Bubbling over: How Ottawa’s Bathorium is prepping for a $2.5M capital raise

For Gregory Macdonald, the founder and CEO of Ottawa-based Bathorium, his upcoming fundraising round is about one question: “How will we be the top bath brand in the world?”  From B2B and B2C to supply chain to digital ads and more, Macdonald and his team are pulling out all the stops as they prepare to […]

For Gregory Macdonald, the founder and CEO of Ottawa-based Bathorium, his upcoming fundraising round is about one question: “How will we be the top bath brand in the world?”  From B2B and B2C to supply chain to digital ads and more, Macdonald and his team are pulling out all the stops as they prepare to drum up $2.5 million starting in 2025, representing the company’s first external capital raise. But for Macdonald, it’s not his first experience “raising dough.” In fact, Macdonald was a 22-year-old master breadmaker when he visited Italy in 2014 and discovered a love of luxury bathing. “I was staying with a lovely woman in Positano, Italy. Guests shared a bathroom that had a gorgeous clawfoot tub and a view of the harbour,” Macdonald recalled. “A shelf was stacked with all these oils and clays, dried flowers and herbs. There was even a block of cocoa butter and a cheese grater. When she asked if she could draw me a bath, after weeks of hostel showers, I said, ‘Absolutely!’”  That was the moment that inspired Macdonald to recreate his experience back home. Upon his return to Toronto, creative bread recipes were replaced by bath product R&D.  Macdonald began by making balms from the same 15 ingredients used by his Italian hostess and stuck closely to the traditional values. No chemical drying agents, alcohol, synthetic fragrances or colourants are used in Bathorium products.  “Instead, we get creative,” Macdonald said. “Our colourants use beetroot powders and butterfly pea flower extracts, all of our scents are botanical and use organic essential oils. So our (cost of goods) is much higher because I never want to win on price, I want to win on experience and quality.”  Four years later in 2018, Macdonald and his kitchen-based operation made an appearance on Good Morning America’s Deals & Steals, which soon catapulted the company to $1 million in annual sales.  Macdonald quit his day job, left Toronto and returned to Ottawa, where his large family was ready to pitch in to meet the flood of orders resulting from his TV appearance. Now, with a company celebrating its 10th anniversary and a product line enjoyed in more than 30 million bathtubs, Macdonald feels it’s the right moment to pursue external capital.  It also helps to know that the global wellness industry is valued at more than US$6 trillion, according to the Global Wellness Institute.  For Alyse Kirkby, who became Bathorium’s marketing manager and first full-time employee in 2019, it’s all about expanding the company’s B2B business and gaining more of a presence in the U.S. market. 

Kirkby has already overseen significant growth in Bathorium’s B2B channels and developed relationships with more than 1,000 retail and hospitality partners across North America and the Caribbean.  Her multi-channel strategy has resulted in partnerships with Holt Renfrew, The Detox Market, Whole Foods and Costco, as well as luxury properties such as Four Seasons Hotels & Resorts, The Ritz-Carlton, and Nobu Hotels.  “We’ve grown our sales team and that allows me to focus on our spa and resort account, which has huge growth potential,” Kirkby said. “With this upcoming raise in January, we’ll be able to do more trade shows in the U.S. They are costly, but the ROI on those will be massive.”  Mark Rhymes, Bathorium’s director of operations, will be overseeing a big scale-up to equip the company for growth. 

“We have distribution points in the U.S., we just launched into Amazon across North America, and we’re working on a plan to execute distribution in the U.K. in 2026,” Rhymes said.  He points out that the company has already transformed from an in-house manufacturer to an operation that outsources manufacturing and distribution.  “Everything has to scale up. Does manufacturing stay in Canada, or does it go abroad as our market grows? There are plenty of questions, so we’re building out a comprehensive plan to optimize what is already a complex supply chain. I’m confident we have all the right people in place.” For Marla Boehr, who leads Bathorium’s marketing and creative team, it will be about expanding into B2C relationships. 

“The opportunities in the B2C sector are incredible, so we hired MVM (Magic vs. Machine) to run our Meta ads and we’ve already seen huge growth,” Boehr said. “We want to build on that and continue to break open the U.S. market. It’s so big and competitive, but the possibilities are incredible in the B2C sector.”  Boehr says the company’s core demographic is women over the age of 30 seeking a luxurious spa experience in the comfort of their homes at an affordable price point. Men, too, are learning to enjoy a good soak, including her 10-year-old son, who she says loves Bathorium’s Kids Little Charlie product line.  Meanwhile, Macdonald is keeping his eyes on the bottom line.  “We have to increase our purchasing power with cash flow to get our (cost of goods) down without sacrificing quality in super competitive markets like the U.S.,” Macdonald said.  He believes the biggest challenge will be finding the right people in the right markets to tell the Bathorium story. Plus, the incoming U.S. administration appears enthusiastic about import tariffs and it is uncertain if Canada will be exempt. The impact on exchange rates for promotional expenses and product pricing is another big unknown, Macdonald said.  Still, he’s convinced his team has the answers.  “We’ll be rolling out more digital ads, getting deeper with our segmentation. More field training groups to increase acquisition. More demos in places like Whole Foods. We build on our high-profile partnerships like Gwyneth Paltrow’s goop to become its top bath brand.”  In the end, Macdonald feels that Bathorium is in the right place at the right time to meet an ever-increasing demand for small luxury products within its refined market niche.  “We’ve been gaining momentum with people like me who love taking a bath but settle for mediocre products and limited options. Companies may toss in a balm or scented oils, but there is not enough money in bath products as a sideline; there’s way more in body and skin care,” Macdonald said.  “Bathorium is the first brand to focus exclusively on bath products. Our mission is to help our customers make the art of extraordinary bath rituals a part of their daily beauty, skincare and body routine.”