A bolstered direct to consumer platform, the launch of new games and toys, and an expanded presence across its key retail partners have helped Funko to strong fourth quarters results for 2020.
The pop culture specialist has reported a six per cent sales growth to $226.5 million, reflecting what CEO Brian Mariotti has described as a “better than expected performance across brands, products, channels, and geographies.”
Net sales for the firm grew in the fourth quarter 2020 from the $213.6 million in the same period the year prior. The increase is reflective of the business’ strength in its domestic market in the US, which was partially off-set by the impact of Covid-19, particularly within Europe.
Funko grew its number of active properties to 724 from 667 in the fourth quarter of 2019. On a geographical basis, net sales in the United States increased 18 per cent to $171.5 million, while net sales in Europe decreased 24 per cent to $40.3 million.
Net sales in other international regions decreased seven per cent to $14.7 million, both primarily driven by continued impacts from COVID-19.
“We are pleased to finish the year with strong fourth quarter results, including six per cent sales growth, which reflects better than expected performance across our brands, products, channels and geographies,” said Mariotti.
“Against a challenging environment in 2020, our teams were resilient, quickly adapted to the dynamic environment and remained focused on executing our strategic growth priorities. During the year, we successfully strengthened our direct-to-consumer platform, launched new games and toys that extended our reach, expanded our presence among key retail partners in mass and digital, and drove robust fan engagement through global virtual events.
“We believe the Company is strongly positioned to deliver solid top line growth and improved profitability in 2021. We are remaining focused on our strategies to maximize Funko’s core pop culture platform, drive further category diversification, expand internationally and accelerate our direct-to-consumer business.
“For the full year, we expect to achieve revenue growth of 25 per cent to 30 per cent versus 2020, which also reflects growth from pre-pandemic levels in 2019.”
On a product category basis, net sales of figures were flat at $170.2 million reflecting strength within the domestic market which was offset by international performance.
Net sales of other products increased 30 per cent to $56.3 million versus the fourth quarter of 2019, primarily reflecting strong growth in the company’s Loungefly branded products, as well as strength within our games, plush and accessory categories.
Pop! branded products grew one per cent to $169.4 million, while Loungefly branded products grew 51 per cent to $31.6 million in the quarter reflecting strength in both its wholesale and direct-to-consumer channels.
Net sales of other branded products increased five per cent to $25.5 million, reflecting a strengthening board game, toy and figure offering from the firm.
primarily reflecting strength in Funko’s expanded board game, toy and figure offerings.
“We feel confident about the trajectory of the business and believe we are well-positioned from a strategic, operational and financial perspective,” said Jennifer Fall Jung, CFO.
“We expect to continue investing for growth in 2021 while also driving strong Adjusted EBITDA margins and improvement on the bottom line.”
Zuru has lifted the lid on a new raft of unboxing experiences inspired by and based on the internet sensations, Vlad and Niki. The new Vlad & Niki Superhero Surprise range is scheduled to land at retailers from May this year.
Recognised as one of the biggest YouTube channels in the world, Vlad & Niki is ranked as the number one boys’ show and number two family show with over 65 billion views and more than 90 million subscribers across 12 languages via their 15 channels.
Capturing what Vlad and Niki have brought to pre-school audiences worldwide, the Superhero Surprise line will be available in the UK from May, delivering a Dino Attack and Robot Battle theme, a comic book adventure that sets the stage for playtime, complete with corresponding superhero costumes, vehicles, figures, and more.
“Zuru created a collection of toys that encompass Vlad and Niki’s sense of adventure, discovery, and imagination,” said Sergey Vashketov, father of the YouTube preschool superstars and co-founder of Content Media Group FZC, LLC. “Now kids everywhere can use their own creativity playing along with Vlad & Niki and their Superhero Surprise toy collections kits.”
Aneisha Vieira, global brand director of Zuru, added: “Vlad and Niki are charismatic brothers who have captivated children around the world. With Vlad & Niki Superhero Surprise, ZURU has combined the energy, magic and spirit from the series into an experience that preschoolers will wholeheartedly embrace.”
Vlad & Niki Superhero Surprise features over 20 surprises including a mask and cape, Super- Hero Vlad and Niki figurines, Baby Christian figurine, a dinosaur or robot figurine, two die-cast car, slime egg, light up skateboard, wrist snap-band, stickers, tattoo and more.
Designed for children ages three and upwards, Vlad & Niki Superhero Surprise will be available for a suggested retail price of £29.99.
The energetic videos focus on the boys’ daily life adventures, which are brought to life with special effects and animation, superhero narrative, toy testing, and catchy songs. Last year, Vlad and Niki introduced Christian – the boys’ new baby brother, who is delighting in his older brothers’ antics.
Warner Bros. Consumer Products has partnered with Toybox, a company specialised in 3D printers that allow fans to create their own toys at home, to enable audiences to print characters from across the Warner Bros. portfolio.
Marked by many as a major step forward in the ongoing development and evolution of the 3D printing space and its implications for the future of the toy industry, the new partnership will allow Toybox fans the chance to print items based on DC, Cartoon Network, Looney Tunes, Friends, even Seinfeld.
The deal also extends to classic films under the Warner Bros. banner, such as Polar Express and Elf.
Customers will be able to buy a range of toys starting with DC’s Batman, Superman and Wonder Woman by purchasing Toybox Bolts, an online currency unique to the Toybox platform. This is a first of its kind licensing agreement with a major studio that allows customers to print their toys at home.
Toys available to print at launch will be Batman, Superman and Wonder Woman action figures with nine points of articulation, Batarangs, Batman’s Batcave computer, Batmobile, Batman disc launcher, Bat-Signal, Justice League disc launchers, Daily Planet building; with additional items to follow.
Ben Baltes, CEO of Toybox, said: “We are so excited to announce this partnership with Warner Bros. Consumer Products. Toybox is the only platform to offer at home toy printing tied to a secure 3D printer. Bringing our Toybox users the world class properties from the WB catalogue is a dream for them and for us.”
Jazwares has signed a new licensing partnership with Epic Games, extending the toy company’s current Fortnite deal through to 2025 and expanding upon its range of toys and collectables.
The deal, brokered by licensing agency IMG, will start from January 2022 and will see Jazwares become the exclusive toy partner for Fortnite four-inches and under action figures and their compatible play-sets, vehicles, accessories and more.
Jazwares will also continue to produce new R/C vehicles, all of which will be compatible with its full four-inch action figure line, and plush in varying sizes. Also in 2022, fans can expect a new lineup of highly detailed two-inch action figures with multiple points of articulation and accompanying play-sets, vehicles and accessories to build out their world of Fortnite in miniature scale.
The multi-year deal extends Epic Games and Jazwares’ successful three-year partnership.
Since 2018, Jazwares and Epic Games have worked together to bring the Fortnite universe into the real world for fans in over 50 countries, launching more than 350 toys and collectibles at retail that allow fans to interact with their favorite characters and experiences from the game in a brand new way.
“These toys and collectables have opened up the action-packed world of Fortnite, adding a whole new level of detail that fans can connect to like never before,” said Laura Zebersky, president, Jazwares.
“Through the continually evolving four-inch action figure universe and now the new two-inch range, we are expanding collectability to help fans build out the world of Fortnite. We are thrilled to be bringing these new, detailed micro scales to life for the first time, and look forward to working closely with Epic Games to continue growing fans’ Fortnite collections.”
In addition to the new items being released in 2022, Jazwares has unveiled new action figures, R/C vehicles and more, set to rollout at retail through 2021.
A portfolio of strong licences and a cross-generational appeal to kid and adult audiences through the blend of physical-digital play has helped The LEGO Group to a strong year of growth over 2020, as the Danish toy maker reports a 21 per cent growth in consumer sales compared to the year prior.
LEGO Star Wars and LEGO Super Mario have been named among some of the company’s best-selling licensed ranges throughout the past year, as the group’s tie-up with the Nintendo property and its innovative lean into the mix of physical and digital play, become one of its best-selling themed sets.
LEGO Friends has also been credited with helping the group to a successful year of growth that saw revenue at the firm increase 13 per cent to DKK 43.7 billion, despite the challenges posed by the pandemic.
LEGO’s CEO has attributed the success to the ‘passion, creativity, and resilience’ of its team who has “worked tirelessly to keep the world playing” over the course of the challenging year.
As a result, LEGO has seen operating profit hit DKK 12.9 billion, an increase of 19 per cent compared to the year prior, while the brand’s global market share grew both across the world and in its largest 12 markets.
Consumer sales in all market groups grew double digits, with especially strong growth in China, the Americas, Western Europe and Asia Pacific.
Growth in operating profit was driven by strong sales and offset by strategic investments and increased distribution costs associated with shipping products globally following the temporary, enforced closure of manufacturing sites in Mexico and China. Net profit grew 19 percent to DKK 9.9 billion, while free cash flow was strong at DKK 11.5 billion.
CEO Niels B Christiansen said: “For the past two years we’ve made large-scale investments in initiatives designed to support long-term growth. In 2020, we began to see the benefits of these, especially in e-commerce and product innovation.
“We know children and adults love the LEGO brick and that will always be the heart of our business. But today’s children are growing up in a digital world and they effortlessly blend online and physical play.
“We are excited to offer them safe, exciting play experiences that are fun and offer new ways to learn and be creative.”
The LEGO Group also continued to invest in its brand through its global brand campaign Rebuild the World and in 2020 was named the world’s most loved brand.
On top of this, the company’s omnichannel retail system has supported growth in its partners’ and its own channels as physical stores were forced to temporarily close to prevent the spread of COVID-19.
The number of visits to LEGO.com doubled compared with the prior year, while the company continued its global store expansion programme. During 2020, it opened 134 new retail stores, including 91 stores in China, bringing the total number of LEGO branded stores globally at the end of 2020 to 678.
The company plans to open a further 120 stores in 2021, 80 of those in China.
“People are looking for unique and memorable physical brand experiences, so we will continue to invest to expand our global retail footprint, as well as elevate our instore shopping experiences,” continued Christiansen.
“This approach strengthens our brand, creating a positive impact across all channels. We will also further build our e-commerce capabilities to support online shopping on our own and our partners’ platforms.”
The LEGO Group concluded its financial report with an update on its initiative to positively impact on the future of play. Last year, the firm detailed that up to $400 million will be invested over three years in sustainability initiatives, focusing on learning through play, reducing its environmental impact, and ensuring inclusive workplaces.
The company has begun trials of paper bags to replace single-use plastic packaging in its products and announced a commitment to reducing its absolute carbon emissions by 37 per cent by 2032.
During the year, it also partnered with a range of organisations to support its efforts and will work with UN Women to empower women in all of its workplaces, as well as the Ellen MacArthur Foundation to explore circular business models.
Christiansen concluded: “The challenges facing this generation of children are urgent and complex and must be addressed through a collective effort by companies, governments and experts.
“We look forward to joining forces with children, parents, colleagues and partners to help shape a bright future for generations to come.”
The global toy maker, TOMY International, has signed a new collaboration with SEGA of America to bring the characters from the Sonic the Hedgehog universe to retail via the toy firm’s popular collectable Club Mocchi-Mocchi line.
Developed under TOMY’s Micchi-Mocchi brand, the officially licensed range will include super soft, squeezable, and huggable plush versions of characters from the Sonic universe. The range is expected to bow ahead of the arrival of the sequel to the hit blockbuster Sonic the Hedgehog movie and a new Netflix Originals animated series, Sonic Prime, next year.
Sonic the Hedgehog burst onto the gaming scene on June 23, 1991 with the release of Sonic the Hedgehog on the classic Sega Genesis, and quickly became known for his super-fast speed, signature attitude and readiness for all types of adventure. Since his debut, Sonic the Hedgehog has become a prominent figure in pop culture that has captivated fans around the world with an expansive franchise of iconic video games, comics, TV series and more.
“Sonic is an all-time classic video game character that has evolved into a beloved lifestyle brand and we are thrilled to bring these amazing characters to fans and collectors around the world through our unique Club Mocchi- Mocchi- brand,” said TOMY’s director of global brands, Morgan Weyl.
“The signature look and feel of our Club Mocchi- Mocchi- items will even turn Sonic’s quills in the most huggable quills ever.”
Michael Cisneros, manager of licensing at SEGA of America, added: “TOMY has a long-standing reputation for high-quality plush toys not only in the industry but is well revered with Sonic collectors as well. We’re thrilled to re-partner with them to create this unique line for Sonic the Hedgehog.
“Fans have embraced Sonic in so many different mediums, and these super-soft, Club Mocchi-Mocchi- plushies will be ones they can hug and cherish for years to come.”
The park is pretty empty when Barry Hughes, managing director of Golden Bear, logs on to catch up with Australian colleague at 7am. An early start to marry-up the time zones means that they have the place to themselves, before the next slew of visitors start populating their allocated slots.
With just a few clicks, Hughes can navigate the park’s greenery, cross the river, and showcase an entire portfolio of Hey Duggee toys in a room buried in a bristling bush. It all sounds a bit Mary Poppins, doesn’t it? It’s not; it’s simply what Toy Fair season looks like in the midst of the 2021 pandemic.
This is Golden Bear’s virtual toy fair platform, a digitally constructed journey through a colourful park area, populated with break-out rooms featuring the firm’s latest toy products. It’s from here the company can showcase its wares to a global network of customers, any time of the day, every day of the year. This isn’t just toy fair season, this is Golden Bear’s latest phase of international expansion.
By 8pm that same day, Hughes is guiding customers from California around the same platform. While the pandemic has wrapped its fingers around the usual annual travel to Spielwarenmesse, New York, and London’s Olympia this year, Golden Bear’s ability to network with its international customer base is by no means diminished.
But then, ask Hughes how Golden Bear has managed to find such success over the course of 2020 and he’ll tell you that this is a company that has managed to stay ahead of the curve for some time now. The team was among the first to spot the en masse shift to online retail and click and collect before the pandemic rendered it a necessity, and as such was a team well positioned to adapt to the changes that have swept the landscape in the past year.
Meanwhile, it’s not enough that Golden Bear already held the toy rights for some of the country’s best-loved pre-school IP, including Bing and Hey Duggee, but combine this with a diversification of product that has successfully taken the company into the outdoor sector, as well as the Escape Room trend of the gaming space, and the winning formula that Golden Bear possesses begins to shift into view.
Barry Hughes, Golden Bear managing director
“Obviously the bedrock of what we do is pre-school licenses, and our pre-school licenses on the whole did well,” Hughes tells ToyNews. “They benefited from kids being locked down at home; programmes like Hey Duggee were suddenly being watched by parents who might not have seen it otherwise, so that IP did particularly well.
“But where I like to think we have been ahead of the game compared to a lot of competitors is with regards to our online insights and supporting our retailers with their online sales assets. In the shift to online, we were ahead of the curve.”
Over the past year, Golden Bear has strengthened its team in the online operations space, built its own in-house photo studio in order to create image and video assets quickly, and has by and large, been ‘geared up for the digital switch’ long in advance, a presiding factor that has in recent years, won the company its expanding trophy cabinet of industry awards.
Not only that, but it is Golden Bear’s portfolio – a carefully curated clustering of high calibre properties and products – that has played directly into the strengths of the toy industry this past 12 months. This is a company that found its niche in both the outdoor market and gaming market right at the right time; just before the pandemic’s social restrictions thrust the sectors directly into the consumer’s consciousness.
“The Smart Ball Football and the Speed Ball Football came about through insights. Our USP is that we put a lot of stock into our insights,” says Hughes. “We are investing more into that area now, and with being a smaller company we can be more agile, which is a good combination for the toy industry.
“We had identified a gap in football gifts. My son, who was eight at the time and mad on football, got a load of football Guess Who? Games for his birthday. We quickly realised that the footballers were out of date, retired, or at the wrong clubs.
“But at the same time, we’d spotted a surge in searches for football gifts across various age profiles. We felt the need to fill the gap in the market, and now we have a host of new things coming in development for that range, too.”
Golden Bear’s new digital touring platform doesn’t just go the lengths to showcase what this product looks like this year, while doing its best to ‘put the product in the hands of customers,’ without them being in the same country, let alone room, but also to showcase who Golden Bear is; a digital home of the company’s recent re-invention.
The firm kicked off the year with the unveiling of a new logo, coupled with a new messaging that would go on to amplify Golden Bear’s image as a firm at the cutting edge of today’s trends in toys. With the launch of the company re-branding, the message was clear – this wasn’t only a company built on reliability and quality in the pre-school space, but pioneers of innovation across its key sectors – and seriously, take a look at its upcoming Hey Duggee and Bing portfolio if you want to see innovation in the pre-school sector this year – powered by its insight led business.
“The majority of our sales are in non-plush items, which tends to surprise people,” says Hughes. “We wanted to make the best of the past and combine it with the best of our future, and give it all a more modern feel.”
This even extends to the consumer message that Golden Bear promotes, and the changing sensibilities of the modern day shopper. And that includes in its approach to being a sustainably responsible toy company.
“We are a company that quietly goes about doing things and doesn’t shout about it much,” explains Hughes. “Sustainability is a good example of that. For instance, the stuffing in our plush has been made out of recycled bottles for years. We have actually now been moving our product lines to make the skins from recycled polyester, too.”
That move will be kicking off with Golden Bear’s Hey Duggee range this year. As well as that, this is a company that now confidently boasts its zero to landfill policy (one that has been in place for a number of years), as well as the installation of solar panels this year, and the switch of all company cars to hybrid and electric.
“We are liaising with licensors and retailers, and we like to think that we are right on the forefront of this movement,” continues Hughes. “We have set out our values and pillars and where we want to be as a company in three years’ time. Everything is underpinned by insights and sustainability, and we are making sure that everything we do has got sustainability and insights as its centre.”
It’s with that messaging now front and centre that Golden Bear will continue to exact its plans for global expansion. A digital platform open to customers 24 hours a day, every day of the year has helped tighten the screws on the firm’s international network, while advanced discussions are ongoing with partners in the US for some of the company’s own IP.
“It was always our plan, pre-pandemic, to grow internationally,” says Hughes. “We are just maximising that opportunity, instead of travelling to overseas fairs, to tap into our contacts via the virtual toy fair platform, and spend more quality time with people, albeit virtually.”
Via the medium, the response from global customers has been consistent; Golden Bear in on to a strong 2021. Tapping into emerging trends in the Escape Room gaming space, pushing the envelope in pre-school innovation, and making a success of the Outdoor sector in a year that will likely be recognised as the summer of the staycation once again, there’s little that Golden Bear offers that doesn’t just seem to fit.
“One of the most pleasing things that I have heard from buyers through this toy fair season is that there is a reason for every product to exist,” states Hughes. “That for me is a real testament to the team; that there has been a thought process and reason behind everything we have done.
“The end of the year was a real time to reflect for everyone. Our warehouses have remained open through the year, and the vast majority of our staff have been working from home. I am so proud of the whole team, given everything that has gone on,” he concludes.
The European hobby specialist, Bachmann Europe, has detailed a slew of new licensed releases with the launch of its Spring catalogue that includes buildable models from the classic Anderson Entertainment IP, Thunderbirds, and a new Natural History Museum range of dinosaurs.
Headlining the announcement, Bachmann has unveiled a range of Thunderbirds plastic kits produced under its Adventures in Plastic banner. Comprising 11 different kits across a number of scales, hobbyists can construct detailed models of vehicles from the original TV series.
All five Thunderbird aircraft and underwater craft feature, as well as Fireflash, The Mole, and Lady Penelope’s iconic car FAB 1.
The deal follows a slate of recent licensing activity for Thunderbirds’ IP owners, ITV Studios, who over the last month has secured an extended partnership with the streaming service BritBox to air classic Thunderbirds, a series that made its UK debut in 1965.
Prices on the new range start at £29.99 and each of the 11 kits is ready to be dispatched to Bachmann stockists from next week.
Additionally, and as part of its Spring 2021 MCC Announcements, Bachmann has partnered with the Natural History Museum to launch a licensed Dinosaur Collection.
Now available with new packaging that incorporates a fun and educational fact sheet, the range has been developed under the guidance of the Natural History Museum’s researcher, Dr Paul Barrett. The range includes eight sets to choose from and are available from Bachmann stockists now.
The two new ranges have been introduced as part of Bachmann’s first Model, Collect, Create branding announcements. A new mode of communicating its portfolio to customers, Bachmann will provide quarterly MCC updates on new plastic kits, toys, and collectables in the UK and around the world.
As with its successful 2020 British Railway Announcements, new items unveiled in the MCC Announcements are due to arrive with Bachmann stockists over the course of the next three months.
The multi-platinum recording artist, Cardi B, has launched a limited edition fashion doll in partnership with Real Women Are, a new diverse and inclusive doll brand, in timed to coincide with Women’s History Month.
Recognised as a female entrepreneur, Cardi B inspired and created the doll in her outspoken and confident likeness, partnering with the ground-breaking doll brand, Real Women Are that itself has been inspired by influential and impactful women of colour.
The new Cardi B doll was made available via an exclusive waiting list on March 5th for 72 hours. Fans and collectors who reserved the doll will be guaranteed a doll for purchase this July.
The partnership between Cardi B and Real Women Are represents a collection of firsts for the artist and the new brand. This is Cardi B’s first doll as she provided inspiration, led creative direction and was an integral part of the production process.
Meanwhile, Real Women Are is the first minority-women owned and led doll brand targeting women and girls of all ethnicities backed by the National Entertainment Collectibles Association (NECA), whose toy division was started nearly 20 years ago.
For both Cardi B and NECA, the launch of the Real Women Are brand is especially timely as Gen Z and Gen Alpha girls come of age in today’s cultural landscape that recognizes the need for diversity, inclusion and representation on an unprecedented scale.
“As everyone knows, I’m a mum. And today, more than ever, it’s important to me to give my daughter inspiration and badass women to look up to,” said Cardi B.
“Working with Real Women Are is a chance for me to provide my daughter and other little girls something that looks like them to play with to inspire them. We’re in the White House now, but we’re still so far behind in other places. Representation matters.”
Backed by toy and collectible juggernaut NECA, the Real Women Are brand is majority-owned and run by women of colour and the influential women who inspire the dolls themselves, called the Real Women Alliance. The goal of the brand and the Real Women Alliance is to provide dolls that celebrate powerful women and champion authenticity.
“What makes Real Women Are special is that young girls of color are a priority to the doll brand,” said Cardi B. “We want them to know that they are special. That they are worthy of having a toy that looks like them. We’re not building Real Women Are as an afterthought or something just to check off a box. Creating a doll that is a mirror of our daughters, nieces and granddaughters is at our very core.”
The Cardi B doll’s ensemble will be fashion-forward featuring on-trend contemporary designs. Her hair and make-up will reflect the latest in beauty trends. The doll will include additional wardrobe and accessories, which will be sold separately.
Future dolls from Real Women Are will offer dolls in various colors, shapes, sizes, and abilities.
Toikido has struck a deal with the award-winning toy brand, YuMe Toys to distribute the official Among Us branded toy range across the US, Canada, EMEA, Asia Pacific, and Japan. The range, featuring plush toys, feature plush, capsules, costumes and seasonal items will be available to trade from May this year.
The popular online multiplayer game Among Us was the most downloaded game of 2020, with half a billion users last November, according to SuperData. The game is currently available on iOS, Android, Nintendo Switch and PC, with further releases and updates planned for later this year.
“Among Us offers the perfect mix of fun, social factors, and amazing characters,” said Darran Garnham, founder and CEO, Toikido. “Toikido is passionate about giving fans what they love without compromising quality and YuMe Toys are the ideal partner to deliver this.”
Michael Kwan, CEO, YuMe Toys, added: “We’re excited to partner with Toikido to be part of the Among Us gaming phenomenon. The demand for product from the fan community can be seen through the impressive meme culture and millions of Twitch followers.
“The YuMe team have responded swiftly to the games’ popularity and we’re proud to bring this unique toy range to the fans in record time.”
The first Among Us toys from YuMe and Toikido will be available to the public at selected retailers across the US, Canada and Europe from June 2021.
