Warren Buffett’s shopping day at Berkshire Hathaway on May 5, 2023.
Li Yun | CNBC Financial Channel
Shrewd business legend Warren Buffett also has a whimsical side, buying products from his personal favorite companies like Dairy Queen and See’s Candy. Now to the stuffed toy phenomenon Squishmallows.
Squishmallows made its Berkshire Hathaway This year’s annual meeting was held for the first time in Omaha, Nebraska, and shareholders snapped up 10,000 clingy dolls in a matter of hours, including ones featuring the “Oracle of Omaha” and his longtime business partner Charlie Munger. Munger) as a model doll. Berkshire Hathaway inherited Squishmallows’ parent company, Jazwares Corporation, through the acquisition of Allegheny Corporation. Q4 2022.
Jazwares Founder and CEO Judd Zebersky and President Laura Zebersky now report to Berkshire Hathaway Vice Chairman of Non-Insurance Businesses and Buffett’s successor Greg Abel reports and communicates regularly. The South Florida couple, lawyer-turned-toy entrepreneurs, say they are happy to be under the Berkshire umbrella and enjoy the autonomy to run their own business.
“It’s an amazing structure. We’re excited to be a part of it,” Laura Zebersky said in an interview. “It’s been better than we expected, it’s been great to be with the greatest leader in the world, and it’s something we’re interested in being able to explore synergies.”
Buffett, 92, recently heaped praise on Abel, saying he shoulders most of the blame. Abel has been in charge of much of Berkshire’s sprawling empire, including energy, railroads and retail.
While Buffett has only gotten into Jazwares indirectly through Allegheny, he has shown a willingness to invest in much smaller businesses that don’t have enough leverage over Berkshire Hathaway’s massive earnings and revenues. Buffett often admires the management of businesses and expects them to continue to grow and remain profitable.
Last year alone, Squishmallow sold 100 million units, with prices ranging from $5 to $30. Laura Zebersky said the pandemic has fueled Squishmallows’ growth. TikTok endorsements by celebrities ranging from Kim Kardashian to Lady Gaga also play a role.
“The idea of having something that’s cultivated, comfortable, cute, affordable and accessible. Instant gratification,” Zebersky said. “We really touch all fields and fields. So it’s really interesting to see that it’s not just kids, but adults as well. We have a very broad demographic, which is very unusual in our industry.”
In April 2020, Jazwares acquired toymaker Kellytoy, which created the Squishmallow brand in 2017.
not a flash in the pan
To keep Squishmallows successful, Jazwares is aware of oversaturation and tends to be very picky about partnerships, Zebersky said. The plush toy brand has accounted for 40 percent of Jazwares’ total revenue over the past two years.
“We’re in our sixth year with the brand … it’s not a one-off,” Zebersky said. “It’s growing intelligently and sustainably. We make sure we limit production. We make sure that every retail channel has something different, collectible, unique styles, unique sizes.”
Squishmallows recently announced a partnership with McDonald’s Happy Meal, which will be available in 70 different countries by 2023.
Last month, Jazwares participated in VidCon, the annual event for content creators and online brands, in California. The company features a pit filled with an ocean of fudge for visitors to jump into.
“We don’t do traditional marketing. We’re where our fans are. VidCon is a great example of that, it’s the biggest gathering of influencers,” Zebersky said.
Squishmallows is one of the intellectual properties wholly owned by Jazwares, but the company also sells products through licensing partners with: disney and Pokémon
Svlook
