

“No,” Liepold says. “But neither does FedEx.” She can say that because she once worked in sales and management for the company that pioneered the overnight delivery business. But like FedEx, CabanaCoast remains focused on its goal of complete customer satisfaction.

CabanaCoast employs no secret formula, she says. Its recipe is simple.

“At CabanaCoast, there are no slackers,” she says. “We bust our butts to get the product out the door. We’re a hardworking team that works very well together to make that happen.”

She gives credit to the employees who staff the company’s in-house cushion factory. “None of our soft goods – cushions, pillows, umbrella canopies – are pre-made,” she says. “Designers love us because our fabric people are so capable. They’re pretty much fabric artists.”

Leading by Example David Wen and Catherine Peng founded the company now known as Cabana­Coast in 2000. The husband-and-wife entrepreneurs had emigrated from China to Canada as part of a program that requires participants to launch a business and hire at least one employee within two years.

Wen and Peng, who had a background in office furniture sales, started an import business serving that market.

The couple’s business plan was working well when an unexpected order came in. Could the company supply 200 bases for market umbrellas? That’s somewhat outside the realm of office furniture, but Wen checked with his Chinese suppliers and verified that the order could be filled.

Soon another order arrived for outdoor products.

“They just discovered they have a passion for it,” says Liepold. Wen remains the company’s sole designer, with input from his wife and other members of the management team.

Today, Wen is the creative force at CabanaCoast. The company moved into a new facility in late 2017, putting all of its operations under one roof.

Wen worked closely with the building’s

The Studio Collection.

As Liepold relates the story, Wen investigated the Canadian market for garden furniture and identified an opportunity. He discovered lots of Chinamade outdoor furniture available for import to Canada. He and Peng revised their plans and concentrated on building a casual furniture import business.

The first casual products they imported were cast-aluminum items, shipped knockdown for assembly upon arrival. Almost immediately, Wen saw ways to make the furniture more aesthetically pleasing.

These were simple design alterations at first, Liepold says, such as moving a screw out of sight. He and Peng eventually started requesting more substantial changes and then began sending complete product designs to be prototyped and manufactured in China.

architectural firm, Liepold says, suggesting a number of tweaks to the design. “He made it better,” she says.

Wen’s creative leanings seem unlimited. In addition to designing CabanaCoast’s products, he photographs them for the company’s website and catalog.

In a written response to questions, he describes himself as “a person who has always noticed and paid attention to details.

I spend a lot of time thinking about what will look beautiful in design and will be comfortable, because our furniture is made to be used and enjoyed, and not to sit as an art piece to just look at.”

Peng, Liepold says, is the operations wizard who makes everything come together behind the scenes. Peng also oversees the company’s sales in Canada.

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The Canadian Patio Business The company began selling into the U.S. market about seven years ago.

“They both have a vision,” Liepold says. “They are the hardest working people in this company.”

Going forward, the founders express their goals in simple terms. “I don’t know where we will be as a company in the future, but I know that we will be the best that we can be,” Peng writes. Her husband writes, “I really want to continue to design and produce nice products that people can enjoy, and to always remain true to our tagline – ‘A beautiful life.’”

Ramping Up Sales CabanaCoast’s fiscal year ends July 31.

While sales in the year just concluded were up in Canada, Liepold says, U.S. sales were down slightly. Liepold speculates that the dip (just a percentage point or two) may have been caused by retailer uncertainty over tariffs in the U.S.-China trade war.

The uncertainty appears to have delayed rather than cancelled orders, she says, especially with commercial clients.

“I see the order funnel. The orders are there,” she says. “They just didn’t fall into this fiscal year.”

Even though CabanaCoast is a Canadian company, U.S. tariffs apply to most of its products because they originate in China. For the moment, the company has elected to absorb most of the tariffs, Liepold says, and pass on as little as possible to its U.S. customers.

CabanaCoast beefed up its team of U.S. sales representatives over the past year and now has representation (and dealers) throughout almost all of the Lower 48 states. At press time, Utah was the only outlier.

The company’s dealer network now is stronger than ever, Liepold says. “When I came on board four and a half years ago, there weren’t many expectations on our reps,” she says.

Liepold, who once was responsible for servicing hundred-million-dollar accounts for Ingram Micro, brought structure to the U.S. sales team and raised expectations.

“Every time I’ve made a change,” she says, “it’s been for the better.”

The company has about 25 sales reps covering the United States, with about half

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servicing furniture retailers (specialty stores and full-line furniture dealers) and the remainder servicing the contract market.

CabanaCoast makes no distinction in its product line; retailers and contract customers purchase from the same catalog. Some products, however, are not warranted for commercial use. An example, Lindsay says, would be motion chairs. The swivel mechanisms, purchased from another supplier, are not designed for commercial applications.

while vacationing in Aruba. Returning home to the United States, she was determined to buy some. She researched the brand and found a nearby dealer to place an order.

It turned out to be that dealer’s first CabanaCoast sale, which rang up to be $25,000.

The dealer, of course, “was thrilled.”

Amazed, too, because it was his first sale based on a customer’s resort vacation experience.

The Trellis Collection.

CabanaCoast’s product lineup leans toward fashion forward, contemporary styling.

“Our product focus is on the commercial side of the business,” Liepold says. “That’s definitely where we have the biggest opportunity for growth.”

Resort Exposure Residential customers sometimes find their way to CabanaCoast after first experiencing the company’s products in a resort setting. That in itself isn’t unusual, as other outdoor furniture companies often attest.

But one CabanaCoast retailer’s experience stands out in Liepold’s mind. When they first met, he related how a customer had discovered CabanaCoast furniture

While the amount of the sale is noteworthy, the resort referral is not. “We hear that a lot from dealers,” she says.

CabanaCoast concentrates on building brand awareness through a variety of channels, Liepold says. “We could have the most beautiful product in the world, but if no one knows about it, we’re not going to sell anything.”

The company places its products in model homes, attends trade shows for the hospitality industry, such as BDNY, and keeps a manager year-round in its Merchandise Mart showroom to serve the design trade. The brand also gets exposure through some of CabanaCoast’s national accounts, that includes Marriott, Hard Rock Café, Whole Foods Markets, and Sandals Resorts.

“We’re getting into the better dealers, the better commercial accounts,” Liepold says.

Orders also are coming in from beyond North America and the Caribbean. “There is lots of interest from Europe, South America, and the Middle East,” Liepold says. “We recently filled an order for a resort in Egypt.”

Emphasis on Design CabanaCoast doesn’t concentrate on resin wicker or aluminum or stainlesssteel furniture. Rather, it follows a path dictated by design and staying on the leading edge of trends. All materials are fair game for CabanaCoast designs.

“We’re always going to be that company that’s fashion forward,” Liepold says. “We’re always going to embrace new designs, new materials.”

A new material introduced in 2017 is called SolTeak, a synthetic, faux teak product. SolTeak has the weight, look, and grain of natural teak, Liepold says, but as a polymer is maintenance free. SolTeak is available in a finish that looks like oiled teak as well as a weathered gray finish.

Owners David Wen and Catherine Peng.

The Belvedere Collection.

CabanaCoast “walks the line between transitional and contemporary.”

— Lindsay Liepold.

For 2020, CabanaCoast has fully embraced a new woven look, using thick, rope-like material wrapped and woven around frames to give seating products innovative textures with rich eye appeal.

The products first appeared at the Merchandise Mart at the July PreMarket.

“We got into ropes in a big way this year,” Liepold says. “We’ve also gone into mixed media in a big way.” SolTeak accents, for instance, are used in a variety of ways on other frame materials.

The desire to stay out front means being able to part company with a category when the market signals that its popularity is on the wane.

“We didn’t introduce one new wicker collection this year,” she says. “Wicker may have had its day. It’s so commoditized now. People are always looking for new and different. We’re trying to meet those needs.”

CabanaCoast “walks the line between transitional and contemporary,” Liepold says. Avant-garde, far out design is left to others. “We don’t want to sell one of something,” she explains. “We want to sell 20,000 of that item.”

The company also prides itself on listening. CabanaCoast recently introduced a new white finish for its Mesa Fire Pits specifically because dealers and sales representatives had requested a white option.

“So we listen to those things and we react,” Liepold says. “As a smaller company,

an entrepreneurial company, we’re more agile than some of those bigger companies.

I know that, because I’ve worked for those types of companies before.”

Building Credibility Liepold has worked for major international companies, and she’s also worked in the trenches for smaller companies.

When her children were young, she retreated from corporate life and found a part-time job with one of Canada’s leading casual furniture retailers, Sheridan Nurseries.

Liepold took a position in the patio and giftware section, where she was introduced to casual furniture retailing.

Her location was the No. 1 store in the group, which at the time had 14 stores.

Liepold met her best friend there, she says, and filled in as a buyer when the manager was on maternity leave.

Now, when a CabanaCoast customer mentions how tough it is to be a retailer, he or she gets a sympathetic ear from Liepold. She understands the lows as well as the highs of retailing.

As a top-notch salesperson, Liepold is quick to compliment another salesperson whom she respects. One such individual is Catherine Peng.

“Catherine’s the best salesperson in the world,” she says, “because she sold me on the company.”

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The Canadian Patio Business

THREE MONTHS OF WARMTH In Ottawa, Patio Comfort’s customers have learned to shop in very cold weather.

By Tom Lassiter

O

ttawa may be one of the world’s coldest capital cities, but that doesn’t stop citizens of the Canadian capital from thinking about, shopping for, and buying casual furniture during the depths of winter. That’s because they have to; average temperatures are above 70°F in only three months of the year (May, June, July).

“I’m surprised how many people come in through the winter months and are looking for outdoor furniture,” says

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Paul Anderson, general manager at Patio Comfort and its sister businesses, The Burning Log and Poolarama.

Shoppers may have come to this twostory retailer to check out hearth equipment or a hot tub, but no matter their original plans, they’re likely to sit for a moment in casual furniture that is strategically placed throughout the building. The shoppers may be deciding on a new fireplace, but they can’t help but be taken by the stylish, comfortable seating.

“Many times, they turn and say, ‘Oh, geez! We should get something like this!”’

Anderson says.

Casual furniture may not be a typical add-on sale for a hearth sales ticket, but Anderson has seen it happen a lot over the years.

He’s been on staff at the family-owned business since the late 1980s. The late Lou Bourada left the Ottawa Fire Department to start a swimming pool company in 1965.

He called it Poolarama. He expanded into the hearth business in 1978 (The Burning Log), and in the next decade expanded L to R: Paul Anderson, general manager; Derek and Steve Bourada, owners, and Adam Bourada, Operations manager.

PHOTOS: ©2019 COUVRETTE STUDIO. WWW.COUVRETTE.PHOTOGRAPHY.ON.CA.

“We have all the different styles on the floor, and people can try them and see how they look and feel.”

— Paul Anderson

Kensington Dining from CabanaCoast.

again by offering what is often known in Ottawa as garden furniture. He called this part of the enterprise Patio Comfort.

Today the company is operated by Bourada’s children and grandchildren, and it maintains the same concept: one location, three showroom doors, three symbiotic businesses under one roof.

Anderson originally went to work with the swimming pool component of the business. Like all employees then and now, he learned about all the various categories and product lines. He says he naturally gravitated to learn all he could about casual furniture in the early years.

“It was a growing part of the business,” he says, “so it needed somebody to guide its way through the different changes and styles and colors.”

Today, Patio Comfort has about 8,000 sq. ft. dedicated to casual furniture from many of the industry’s leading manufacturers. The decision to focus on upper-end, quality goods was made early on, Anderson says. The strategy was to stick with products “to match what we were carrying with our swimming pools and fireplaces.”

Patio Comfort’s casual furniture brands include Beka Casting, CabanaCoast, C.R. Plastic Products, and RATANA (all based in Canada), as well as Telescope, OW Lee, Kingsley Bate, and Kettler, among others.

Some Canadian casual furniture merchants, especially those that do not focus on outdoor furniture, may place little product on their showroom floors.

Instead, they sell from a catalog while stocking interior furnishings or hardware or another unrelated product line. Not surprisingly, these are low-volume dealers who rely on other goods to generate most of their sales and profits.

Patio Comfort approaches the casual furniture business more like specialty retailers in warmer climates, even though the Ontario outdoor furniture season is shorter than in much of the neighboring United States.

“We get people in, and they can sit on things,” Anderson says. “They’re not buying from a catalog. We have all the different styles on the floor, and people can try them and see how they look and feel.”

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The Canadian Patio Business itself daily, he says. Some retailers grouse about consumers who shop the Internet ad nauseum before finally visiting a store to experience casual furniture in person – but not Anderson. Once shoppers walk into Patio Comfort, they are bona fide sales prospects.

Salespeople are trained to educate customers about the attributes of each category and brand. They point out the array of fabrics available and how products may be highly customized to suit individual tastes. A store visit also is an opportunity to discuss quality, durability, and value, important factors often missing from the sales pitch on an e-commerce website.

“I’m pleasantly surprised at how many people actually buy from us, rather than go back and revert to the Internet sale.”

— Paul Anderson

A salesperson’s job, he explains is to “walk people through the whole idea of showing how something is made, why it is made to last, and made to look good for their backyard.”

Anderson keeps some old cushions on hand, cushions of substandard foam covered in inexpensive fabric not engineered to withstand years in the sun. This, he

Bazza Collection from Telescope Casual Furniture.

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tells his shoppers, is what you risk when purchasing outdoor furniture from Big Box stores or e-commerce sites.

Demonstrations such as these build “confidence that we know what we’re doing,” Anderson says. “I’m pleasantly surprised at how many people actually buy from us, rather than go back and revert to the Internet sale.

“We do a very good job of not pressuring people, but showing them what is available, from us, for their needs. We listen to what they want,” he says.

“We help design their backyards.”

Merchandising Patio Comfort organizes its retail floor primarily by brand. CabanaCoast products here, Telescope products there, “all grouped within their own styles and lines. But that works.”

Anderson sometimes mixes and matches products from different manufacturers in the transition areas between brand displays, demonstrating an understanding that everything doesn’t have to match.

Patio Comfort tends toward a minimalist approach with accessories, which are often limited to baskets or vases of silk flowers on tabletops. “I don’t clutter up the sets with tableware,” he says. “We keep it fairly clean.”

Anderson depends on throw pillows to “offer a punch of color into something that is very monotone or neutral.” Throw pillows, he says, “can give your showroom a really good ‘wow factor.’ A lot of people will ask if throw pillows come with the (furniture) products.”

He finds that the pop of color provided by throw pillows can be a unifying feature.

For example, a group of contemporary furniture and a group of traditional casual furniture – side by side – might be visually unsettling, even if the colorways are similar. Anderson finds that smart use of throw pillows “can tie in the colors between the two.”

The downside to throw pillows, and it’s not much of one, is that they invite being touched and therefore moved. Customers move them. Salespeople move them.

Anderson has appointed himself the throw pillow policeman at Patio Comfort.

“I go through the store and reorganize them to the styling that I like,” he explains. It’s a beat he patrols several times a day.

Gray has become the predominant frame and cushion color in the last couple of seasons, which makes the smart application of throw pillows even more important. But even throw pillows can’t overcome the tedium of a monochromatic showroom.

Kensington Sectional from CabanaCoast.

“You can’t show everything in gray,” Anderson says with a sigh. “It would be very boring for everybody.”

He recalls his early years in the casual furniture business, when the Patio Comfort showroom was a sea of white frames.

Then came the brown frame era. When a single color predominates the showroom, a merchant risks overwhelming shoppers with visual boredom.

In this era of fashionable gray frames and fabrics, Anderson drops in a set with red cushions or blue cushions or even lime green cushions, “the bright, bold, vibrant colors” for “people that want to see something.”

Contemporary Leanings Ottawa is in line with Montréal and Québec City to the northeast, and Toronto to its southwest. The design trend in these influential cities is heavily contemporary, thanks in part to Québec’s strong ties to France, the European continent, and Toronto’s status as a melting pot, an international city.

Anderson finds his customers’ tastes leaning to more contemporary styles these days, though traditional cast-aluminum products still sell well. Sometimes the two styles sell to the same customer.

“People aren’t afraid to mix furniture with a more traditional motif with a sectional that has really sharp lines,” he says.

In shade products, traditional styling touches are out. “I haven’t sold a valance on an umbrella in a couple of years now,” Anderson says.

Patio Comfort has established strong relationships with its manufacturers. “We keep product lines for long periods of time,” Anderson says. “I’m not changing a brand every year or two. We’re dedicated to (our) manufacturers, just as they have some dedication to us.”

Anderson has seen the value of sticking with highly regarded manufacturers that focus on quality; it pays off time and again. The proof is in repeat business. He often recognizes customers who made their first purchase of quality outdoor furniture

www.hearthandhome.com | OCTOBER 2019 | 81

The Canadian Patio Business from Patio Comfort when they were in their 40s. “Now,” Anderson says, “they’re approaching retirement and they’re changing things. They’re downsizing, changing décor, renovating. I’ve seen them come back two and three times.”

What happens to the furniture the retirees are replacing? Often, Anderson says, it goes to their adult children “who will use it and enjoy it.” Eventually, he adds, “they’ll come back to me and say, ‘We’re ready to pick out our own colors and stuff.’ It’s a good cycle.”

Driving north from Ottawa for an hour or so takes you to Cottage Country, a vast region of forests and lakes where urban residents love to get away for long summer weekends or perhaps the entire season.

Patio Comfort has outfitted decks and patios for many customers with cottages.

Anderson notes that cottages in bygone eras tended to be simple, rustic cabins outfitted with hand-me-down furniture.

A milk crate might have passed for a deck chair, but no longer. Cottages today usually lack no amenities and represent substantial real estate investments. Their owners want casual furnishings that “aesthetically look great for that setting,” Anderson says.

St. Tropez from Kingsley Bate.

82 | OCTOBER 2019 | www.hearthandhome.com

“Our company, our brick-and-mortar store, has been a family-oriented business for decades.”

— Paul Anderson

Patio Comfort’s delivery vans make frequent visits to Cottage Country.

When a cottage is much more than an hour away, Patio Comfort uses a service to deliver furniture to its new home.

That, however, is the extent to which Patio Comfort will sell to an outlying area.

Anderson refuses to deal with long distance shoppers from Montréal or Toronto who are phone shopping for a better price. The reason is the inevitable service that comes after the sale. Patio Comfort isn’t able to provide service to a customer in a distant city; therefore, Anderson doesn’t want the sale.

Likewise, he doesn’t like it when faraway casual retailers sell product to customers in Patio Comfort’s trading area.

When those customers need service and see that Patio Comfort sells the brand of casual furniture they purchased else-

where, they show up with expectations of service. It makes for a disappointing situation all the way around.

“I get very upset with a lot of other people in my business (retailers),” Anderson says. “I get mad at the manufacturers that allow this, too.”

Retailers and manufacturers that enable long-distance sales for shortterm profits undercut merchants such as Patio Comfort, Anderson says. “Our company, our brick-and-mortar store, has been a family-oriented business for decades,” he explains. “That’s definitely not the type of service we want to offer our customers.”

Service at Patio Comfort begins with listening to customers, learning about their tastes and home, and helping them select casual furniture that will meet their needs and exceed their expectations. That means lots of customization.

Special orders account for upwards of 65% of sales, Anderson says. Some customers are happy to purchase off the floor or from the warehouse, but most customers want a custom experience.

“They pick out their colors, they pick out their size, they pick out the materials they want,” he says.

Manufacturers’ rapid production times on special orders often enables Patio Comfort to satisfy customers with in-season delivery, even though the season is comparatively brief.

“The manufacturers are getting better with production times,” Anderson says.

Many are able to ship orders in four or five weeks. “We can accommodate people here fairly quickly,” he says.

Ratana and CabanaCoast have a home court advantage when it comes to shipping orders quickly. These Canadian companies stock frames made offshore and are able to fill custom fabric orders rapidly.

Loyalty to products with a “Made in Canada” label sometimes gets lip service from shoppers, Anderson says, but country of origin isn’t as important as quality and value. Canadians, he says, understand that ours is a global economy.

Components of casual furniture may be manufactured in China or elsewhere in Southeast Asia, then shipped to Canada or the United States for assembly.

Canadians are accepting of that, Anderson says. Even if they wanted to buy Canadian, sometimes a product simply isn’t available. Time was when sling furniture was made in Canada, but now, “I don’t know of a furniture manufacturer in Canada that makes sling furniture,” he says. Telescope products, made not so far away in Upstate New York, fill that need, he says, and Patio Comfort’s customers are OK with that.

Canadians also understand that, from time to time, their purchasing power will suffer when the Canadian dollar loses strength against the U.S. dollar. Eventually, however, they know the tide will turn and the advantage will favor their side of the equation. Until then, life must be lived and new casual furniture occasionally must be purchased.

“We have a premium because of the way we live here,” Anderson says. “We

have a great standard of living. We have a great hospital system. Our infrastructure’s good. Our social programs are very good. These are part of living in Canada.”

So, too, is winter, which Anderson points out is a great time to buy and use certain types of casual furniture. Resin goods – such as Telescope’s Marine Grade Polymer (MGP) and furniture made by Canada’s own C.R. Plastic Products – are

good year-round solutions that have particular benefits in the cold months. The furniture is virtually indestructible and doesn’t care how deep the snow is. So long as the predominant color isn’t white, resin furniture is easy to locate when it’s time to take a break from winter sports.

“We do ski. We do skate,” Anderson says. “There are needs for outdoor furniture in the cold months.”

Store Names: Patio Comfort, Poolarama and Burning Log

Gross Annual Sales: >$1 million

Address: 881 Richmond Road, Ottawa, Ontario, Canada K2A OG8 Owners: Derek Bourada, Steve Bourada

Av. Sq. Ft. of Building Space: Showroom: 10,000 Warehouse: 5,000 Outside Area: 5,000

Year Established: 1965

Brands Carried: Patio: Telescope Casual, Beka, CabanaCoast, RATANA, Kettler, Kingsley Bate, Treasure Garden

Website: patiocomfort.ca

Advertising % of Gross Revenues: 3%

E-mail: info@patiocomfort.ca

Advertising: Radio 30%, Newspapers 20%, Magazines 10%, Other 40%

Key Executives: Paul Anderson (General Manager)

Phone: (613) 728-1773 Number of Stores: One Number of Employees: 16 Full-time: 8 Part-time: 8

www.hearthandhome.com | OCTOBER 2019 | 83

VOLUME 24, NUMBER 5

Journal

A P u b l i c at i o n O f T h e H e a rt h , P at i o & B a r b e c u e A s s o c i at i o n

Join the MARCH Through All Four Seasons

U

nique garden terraces, lively music spilling into the streets, exceptional cuisine centered around open-flame cooking…

New Orleans is the city that celebrates the very indoor-outdoor lifestyle that our industry creates.

With Condé Nast Traveler naming it the top “U.S. City for Business Travelers,” New Orleans serves as the perfect host for HPBExpo 2020, North America’s largest indoor-outdoor living industry event, which takes place March 11–14 at the Ernest N. Morial Convention Center. Consistently ranked by Trade Show News Network as one of the fastest growing events nationwide, HPBExpo provides a full-sensory experience centered around the products and trends shaping the industry.

Hundreds of worldwide manufacturers are refining designs, refreshing existing lines, and preparing to bring their brand new products to market. Thousands of attendees are planning their itineraries, researching potential partnerships, and assessing their needs for the coming year, all in an effort to meet growing consumer demands.

Ever-evolving consumer demand has created a 365-day business cycle.

Outdoor living is officially extended well beyond the traditionally temperate months. With efficient radiant heaters, unique lighting solutions, and sophisticated fire pits, patio usage is a full-time reality; and indoors, new designs and technologies transform traditional heating sources into central features of a home’s personality—no matter the temperature outside.

Hearth products continue to advance the use of stylized flames, box configurations, fuel efficiencies, and Bluetooth technology in order to expand their role (and usage) in the home. Designers and architects are taking notice, and now sharing the view that the outdoor “room” deserves the same attention and nuance as the rest of the home, despite region or climate. The bottom line is that the traditional sales cycle is changing, providing new opportunities for retailers to capture additional market share in unexpected ways. With the right combination of products, all four seasons are now open season.

HPBExpo is the place to experience all of these products before your customers begin asking about them. It’s never been more critical to stay ahead of the trends and create new revenue streams.

84 | OCTOBER 2019 | www.hearthandhome.com

Feel the warmth of the products and the people.

“There are things that I didn’t even know existed until today. That’s worth the trip on its own,” says HPBExpo 2019 attendee, Dustin Carey of Northwinds Stove & Fireplace. Experiencing the products is always a huge aspect of HPBExpo, but dig a little deeper and it’s meeting the people behind the products that holds additional value for attendees. “Coming to HPBExpo lets you put a face to a name. You get to know who you’re talking to. I’ve had a catalog from a manufacturer for a year; after meeting them here, we’re now buying from them,” says Kristetta Miller of Louisiana Fireplace.

From getting helpful tips on how to deal with specific challenges back home to forging friendships, there’s a sense of community at HPBExpo. “This is a great place for us to come and connect with other people, talk about our businesses openly, and get ideas,” says Michelle Bergen of B.C. Fireplace Service.

The Key(note) to Better Retail Environments.

Presentation is everything. The way a product is showcased, the salesroom layout, and the customer experience are all deciding factors in closing a deal. In an effort to show retailers how to increase sales, this year’s Keynote Presentation will be delivered by Wayne Visbeen, architect and interior designer behind an iconic list of groundbreaking and effective retail environments. As comfortable on a construction site as he is designing a store layout, Visbeen has a deep understanding of custom Wayne Visbeen. residential design and the current trends shaping the indoor-outdoor living industry. Generously sponsored by Napoleon Products, the HPBExpo 2020 Keynote Presentation aims to provide unique retail insights and highlight the key concepts you will be able to use for better sales and better customer experiences.

New Products. New People. New Orleans.

With three hundred years’ worth of history and a mix of cultures, New Orleans isn’t just a city, it’s an international destination. Famous for being a fun place to visit, you’ll also find block after block of colorful architecture, secret gardens, and contagious music. From jazz clubs and marching bands, to fine dining and drinks at over 1,400 restaurants, to people-watching and site-seeing, the city is full of awe-inspiring experiences.

However you decide to take in New Orleans, the city perfectly complements the sense of community, authenticity, and inspiration of HPBExpo.

A Show as Unique as New Orleans.

Along with several new aspects of the HPBExpo Education Program, there are key features that will set HPBExpo 2020 apart from other events. A showcase of New Orleans-style flair will include a Mardi Gras parade in the Outdoor Burn Area and a variety of NOLAinspired events and activities. Operation BBQ Relief will also be back, generously providing lunch for veterans in New Orleans.

Check HPBExpo.com and social media regularly for updates as the details of these special events continue to come together.

The HPBA Journal is intended to provide in-depth information to the hearth and outdoor products industries. Statements of fact and opinion are the responsibility of the authors alone and do not necessarily reflect the opinions of the officers, board, staff or members of the Hearth, Patio & Barbecue Association.

MARCH ONWARD!

NOW is the time to start planning for HPBExpo 2020. Experience an event and a city like no other. The first step in the MARCH THROUGH ALL FOUR SEASONS begins with registering today at hpbexpo.com. The very next step is to lock in your accommodation with discounted rates in the official HPBExpo hotel block. Then, join the ongoing worldwide conversation by following HPBExpo on Facebook, Instagram, and Twitter. See you there; and see you next March in New Orleans!

Copyright ©2019 by the Hearth, Patio & Barbecue Association. All rights reserved. Reproduction in whole or in part without written permission of the Hearth, Patio & Barbecue Association is prohibited. Direct requests for permission to use material published in the HPBA Journal to media@hpba.org.

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| NEW PRODUCTS |

NEW PRODUCTS AT HIGH POINT Pelican Reef/Panama Jack

The Panama Jack Sandcastle Sectional is composed of two loveseats, an ottoman, a coffee table and end table.

The sectional comes in a choice of two standard finishes — gray or white aluminum — with off-white outdoor fabric on the cushions, or upgrade to Sunbrella fabric for a personalized look.

Phone: (888) 820-4455 Website: www.pelicanreef.com Market On Green - 401, Floor 4

Robert Abbey Fine Lighting

Lighting any outdoor space – from a doorway or a pathway approaching the garden or Outdoor Room – the Rose Large Outdoor Pendant has an attractive black powdercoated finish with wavy glass shade panels. Three feet of chain completes the stylish light.

Phone: (828) 322-3480 Website: www.robertabbey.com IHFC - W244, Wrenn, Floor 2

InsideOut Performance Fabrics

Justify is a soft woven chenille fabric with a textured herringbone weave. The balance of simplicity and dimension make the fabric the perfect choice for any home furnishings application.

Phone: (828) 874-2181 Website: www.insideoutperformancefabrics.com 200 Steele - 313, Floor 3

86 | OCTOBER 2019 | www.hearthandhome.com

Sifas USA

Marrying several unique pieces to create an outdoor Art Deco ambiance, the Riviera Collection is inspired by outdoor design of recent years, yet reinvented for a modern look. The black-and-white fabric strap sofa uses braided tube polyester; other pieces include a rope fabric lounge chair and wide aluminum coffee table.

Phone: (786) 554-9924 Website: www.sifas.com Suites At Market Square - G-6033, Ground

Barlow Tyrie

Designed with mid-century modern style, the Monterey Teak Armchair has a seat and back that are shaped to mimic the “pull” of the cord in the corded version of the chair. Fitting perfectly around a dining table or as an accent seating option, the chair fits any outdoor area.

Phone: (800) 451-7467 Website: www.teak.com Market Square - 191, Floor 1

Heather Ashton Design

Domiziani America

With a durable stainless-steel powder-coated frame, the Alex Lounge Chair is part of the HAD Collection. The chair is cushioned in Glee Granite, a durable Sunbrella fabric. The frame comes in metallic, or homeowners can choose a custom color.

Phone: (323) 633-2044 Website: www.heatherashtondesign.com IHFC - IH200, Commerce, Floor 1

Durable and beautiful, ceramic Volcanic Stone & Lava Rock Tables are handcrafted in Italy. Fade, frost and burn resistant, the tables maintain their original characteristics in temperatures ranging from over 1000°C to -50°C. They also are resistant to salty air. The stone is shock- and acid‐proof and more difficult to scratch than marble.

Phone: (214) 350-9200 Website: www.domizianiamerica.com Suites At Market Square - M-2035, Mezzanine

Xcella

The Elly Accent Table adds chic flair to any space. It has a round white marble top inlaid with brushed brass geometric lines.

Supported by three angled legs crafted from hardwood, the table is finished with brushed brass leg caps.

Phone: (647) 245-4855 Website: www.xcella.ca IHFC - H710, Hamilton, Floor 7

Pearl Mantels

FLIKR Fireplace

Fueled by rubbing alcohol, the Flikr Fireplace is portable, clean and safe for use indoors or outside. The fireplace has adjustable, thermal feet to protect furniture. It is safe to cook over and will not dirty indoor areas/ ceilings with soot.

Website: www.flikrfireplace.com Suites At Market Square - T-813, Top Floor

Non-combustible, and designed with fiberglass/cement aggregate shelves, the light-weight (29 to 42 lbs.)

Zachary Mantel is strong, weatherresistant and easy to hang. The mantel comes in 48-, 60- and 72-inch lengths in a choice of four finishes. Fontana and Little River provide a natural wood look; the Graywash and Whitewash have a contemporary feel.

Phone: (901) 853-8237 Website: www.pearlmantels.com Suites At Market Square - M-7015, Mezzanine

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| NEW PRODUCTS |

Indo Puri

The Gili Lounge Chair has a unique style with modern flair.

The durable frame is made of powder-coated steel and synthetic rope in a dark gray color. The chair has a quick dry foam back cushion and seat; cushions come in a choice of in-stock Sunbrella fabrics.

Phone: (404) 380-1708 Website: www.indopuri.com Suites At Market Square - G-7048, Ground

Couture Jardin

Escapade is a unique double lounger with independent adjustable backrests.

Sail away in comfort under the sheltering canopy. Made of all-weather wicker which is intricately woven on an aluminum structure, the upholstery in COUTUREtex fabric. The bow shelf is an ultra-resistant HPL material.

Phone: (754) 200-8269 Website: www.couturejardin.com IHFC - IH601, Commerce, Floor 1

DeCasa Marble


Kenroy Home

The Tanglewood Outdoor Table Lamp is made of faux rattan and brings unique style and rustic charm to any outdoor space. All weather, powdercoated steel has a rich, oil rubbed bronze finish for a warm and inviting look that will resist fading in the sun and inclement weather, season after season.

Phone: (904) 642-4340 Website: www.kenroyhome.com IHFC - H333, Hamilton, Floor 3

KSO Furniture

The Navona Rectangular Dining Table has a light creamy white texture in travertine stone with a naturally-occurring porous surface. Little holes add interest and depth to the modern table. An attractive coating prevents food from being trapped in the surface. The eye-catching base is sleek metal.

Designed with galvanized steel and pine wood for a light industrial feel, the Junior Bistro Dining Set is carefully handcrafted. The set exudes contemporary style, clean lines and a size that is ideal for smaller spaces.

Phone: (803) 862-9369 Website: www.decasamarble.us IHFC - H719, Hamilton, Floor 7

Phone: (704) 661-2472 Website: www.ksofurniture.com Market Square - M-5034, Mezzanine

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Abigails

Gathered Garden Artichoke Planters come in large and small sizes. Handmade in Italy, the white-glazed ceramic artichoke planters make a perfect addition to a garden or home. Use the planters together or separately to showcase greenery and florals.

Phone: (800) 678-8485 Website: www.abigails.net IHFC - IH406, Commerce, Floor 1

alma artte

The Upcycled Iron Bicycle Clock is handcrafted from the remains of a discarded bicycle, generally used in India, as is evident by the shape of the handle and the bell. The clock is fitted with state-ofthe-art technology from Taiwan and is a statement masterpiece.

Phone: (919) 376-5992 Website: www.almaartte.com Suites At Market Square - T-721, Top Floor

Olympus Minerals

Big Ass Fans

The i6 Fan has SenseME technology (temperature, humidity, and motion sensors) providing energy efficient, automated, smart operation. Control options include a Bluetooth remote, smartphone app, voice command with Amazon Alexa and Google Assistant plus automation integration with Nest Learning Thermostat. The fan comes in four finishes and three size options.

A little candlelight sets the mood for comfort and romance. Handcrafted with either crystal points, or tumbled or rough-cut gemstones, candleholders come in various shapes and sizes, and will enhance the natural beauty of any space.

Phone: (859) 899-5343 Website: www.bigassfans.com Suites At Market Square - M-5021, Mezzanine

Phone: (973) 992-9451 Website: www.olympusminerals.com Suites At Market Square - M-8020, Mezzanine

Intricately crafted, the Ivy Kamere Planter is made of carefully dyed sisal fiber and sweet grass. The planter makes a stunning statement piece and is a stylish storage solution or container for favorite plants on the patio.

Kazi Goods

Phone: (858) 333-8484 Website: www.kazigoods.com Suites At Market Square M-3034, Mezzanine

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| Business Climate |

AUGUST SALES In early September Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, patio, and barbecue products, asking them to compare August 2019 sales to August 2018. The accompanying charts and selected comments are from the 182 usable returns.

RETAILER SALES - U.S. AND CANADA 32% 32% 32%

42%

HEARTH HEARTH HEARTH 26% 26% 26%

42% 42%

41% 41% 41%

August 2019 vs. August 2018 21% 29% 31% 21% 29% 21% 29% BARBECUE PATIO 31% 31%

29%

SPAS SPAS 21% SPAS

29% 29%

BARBECUE BARBECUE

PATIO PATIO 28%

50%

28% Retailers Up 28%

Retailers No Change

50% 50%Retailers Down

Retailers Up

Retailers No Change

Retailers Down

Retailers Up

Retailers No Change

50% 50% 50%

21% 21%

Retailers Down

In August, 50% of Spa retailers, and 42% of Hearth retailers were UP; 31% of Patio retailers, and 21% of Barbecue retailers were also UP.

13-MONTH YEAR-OVER-YEAR RETAIL SALES

HEARTH HEARTH19% HEARTH19% 10%

August 2019 vs. August 2018

20 15

9%

5% 5% 4% 4% 4% 4% 19% 2% 1% 10% 3% 9% -2% 5% 5% 4% 4% 10% 3% 9% 4% 4% -2% 5% 5% 1% 4% 2% 4% 4% 4% 8/18 9/18 6/19 7/19 8/19 3% 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 2% 1% -2% 8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19

20 10 15 5 20 10 0 15 -55 10 0 5 -5 0 -5

8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19

PATIO PATIO PATIO 7%

3% 12% 2% 6% 2% 2% 2% 2% -3% -6% 0% 0% 7% 12% 6% 3% 2% 2% 7% -6% 2% 2% 2% 0% -3% 0% 6% 3% 2% 2% 2% 2% 2% -6% 0% 0% -3% 8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19

0% 1% -2% 1% 0% 0% 0% -4% 2% 1% -2% 2% 2% 0% 1% -2% 1% 0% 0% 0% -4% 2% 1% -2% 2% 2% 0% 1% -2% 1% 0% 0% 0% -4% 2% 1% -2% 2% 2%

8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19

8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19 8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19

20

12%

BARBECUE BARBECUE BARBECUE

SPAS SPAS SPAS 21%

15 20 10 15 5 20 10 0 15 -55 10 0 5 -5 0

5% 5% 5%

7% 7% 7%

21% 9% 9%

21%

12%

6% 12% 5% 1% 4% -7% 6% 12% 5% 4% 9% 9% 4% 1% -7% 6% -11% 5% 4% 4% 1% -7% -11% 9% 9%

4%

-11%

8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19

-5

8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19

8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19

In August, Spa retailers led the way with a 6% gain in sales, followed by Hearth retailers at 4%. Patio and Barbecue retailers trailed with a 8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19 8/18 9/18 10/18 11/18 12/18 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19 gain of 2% each.

90 | OCTOBER 2019 | www.hearthandhome.com

WEATHER REPORT

For the following weather charts, the numbers for each state reflect the temperature ranking for the period since records began in 1895.

RETAILER COMMENTS

STATEWIDE AVERAGE TEMPERATURE RANKS August 2019 88

111

NORTHEAST Connecticut: (Hearth, BBQ) “Up, up, up, business is back. But for how long?”

Massachusetts: (Hearth) “August was

a good month. Massachusetts typically has a tax-free weekend which helps drive sales for the month.”

“The 2020 wood stove issue is somewhat of a fiasco. Can’t get product, and what we can get is so much more expensive than before.”

— New York

New York: (Hearth) “Sold the business!

We are out of here and not looking back!”

New York: (Hearth, Spas) “Warm weather

usually doesn’t sell hearth products, but this has been a very busy August for a change.

Store traffic is up. In our showroom, I am no longer selling accessories such as hearth rugs, fireplace sets, ash vacs, and log hoops.

The Internet sellers seem to have that market, and products such as these are held over year after year.

“The 2020 wood stove issue is somewhat of a fiasco. Can’t get product, and what we can get is so much more expensive than before.”

114

75 102

114 111 120 114

97

122 75

114

122

120

120

124

124 Record Coldest

120

124 97

124 102

Much Below Average

85 89 50 78 98 44 105 33 76 96 87 32 88 112 45 50 65 114 91 95 88 81 108 85 55 62 96 89 43 89 50 78 98 109 89 8344 105 33 111 76 96 96 102 87 1 = Coldest 125 = Warmest 32 88 112 45 124 11450 65 114 91 95 81 108 116 55 62 96 89 109 89 83 National Climatic Data Center/NESDIS/NOAA 111 1 = Coldest 96 102

43

Below Average

Near

Average 124

Above Average

114

STA

STA

Much 125 =Record Warmest Above Average Warmest

116

In August, Much Above Average temperatures hit the West Coast, Southwest, Florida and Delaware, in all, encompassing 11 states.

National Climatic Data Center/NESDIS/NOAA

Record Coldest

Much Below Average

104

Below Average

Near Average

Above Average

Much Above Average

Record 93 Warmest 98

101 116 94 STATEWIDE AVERAGE TEMPERATURE RANKS 69 101 118 46 90 83 June – August 2019 117 101 78 58 121 96 44 73 78 121 98 110 91 93 100 77 118 101 46 98 55 104 109 101 111 67 56 80 77 116 94 104 53 5069 101 118 111 46 109 90114 83 77 88 117 78 101 1 = Coldest 125 = 121 Warmest 58 96 92 44 105 73 78 121 98 121 91 110 100 77 118 101 46 55 109 111 80 104 53 50 111 National Climatic Data Center/NESDIS/NOAA 114 109 88 77 1 = Coldest Warmest Record Much Below Near Much 125 =Record 92 Above 105 Coldest Below Average Average Average Average Above Average Warmest 121 67

56

77

National Climatic Data Center/NESDIS/NOAA

Record Coldest

Much Below Average

Below Average

Near Average

Above Average

Much Above Average

Record Warmest

102

ST

ST

STA

53 65 55 In the period from June through August, 9 states experienced Much 70 55Above 50 71 Average 91 temperatures.

117 59 23 71 58 54 57 STA 51 68 125 81 69 58 62 18 102 Click here for47a mobile 6 38 53 27 64 125 118 72 friendly reading experience 60 | OCTOBER 2019 65 | 91 35 84 105 www.hearthandhome.com 55 69 70 55 59 114 50 91 101 72

84

105

| Business Climate |

Pennsylvania: (Hearth) “Cool evenings

have increased foot traffic in the showrooms.

Preparing for a busy fall season.”

Pennsylvania: (Hearth) “August was only down a little because we ran a promotion last year. Very good year so far.”

53

111

114

104 109 88 77

50

1 = Coldest 125 = Warmest

92

105

121

WEATHER REPORT

National Climatic Data Center/NESDIS/NOAA For the following weather charts, the numbers for each state reflect Record Much Below Near Abovebegan in Much the temperature ranking for the period since records 1895. Record

Coldest

Below Average

Average

Average

Average

Above Average

Warmest

STATEWIDE PRECIPITATION RANKS August 2019

Pennsylvania: (Patio, Spas) “All OK,

STAT

nothing exceptional.”

102

72

SOUTH Arkansas: (Hearth) “Disappointing re-

91

tail month and YTD. Too hot and too wet for my products. Come on winter!”

“It does appear to me that, although the economy seems to be doing well, I do notice people being a little more conservative and thinking things through before any purchase.”

— North Carolina

North Carolina: (Hearth, Patio, BBQ)

“New construction is very strong. Retail is better than average.”

North Carolina: (Hearth, Spas) “It does

appear to me that, although the economy seems to be doing well, I do notice people being a little more conservative and thinking things through before any purchase.”

Texas: (Hearth, BBQ) “Last year we had

a surge in fireplace sales due to the flood.

This year is more normal.”

Virginia: (Hearth) “We always get a

kick out of when the hearth sales suddenly pick up. It’s always in the

92 | OCTOBER 2019 | www.hearthandhome.com

84 59

105

55

58

125

18

6

35 6

27 23

55

50

117

125 114 25

57

23

68

81 69

64 69

118 101

102 79

75

54 62 47 60

61

71 51 58 38

53 65 70 71

59 1 = Driest 125 = Wettest

103

National Climatic Data Center/NESDIS/NOAA

Record Driest

Much Below Average

Below Average

Near Average

Above Average

Much Above Average

Record Wettest

In August, both Nebraska and Kansas reached Record Wettest status, while three neighboring states – South Dakota, Missouri, and Oklahoma – experienced Much Above Average precipitation.

hottest part of August and continues through fall and winter – with the weather permitting.”

Illinois: (Hearth, Patio, BBQ) “I think

Virginia: (Hearth, BBQ) “The first open

Remodel replacement up. Can’t find service or installers.”

day in September has started off with a bang!”

MIDWEST Illinois: (Patio) “As we started our floor sample sale to make room for our fall product, we found people ready to buy.

The past few years our floor sample sale has produced only modest results. This year we have pulled product from every corner of the warehouse to fill the floor.

On top of that, decks and patios are finally being completed after a very wet start to the season. Many wanted that instant gratification, but some opted to order the styles and colors they wanted.

Our woven product was still the big seller for August.”

we are still making up for a bad spring!”

Iowa: (Hearth, BBQ) “Flat builder sales.

Michigan: (Patio, BBQ) “The cooler tem-

peratures have encouraged home and cottage owners to get construction and hardscape projects underway. Although affecting sales for this month, we look forward to future sales once those outdoor spaces are ready for furniture and accessories.”

Missouri: (Hearth, BBQ) “August heat-

ing sales were down from last August but, compared to 2017, it still shows an upward trend. The spring business was negatively impacted by excessive rain that persisted for weeks. Business has rebounded with the good weather as of late. Barbecue was severely impacted by

the cool, wet weather. It also has rebounded but not enough to catch up to last year’s stellar sales.”

Ohio: (Hearth, BBQ) “August sales were

relatively flat as we prepared for the upcoming heating season. We’re still benefiting from strong numbers in the first quarter. If the hearth season gets rolling early, we project at least a 20% higher finish to the calendar year than we’ve ever had. Bring on the Polar Coaster!”

Ohio: (Hearth, BBQ) “August sales

volume was way up (almost double) over last year. We had a lot of early birds looking to upgrade their hearth appliances before the cooler weather arrives. We keep focusing on customer service, product knowledge, and positive staff attitude, and the results are undeniable! We’re looking forward to cold weather and a hot season here in Ohio!”

Wisconsin: (Hearth) “Strong retail and

builder sales. Sales are below last year but 2018 was a phenomenon.”

Wisconsin: (Hearth, Patio, BBQ) “We

can sell any job that comes into our store.

135.8 135.1

133.4 131.4 124.3

100 90

Aug Year 6 Mo. Jun Jul Ago Ago 2019 2019 2019

“I think people are researching online then calling to set up an appointment; they are more know­ ledgeable this year on the products. It’s going to be an interesting year.”

(Hearth, Patio, BBQ) “Store traffic very slow, sales continuing but down overall. Hopefully a bleak forecast for the upcoming winter will jostle people off their butts. A very wet spring has hurt contractor business as well. Low interest rates should perk up sales, but not as many new homes as of now. Contractors are baffled as well.”

Wisconsin:

Wyoming: (Hearth, BBQ) “Last year

August was excessively busier than any August has been. It was no surprise we were down in sales this August from the previous one. Overall outdoor product sales have been low this year. I wish I knew the cause!”

WEST

— California

High-end is in big demand. Multiple fireplaces in the home is now the norm.

Have never seen this much new construction of second homes in 30 years. Gas products are really moving, but wood stoves have made a comeback in August. I could never have dreamt up this much business. Wow.”

California: (Hearth, BBQ) “Because of

the rebuild in our area, sales continue to climb.”

California: (Hearth BBQ, Spas) “Walk-

in traffic is slow but we are still booked until October. I think people are researching online then calling to set up an appointment; they are more know­ ledgeable this year on the products. It’s going to be an interesting year.”

CONSUMER CONFIDENCE The Consumer Confidence Index declined marginally in August, following July’s rebound. The Index now stands at 135.1 (1985=100), down from 135.8 in July.

“Consumer confidence was relatively unchanged in August, following July’s increase,” said Lynn Franco, senior director of Economic Indicators at The Conference Board.

“Consumers’ assessment of current conditions improved further, and the Present Situation Index (177.2) is now at its highest level in nearly 19 years (November 2000, 179.7).

“Expectations cooled moderately, but overall remain strong. While other

parts of the economy may show some weakening, consumers have remained confident and willing to spend. However, if the recent escalation in trade and tariff tensions persists, it could potentially dampen consumers’ optimism regarding the short-term economic outlook.”

A reading above 90 indicates the economy is on solid footing; above 100 signals strong growth.

The Index is based on a probabilitydesign random sample conducted for The Conference Board by The Nielsen Company.

1985 = 100

www.hearthandhome.com | OCTOBER 2019 | 93

| Business Climate |

California: (Hearth) “2019 has been a

Wyoming: (Hearth) “Lack of qualified,

great year; people are doing their homework, but we give them the knowledge to buy from us. Educate your customer so they can make an educated decision.”

going to hold off — very indecisive customers. Feels like a recession is coming on! Hardly any interest in high-end barbecues this year.”

skilled staff contributed greatly to lower numbers.”

CANADA

British Columbia: (Patio, BBQ, Spas)

Colorado: (BBQ) “Traeger and Big

Ontario: (Hearth, Patio, BBQ) “It is what

“Pretty decent August, just shy of record sales for the month. We have exited the fireplace business to focus on outdoor products, and our renewed focus is starting to pay off already.”

Green Egg are still hot. Green Mountain Grills’ Prime Series is coming on strong now that we have inventory.”

Oregon: (Hearth) “The weather was

very mild last winter and has continued.

My office did not complete the follow-up process for estimates and leads.”

it is and ain’t nothin’ going to change it. It’s a Yo-Yo business, get used to it or go home.”

Ontario: (Hearth, Patio, Spas) “We have

had surprising sales even with the rainy weather in our spring. Many returning customers with great references for new clients.”

Columbia: (Hearth, BBQ) “Hearth product sales are consistently holding up to 2018 which was a very solid year. As a business in a very rural area, we have built a reputation for honesty and ontime delivery of quality products which has proved itself.”

British

Oregon: (Hearth) “We are rocking and

rolling in August after a tough start to the year. Things are looking good heading into the season; our goal is to make up ground from the beginning of the year to finish even with 2018 (which was a record breaking year).”

Ontario: (Hearth, Patio, BBQ) “Sales of

brand name barbecues continue to slow as specialty dealer selections are being absorbed by the Big Box stores.

Manufacturers are looking at the big dollar orders and forgetting that the specialty shops are the ones they can depend on for quality sales and service of their products.”

Columbia: (Hearth, BBQ) “Getting a hearth sale is taking lots of work; quoting multiple units then saying they are British

STOCK WATCH COMPANY – EXCHANGE

SYMBOL

52 WEEK

WEEK ENDING

% CHANGE

HIGH

LOW

2-Aug-19

30-Aug-19

4 WEEK

26 WEEK

52 WEEK

MARKET CAPITALIZATION ($000,000)

Standard & Poor’s 500 (a)

S&P

3,025.86

2,351.10

2,932.05

2,926.46

-0.2%

4.4%

0.9%

HNI Corporation (b)

HNI

44.79

29.90

33.06

31.19

-5.7%

-19.1%

-29.3%

$1,340.00

Pool Corporation (c)

POOL

200.00

136.83

188.91

196.38

4.0%

23.3%

19.6%

$7,840.00

Restoration Hardware (b)

RH

162.10

84.11

136.83

142.35

4.0%

-8.9%

-10.5%

$2,660.00

Wayfair (b)

W

173.72

76.60

127.31

112.74

-11.4%

-33.6%

-16.6%

$10,410.00

NOTES: (a) = Standard & Poor’s 500 is based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. …It is considered one of the best representations of the U.S stock market, and a bellwether for the U.S economy. (b) = New York Stock Exchange. (c) = NASDAQ.

52-WEEK STOCK PRICE CHANGE 30%

19.6%

20% 10% 0%

0.9%

-10%

-10.5% -16.6%

-20% -30%

-29.3%

S&P

HNI POOL RH

W

As of 30-Aug-2019

94 | SEPTEMBER 2019 | www.hearthandhome.com

16000 15000 13000 $12,000 11000 $10,000 9000 $8,000 7000 $6,000 5000 $4,000 3000 $2,000 1000 $0

MARKET CAPITALIZATIONS (US $000,000)

HNI

POOL 31-Aug-2018

RH 30-Aug-2019

W

MARKETPLACE

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SUBSCRIBE ONLINE For Print and Digital Editions!

www.hearthandhome.com SUBSCRIBE ONLINE www.hearthandhome.com ForEditorial Printcoverage and Digital of all threeEditions! industries is provided in every issue.

www.hearthandhome.com | OCTOBER 2019 | 95

CLASSIFIEDS Help Wanted Maine, the way life should be… we are located just 12 miles from stunning Acadia National Park… come and enjoy nature’s beauty mountains, lakes, ocean coastline, yet with small city benefits including great food, the arts and a wide variety of community activities. Four seasons with long winters creates a strong hearth market.

Due to recent expansion, Northern Maine’s largest hearth dealer has an opening for an operations manager ​to oversee three retail locations, and a ful l installation and service dept of approximately 20 employees total. Ideal candidate would have a strong background in the hearth industry with a superior knowledge of sales as well as the installation and repair of gas, wood, and pellet appliances.

Reps Wanted

Product for Sale

QUÉBEC & MARITIMES

OEM INDIA SUPPLIER

Amantii Electric/Sierra Gas products,

part of Canned Heat Inc. is looking for experienced sales representatives. Technical experience a bonus. Other lines permitted.

Ceramic kamados, wire forms, wire grates, metal fabrication and pressure die casting.

Reply to: Classifieds@hearthandhome.com Reference in subject line: A-10-19

Please e-mail enquiries to gddelta88@gmail.com

Business for Sale

Hearth & Fireplace Showroom Located in the Greater Vancouver Area, 30+ years in business, looking to sell or partner with investor/collaborator.

For more information/details email: fireplacesandmorevancouver@gmail.com

• Experience with residential and commercial contractors and architects a plus.

• Above average compensation package for the right individual.

Please send a letter of interest and resume to​ matthew@mainestoves.com​ to learn more about this opportunity to live and work in the spectacular state of Maine.

Advertiser

Call the Sales Department at (800) 258-3772

Hearth & Home’s Editorial Invitations It’s time for Hearth & Home to publish a collection of the best, most creative, well-designed electric fireplace installations, so that we can all see where electric fireplace designs are going, and how specialty retailers can profit from custom installations.

Submit hi-res images, and project details, for possible inclusion in our January issue.

Deadline: November 1, 2019

Submit information and images online at www.hearthandhome.com Any questions, please contact Erica Paquette at paquette@villagewest.com

This ad index is an additional service provided by Hearth & Home to its advertisers.

Hearth & Home assumes no liability for any incorrect information.

Ad Index Apricity

1 Column x 1 Inch Minimum Price per column inch = $175

Page

25,C4

Phone

Website/e-mail

(888) 997-7623

www.apricityoutdoor.com

Blaze King

27

(800) 456-8818

www.blazeking.com

Blaze Outdoor Products

53

(866) 976-9510

www.blazegrills.com

Castelle

65

(855) 612-9800

www.castelleluxury.com

Dansons Group / Louisiana Grills

19

(877) 303-3134

www.louisiana-grills.com

DCS by Fisher & Paykel

48, 49

(800) 433-8466

www.dcsappliances.com

enerzone / SBI Stove Builder International

20, 21

(418) 527-3060

www.enerzone-intl.com

95

(800) 622-1359

www.escalera.com

Escalera Hearth, Patio & Barbecue Association

3

(703) 522-0086

www.hpbexpo.com

IMC – Las Vegas

55

(702) 599-3046

www.lasvegasmarket.com

Lovinflame

29

909-781-8462

Montigo

31

(800) 378-3115

www.montigo.com

Napoleon Fireplaces & Grills

www.lovinflame.com

8, 9

(800) 461-5581

www.napoleonfireplaces.com

36, 37

(800) 569-1425

www.olympiachimney.com

C2

(888) 223-0088

www.pacificenergy.net

Pará Tempotest USA

66, 67

(972) 512-3534

www.tempotestusa.com

Peak Season

10, 11

(866) 606-6330

www.peakseaoninc.net

(888) 726-3445

www.sandhillwholesale.com

Olympia Chimney Supply Pacific Energy

Sand Hill Wholesale & Mfg.

6

Spartherm

C3

+49 5422 9441-0

Telescope Casual Furniture

15

(518) 642-1100

www.spartherm-america.com www.telescopecasual.com

Travis Industries

43

(800) 654-1177

www.travisproducts.com

Valor / Miles Industries

17

(800) 468-2567

www.valorfireplaces.com

Veranda Classics

73

(973) 428-0400

www.verandaclassics.com

Wittus Fire by Design

95

(914) 764-5679

www.wittus.com

96 | OCTOBER 2019 | www.hearthandhome.com

Who Reads Katherine Marcakis, for one!

?

Engineering Specialist at Supreme Wood Burning Products, Montréal

Special Interests/Hobbies: “Traveling, reading (preferably by a roaring fire), spending time with my family. People are always surprised to learn how much time we spend together as a family despite all working together.”

Problems/Issues Facing the Hearth Industry: “EPA’s perseverance over the years on minimizing emissions from woodburning appliances, municipalities’ intermittent bans on wood-burning on forecast days of high pollution, and city and state regulations scrutinizing gas appliances with the implementation of Zero Net Energy policies have instilled negative misconceptions to homeowners.

“As a wood-burning appliance manufacturer, it’s very frustrating because we put tremendous effort in designing wood-burning products that meet stringent EPA requirements while not compromising on heat output, ease of use, and aesthetics. It’s imperative to educate people that burning wood doesn’t equate to a detrimental impact on the environment and our health. Also, many new housing developments are omitting fireplaces in their blueprints because of space constraints and adherences to limited budgets.”

Key Trends in the Hearth Industry Today: “Industry trends do vary from market to market. Some markets are leaning more toward modern, cleaner-looking, wood-burning appliances, whereas other markets are still high in demand for traditional, more ornate fronts. However, the one common constituent in all markets is homeowners’ cynosure for a larger, uncompromising viewing area of the flames. Glass size is one design feature where bigger is always better.”

Advice to Retailers on Increasing Business: “We have the pleasure of working with such dedicated retailers who have successfully been running their businesses for longer than I have been working in the industry, and I know I’m not in a position to be giving them advice. However, with the NSPS 2020 emissions limit coming into effect in May, there’s never been a more opportune time for retailers to invest in their showrooms by replacing non-compliant appliances with products having EPA emissions of 2.0 g/h or less. Retailers don’t want to find themselves in the predicament of having stock of a product they are no longer allowed to sell come May 2020.”

Forecast for Your Sales in 2020: “I’m optimistic for 2020. Our non-catalytic, patented Clean-Burn technology has enabled Supreme to offer a full line of wood-burning products with variable burn rates that are NSPS 2020 compliant. We have a lot of exciting new products in the works that we are eager to introduce at the HPBExpo in New Orleans.”

Years Reading Hearth & Home: “Ten years. My sister Anastasia handed me the first issue I read of Hearth & Home when I started working full-time in the industry.”

Reasons for Reading Hearth & Home: “I read Hearth & Home to keep track of new products in the market and industry trends. We are blessed to be in an industry as close-knit as ours, and I especially love reading Hearth & Home’s articles featuring friends in the industry.”

Click here for a mobile friendly reading experience

| Parting Shot |

DIAMOND ON FIRE

T

he MONROE see-thru suspended fireplace is part of the VITA Collection that is handcrafted by craftsmen in southern Ontario. It is available in two fuel options – Vapor-Fire, using water as a fuel source, or gas (natural gas or propane).

The Vapor-Fire has an augmented-reality flame effect, providing the ambiance of a real fire. The 100% operating efficiency of this unique system provides a Green alternative for sustainable building requirements.

Click here for a mobile

reading experience 98 | OCTOBER friendly 2019 | www.hearthandhome.com

The distinctive character and diamond shape of this unique model fits perfectly with the contemporary look currently in vogue. It was designed and manufactured by CF + D custom fireplace design.

CF + D, 5230 Harvester Road, Unit #2, Burlington, Ontario, Canada L7L 4X4; (905) 681-3070, www.customfireplacedesign.com; michelle@customfireplacedesign.com

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7

OUTDOOR. ELEVATED.

CARMEL Collection

Designed and crafted exclusively for specialty retailers, Agio’s new Apricity brand delivers the highest quality and most trendsetting looks in the industry. Are you prepared to take your product to the next level?

www.apricityoutdoor.com