An image of Warren Buffett at Berkshire Hathaway Shopping Day on May 5, 2023.
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Astute business legend Warren Buffett has a crazy side, he buys companies whose products he personally likes such as Dairy Queen and See’s Candies. Now count down the plush toy phenomenon Squishmallows.
Squishmallows made it Berkshire Hathaway This year’s annual meeting in Omaha, Nebraska began with shareholders purchasing 10,000 comfort dolls in a matter of hours, including dolls based on the “Oracle of Omaha” and his longtime business partner Charlie Munger. . Berkshire inherits Squishmallow’s parent company Jazzware through acquisition of Allegheny fourth quarter of 2022,
Jazzwares founder and CEO Judd Zebarsky and president Laura Zebarsky now report to Greg Abel, Berkshire’s vice chairman for non-insurance operations and Buffett’s successor, and are in regular communication with him. The South Florida-based couple, who are lawyers turned toy-entrepreneurs, said they are excited to remain under the Berkshire umbrella and enjoy the autonomy of running their own business.
“It’s an amazing structure. We’re thrilled to be a part of it,” Laura Zaberski said in an interview. “It’s better than we expected and it’s phenomenal to be with the world’s greatest leaders, and being able to explore the synergy is also something we’re interested in.”
Buffett, 92, recently praised Abel, saying he has taken on most of the responsibilities. Abel oversees a large portion of Berkshire’s vast empire, including energy, railroads and retail.
While Buffett only came to Jazzwares indirectly through Allegheny, he has shown a willingness to invest in much smaller businesses that don’t have Berkshire’s huge earnings and the ability to move the needle in terms of revenue. Buffett often praises the management of the business and expects it to continue to grow and remain profitable.
Last year alone 100 million Squishmallow units – whose prices ranged from $5 to $30 – were sold. Laura Zaberski said the pandemic has impacted Squishmallows’ growth. Support from celebrities like Kim Kardashian to Lady Gaga on TikTok also helped.
“The idea of having something that is nurturing, comforting, huggable, affordable and accessible. Instant gratification,” Zbyrski said. “We really touch all areas and sectors. So it’s really interesting to see that it’s not just kids, it’s adults. Our demographic is very wide and broad and it’s very unusual to have that in our business.”
In April 2020, Jazzwares purchased toy manufacturer Kellytoy, which created the Squishmallow brand in 2017.
Not a flash in the pan
To maintain the success of Squishmallows, Jazwares is conscious of oversaturation and is very selective about partnerships, Zabrowski said. The plush toy brand has contributed 40% of Jazwares’ entire revenue in the last two years.
“We’re in the sixth year of the brand…it’s not a big deal,” Zaberski said. “It’s growing smartly and constantly. We make sure we limit the amount of production. We make sure there’s something different for every channel of retail, there’s collectability, there’s unique styles, there’s unique sizes. “
Squishmallows recently announced a partnership with McDonald’s Happy Meals that will expand to 70 different countries by 2023.
Last month, Jazwares attended VidCon in California, an annual conference for content creators and online brands. The company featured a pit filled with a sea of Squishmallows for visitors to jump into.
“We don’t do traditional marketing. We’re where our fans are. And a great example of that is VidCon, the largest gathering of influencers,” Zbersky said.
Squishmallows is one of Jazwares’ wholly owned intellectual properties, but the company also sells products with licensed partnerships. disney And Pokemon, etc.
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