|
Toys in the News: 7-31-08 Click Here for Current News Holiday Price Hikes Encourage Early Buying. July 31, 2008 – Christmas decorations, handbags, food and apparel are likely to face prices hikes of up to 15 percent for the holiday season, so savvy consumers might consider tackling shopping a little earlier this year, the Associated Press reported. Toy prices are expected to be about 10 percent higher than they were for the 2007 holidays. Scrabulous Spells No More. July 30, 2008 – The creators behind the popular Scrabble-like game on Facebook have complied with Hasbro's request to disable the Scrabulous application for online users in the United States and Canada. After releasing a legitimate version of Scrabble on the social networking site this month, Hasbro filed suit against RJ Softwares, and brothers Rajat and Jayant Agarwalla of India, for creating the Scrabulous game, Reuters reported. Earthentree Recalls Wooden Toys. July 29, 2008 – The U.S. Consumer Product Safety Commission, in cooperation with Earthentree, has announced a voluntary recall of about 375 wooden toys, including maracas, pull toys, rattles and trains due to small parts that may break off and pose a choking hazard and string that is longer than 12" and could present a strangulation hazard. Additionally, the rattles do not meet requirements of the federal rattle standard. Manufactured in India, the products were sold online, at trade shows and at stores nationwide from December 2007 through May 2008. Congress Ends Debate on Toy Safety Law. July 29, 2008 – President George W. Bush is expected to sign into law this week a bill that would increase the budget for the U.S. Consumer Product Safety Commission, significantly decrease the allowable amount of lead in products for children 12 and under, ban six chemicals used in the manufacture of plastics, heighten fines for safety violations, require toy manufacturers to put their products through rigorous safety tests, and establish a database that allows the public to file product safety concerns. The law would also give states freedom to implement their own, tougher safety standards that could trump federal requirements, the Chicago Tribune reported. The lead standard for toys and other children's products would limit content to 600 parts per million within 180 days, 300 ppm after 12 months, and 100 ppm within three years. ![]() Juror Booted from Bratz Trial. July 25, 2008 – A female juror in the Mattel vs. MGA Entertainment case over Bratz was dismissed from the trial Friday after a fellow juror brought up "inappropriate remarks" the woman made against MGA's CEO Isaac Larian regarding his Middle Eastern heritage, Reuters reported. MGA is consequently seeking a mistrial — a matter that U.S. District Judge Stephen Larson will address in a hearing on Aug. 4. ![]() ![]() ![]() U.S. Weighs Phthalate Ban. July 24, 2008 – A congressional committee headed by Rep. John Dingell, D-Mich., is in the process of reviewing House and Senate versions of a bill that would implement a nationwide ban on phthalates in children's toys. Some are concerned that ExxonMobil's lobbying will affect the policy, but a company representative contends that the phthalate DINP manufactured by ExxonMobil has been deemed safe in various studies, MotorCityMoms.com reported. The Toy Industry Association also points to studies that have shown DINP to be safe for use in children's products. ![]() Mattel Could Claim $1.6B for Bratz. July 23, 2008 – Court documents reveal that an expert witness in the Mattel vs. MGA Entertainment case may testify that MGA and the designer of Bratz, Carter Bryant, owe Mattel a collective $1.6 billion in lost profits and additional damages, the Associated Press reported. MGA requested last week that such testimony be blocked. Jakks Pacific Reports Sales Growth in 2Q. July 23, 2008 – Net sales for Jakks Pacific were higher during the second quarter and first half of 2008 compared with the same time periods in 2007, although income was comparatively lower, according to a press release. Net income for the first six months of the year came in at $5 million, falling $3.3 million behind net income for the first half of 2007. Net sales for January through June of this year were $276.2 million, versus $253.6 million last year. Hannah Montana, EyeClops, and Plug It In & Play products are expected to fuel the company's success this year. Graphic Novels Jump, Comics Fall. July 22, 2008 – While comic sales saw a 3-percent decline in June, sales of graphic novels jumped by 25 percent, ICV2.com reported. Sales of the novels in the second quarter, however, still fell 1 percent, due to a 17- and 7-percent falls in May and April, respectively. ![]() Webkinz Faces $5 Million Suit. July 21, 2008 – Dick Padelford of Freetown, Mass., confirmed that his legal representatives filed a class action suit on behalf of his corporation, Cortes Country Stores, Inc. d/b/a Freetown Trading Post, and all others similarly situated, against Ganz, manufacturer of Webkinz, in the United States District Court, District of Massachussetts, on July 11, 2008. They are charging Ganz with acts, conducts and practices that are unlawful under Section 1 of the Sherman Act and Section 3 of the Clayton Act, and which "constitute a breach of contract." A call from fellow reporter Jay Pateakos of the Herald News in Fall River, Mass., on July 21 tipped off TDmonthly to the suit. Padelford's attorney, Andrew Garcia, is planning to file a companion case in Illinois and welcomes other retailers to contact his firm. See below for info on the Nuts for Candy v. Ganz lawsuit and read our articles and Forum to learn about both sides of the Ganz saga. You may also read the entire Complaint, including attorney contact info on the Forums. The suit is open to "All retailer-customers of GANZ or retailers who established an account with GANZ in the United States from April 1, 2005 to the present that ordered Webkinz from GANZ on the condition that they also order products from GANZ's line of core-product." Hasbro Reports High 2Q Profit. July 21, 2008 – Hasbro second-quarter net profit exceeded an estimated 22 cents per share, climbing to 25 cents a share, or $37.5 million, due in part to sales of "Indiana Jones" toys and other action figure licenses. Sales increased 11 percent in the United States and Canada, and saw 15 percent growth internationally, Reuters reported. Second-quarter profit was at only $4.8 million in 2007 because of a charge for buying back Lucasfilm warrants. Hasbro Announces Price Hikes. July 21, 2008 – Come September Hasbro will raise the prices of its toys, somewhere in the mid-single-digit range, according to Reuters. Mattel Sales Up 11 Percent in Second Quarter. July 18, 2008 – One day after a jury ruled that MGA's monster hit Bratz dolls were created while their designer was still in the employ of Mattel, the toy giant announced an 11 percent increase in worldwide net sales in the second quarter of 2008. According to a press release, Mattel's domestic gross sales grew 3 percent and international gross sales increased 15 percent. Worldwide gross sales for core brands were: Barbie® down 6 percent; Hot Wheels® up 5 percent; Core Fisher-Price® up 10 percent and American Girl® brands up 10 percent. Gross margin improved 30 basis points of net sales, SG&A increased by 150 basis points of net sales and operating income was $30.6 million compared to operating income of $36.8 million in the second quarter of 2007. Earnings per share were $0.03 vs. $0.06 in 2007. Dark Knight Garners Glowing Reviews. July 18, 2008 – Director Christopher Nolan's deeper, darker, morally complex Batman movie has moved critics from New York to Seattle. Look for related toys to move, too. Uberstix Hires VP of Business Development. July 18, 2008 – The creative construction toy company, UberStix, has hired Jennifer Biondi as vice president of business development to "build, drive, lead and manage Uberstix product and marketing efforts," according to a press release. "There is a great deal of passion in this company to put UberStix into the hands of every child on the planet," said Biondi. "It's not such an unrealistic goal when you consider that even a few UberStix parts can make numerous creations, especially in combination with other major build systems as well as recycled household items. We like to call it 'upcycling' – turning things we usually consider trash into something of greater use and value." BIondi has a broad spectrum of business-related experience, having worked at Cisco Systems, Galoob Toys, Bells Sports, and Slime. Mattel Beats Bratz. July 17, 2008 – Mattel delivered a knockout punch to MGA today when a 10-person jury unanimously decided that the majority of Bratz design drawings, prototypes and sculpts were created by doll designer Carter Bryant while he was employed by Mattel. The jury also determined that MGA and its CEO, Isaac Larian, "intentionally interfered with the contractual duties owed by Bryant to Mattel; aided and abetted Bryant's breach of his duty of loyalty; aided and abetted Bryant's breach of the fiduciary duties he owed to Mattel; and converted Mattel property for their own use." The next phase of the trial will determine if Bratz dolls infringe on the drawings and sculpts now owned by Mattel and will determine the amount of any possible damages. Mattel had reached a separate settlement in May with designer Carter Bryant, who is no longer a defendant in the case. Reborn Baby Doll Makers Go Underground. July 17, 2008 – A Reuters report on public reaction to "reborn" baby dolls – lifelike silicone, handpainted dolls that are sometimes outfitted with heartbeat and breathing mechanisms – found that the wo ![]() Boy With Toy Radar Gun Slows Speeders. July 17, 2008 – Dressed in a reflective vest and bicycle helmet, 11-year-old Lanburn Wilburn points his Hot Wheels toy radar gun at cars in his Stone Lakes subdivision in Louisville, Ky., recording their actual driving speeds. According to the Associated Press, the boy took up his present position after shouting at the cars failed to slow them down. One neighbor claims that cars now put on the brakes when they spot the boy. Like Wilburn, his neighbors are angered by cars that zoom through 25-mph zones at speeds up to 55 mph. Officials say the city will pay for half the cost of installing speed bumps in the subdivision if 70 percent of residents agree. G.I. Joe's Creator Pushes Bible Action Figures Mainstream. July 16, 2008 – Don Levine, 80, invented the action figure G.I.Joe 45 years ago to honor America's veterans and now he's aiming to turn another set of action figures into mainstream hits. His Almighty Heroes, which includes characters such as King David and Samson, have been hot sellers at Christian bookstores, reported UPI. Levine, who is Jewish, has good reason for pushing into this niche market: there are approximately 2 billion Christians in the world. He says he's already working on his first order for Wal-Mart and has deals in process with "Target, Walgreens and others." Background TV Can Disrupt Playtime. July 16, 2008 – A recent study of 50 children playing individually in a room with toys — half of the time with no TV, the other half with "Jeopardy" on — showed that having a television program running, even if a child is not directly watching it, can reduce focused playtime, USA Today reported. The research revealed that kids played with any given toy about twice as long when the TV was not on; on average, they spent a minute with a toy without TV, and only 30 seconds with a toy when the TV was on. ![]() NRF Lobbies on Toy Legislation in 1Q. July 14, 2008 – The National Retail Federation spent $480,000 during the first quarter to lobby on issues of health care, prescription drug prices and credit care immunity as well as legislation that would overhaul the U.S. Consumer Product Safety Commission and set new toy safety standards. ![]() Companies Settle Mini Helicopter Case. July 14, 2008 – Spin Master and Silverlit Toys have settled the lawsuit over the Air Hog Havoc Heli and Thunder Wolf mini helicopters against Westminster Inc. and KB Toys under the following terms: Neither Westminster nor KB Toys will challenge the Patents-in-Suit that apply to Spin Master's Air Hog, and neither party will make or sell the Thunder Wolf helicopters. Westminster has paid Spin Master and Silverlit per the agreement, according to a press release. Chinese Workers Suffer for Sesame Street's Ernie. July 14, 2008 – The National Labor Committee is putting out a 30-page report called "Nightmare on Sesame Street," detailing labor violations at Kai Da Toy factory in Shenzhen, China, where even children and teens work more than 100 hours per week and are paid only $36.55 for 89 hours of work. Workers must endure a mice-infested cafeteria and dorms without toilets or water, according to a press release. The Ernie toy, manufactured by K'NEX and distributed by Hasbro, launches in the United States and Europe this week. ![]() Webkinz Sued Again. July 10, 2008 – Nuts for Candy filed an antitrust suit against Ganz Inc. and Ganz USA LLC on June 9, 2008, in the California Northern District Court. Retailers have been threatening lawsuits against the company on TDmonthly Forums since May 2007. Nuts for Candy's owners stand in line behind at least two other retailers that are suing Ganz: Brain Station/Tree Town Toys and Shopping Therapy/Collector’s Club, as reported by TDmonthly back in December 2007. Specialty retailers became angry with the company after its Webkinz online plush, first sold as a specialty-only item, exploded into the mainstream during the Holidays 2006. Storeowners reported to TDmonthly that Ganz sales reps required them to buy product they didn't want in order to obtain the coveted Webkinz. Ganz has denied any strongarm tactics, claiming that the company was simply unprepared for the toy's popularity and could not meet demand. ![]() ![]() ![]() ![]() Aussie Retailers Start Christmas in July. July 9, 2008 – In an effort to encourage toy buying months before the holiday season nears, toy retailers in Australia are pushing big sales this month, with Target, Kmart and Toys "R" slashing prices by up to 50 percent, Inside Retailing Online reported. See TDmonthly's August issue to find out how and when the majority of specialty toy-store owners in the U.S. hold their sales each year. ![]() ![]() ![]() Chinese Prices Make for Expensive Toys in UK. July 7, 2008 – For the first time in over two decades, retail stores in the UK are facing mid-year price hikes from toy manufacturers whose products are made in China, according to Chairman Gary Grant of the Toy Retailers Association. The Independent reported that Grant said retail prices are being marked up by as much as 10 percent. ![]() ![]() Celebrity Tots Carry Corolle. July 3, 2008 – Paparazzi have spotted baby dolls from one of the best-selling specialty brands in the arms of celebrity toddlers Shiloh Jolie-Pitt and Violet Affleck. Shiloh toted Corolle’s Bébé Chéri (also a hit with Suri Cruise) around Cannes, and Violet prefers cuddling up to Bébé Charmeur at home in Los Angeles. ![]() ![]() Head of Mattel Testifies at Trial. July 2, 2008 – CEO Bob Eckert of Mattel Inc. testified Tuesday for the lawsuit against MGA Entertainment's Bratz dolls that he believes it is OK to recruit executives from competing toymakers, Reuters reported. Eckert admitted, for example, he has interviewed a Disney employee for an executive position at Mattel. Eckert will give further testimony Wednesday, as the case over which company has rights to Bratz continues. Read more about the trial here. Toy Retailers Launch Online Fulfillment Biz. July 2, 2008 – Hans and Tricia Masing of Station Enterprises in Ann Arbor, Mich., recently launched Dragonfly Depot, a business created to help specialty toy stores with online sales through website design and order fulfillment services. The couple has a 10,000-sq.-ft. warehouse for merchandise and also owns brick-and-mortar toy store Tree Town Toys as well as Brain Station online, according to Ann Arbor Business Review. ![]() ![]() Enesco Buys GUND. July 1, 2008 – After 110 years, family-owned plush manufacturer GUND has sold its worldwide assets to Enesco LLC, a company that specializes in gifts and home and garden décor, and encompasses other brands such as Our Name is Mud and The Boyds Collection. GUND products are currently sold in more than 15,000 retail locations, according to a press release. Mattel's 1Q Lobbying Exceeds $200,000. June 30, 2008 – During the first quarter of the year, Toymaker Mattel Inc. shelled out $210,000 to lobby the U.S. government on the CPSC Reform Act and currency and trade issues related to China, the Associated Press reported. ![]() ASTRA Show Sees Remarkable Growth. June 30, 2008 – The American Specialty Toy Retailing Association's annual Marketplace & Academy attracted more traffic this year than ever before, seeing a 300-percent increase in buyer attendance over 2006, with 557 retailers representing more than 250 stores. The exhibition, held at Foxwoods Resort & Casino in Mashantucket, Conn., June 22-25, also logged a 150-percent booth increase. "Over 1,100 people were in attendance, making this event the largest gathering of the specialty industry in the country," President Kathleen McHugh of ASTRA told TDmonthly. |
|