Vermont Teddy Bear Company
Encyclopedia
The Vermont Teddy Bear Company is one of the largest producers of teddy bear
s and the largest seller of teddy bears by mail order
and Internet
. The company handcrafts each of its teddy bears and produces almost 500,000 teddy bears each year. The company was formerly traded on the NASDAQ
stock exchange under the ticker symbol BEAR, but was taken private by The Mustang Group, a Boston
-based private equity
firm, on September 30, 2005, partially to avoid the reporting requirements of the Sarbanes-Oxley Act
.
The company was founded in 1981 by John Sortino, who sold handcrafted teddy bears in an open-air market in Burlington
, Vermont
. Sortino happened upon the idea of packaging and selling bears through the mail when a tourist visiting Burlington wanted a bear mailed to her home. The concept was called the "Bear-Gram", which features the customized teddy bear placed in a box (complete with an "air hole") and stuffed with other goodies.
By 1995, the company moved into its new headquarters in Vermont
's Champlain Valley
. The company has two factories: one in Shelburne
and one in Newport
. The Shelburne factory is an especially popular tourist destination, and also served as a concert site for the annual Vermont Mozart Festival
. The company also maintained two retail locations in Vermont - Shelburne and on the main road between Waterbury
and Stowe
.
VTB acquired Calyx & Corolla, an upscale flower company headquartered in Vero Beach, Florida
in 2003. Ironically, one of Vermont Teddy Bear's marketing slogans claimed that sending a teddy bear is "a creative alternative to sending flowers." In 2005, the company launched a new sister company, Gift Bag Boutique, which offered handbags and purses along with many make-up accessories. Along with PajamaGram
, which sold gift pajamas
, and TastyGram, which offered gourmet food gifts, the creation of this sister company brought the total number of companies under the Vermont Teddy Bear umbrella to five. Gift Bag Boutique and TastyGram stopped accepting orders as of June 26, 2008.
of 2005, Vermont Teddy Bear caused widespread controversy by offering a "Crazy for You" Bear. The bear was offered dressed in a white strait jacket with a red heart embroidered onto the front of the jacket. A tag entitled "Commitment Papers" came with the bear. The tag read "Can't eat, can't sleep, my heart's racing. Diagnosis – crazy for you."
Mental health groups from all over the U.S. asked for the bear to be pulled out of production and removed from VTB's website. Many groups called for a boycott
of the company. They claimed that the bear made light of the suffering caused by severe mental illness and contributed to the stigma
that people with mental illness
often encounter.
The company's response was that there was no offense intended and it was merely a play on the phrase "I'm crazy about you." The company claimed that the bear was intended to be a light-hearted depiction of the sentiment of love.
When asked to remove the bear from their inventory, VTB responded by keeping their existing stock up for sale although they stated that they would not make any more in the future. The price of the bears from VTB was US$69.95. After the company sold out, which happened within just a few days of the story hitting the news, the eBay bids reached several hundred dollars.
Elizabeth Robert, the CEO and CFO of VTB was serving as a member of Vermont's largest hospital, Fletcher Allen Health Care
, at the time of this incident. In response to the significant controversy she resigned from the board.
in 2010, according to Dan Metter, director of talk-radio sales of Premiere Radio Networks
. Conservative radio hosts were seeing an uptick in listener numbers and advertising in the lead-up to the year's midterm elections
. Premiere is the syndicator of the top three talk-radio shows -- hosted respectively by Rush Limbaugh
, Sean Hannity
and Glenn Beck
.
Teddy bear
The teddy bear is a stuffed toy bear. They are usually stuffed with soft, white cotton and have smooth and soft fur. It is an enduring form of a stuffed animal in many countries, often serving the purpose of entertaining children. In recent times, some teddy bears have become collector's items...
s and the largest seller of teddy bears by mail order
Mail order
Mail order is a term which describes the buying of goods or services by mail delivery. The buyer places an order for the desired products with the merchant through some remote method such as through a telephone call or web site. Then, the products are delivered to the customer...
and Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
. The company handcrafts each of its teddy bears and produces almost 500,000 teddy bears each year. The company was formerly traded on the NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
stock exchange under the ticker symbol BEAR, but was taken private by The Mustang Group, a Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
-based private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm, on September 30, 2005, partially to avoid the reporting requirements of the Sarbanes-Oxley Act
Sarbanes-Oxley Act
The Sarbanes–Oxley Act of 2002 , also known as the 'Public Company Accounting Reform and Investor Protection Act' and 'Corporate and Auditing Accountability and Responsibility Act' and commonly called Sarbanes–Oxley, Sarbox or SOX, is a United States federal law enacted on July 30, 2002, which...
.
The company was founded in 1981 by John Sortino, who sold handcrafted teddy bears in an open-air market in Burlington
Burlington, Vermont
Burlington is the largest city in the U.S. state of Vermont and the shire town of Chittenden County. Burlington lies south of the U.S.-Canadian border and some south of Montreal....
, Vermont
Vermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...
. Sortino happened upon the idea of packaging and selling bears through the mail when a tourist visiting Burlington wanted a bear mailed to her home. The concept was called the "Bear-Gram", which features the customized teddy bear placed in a box (complete with an "air hole") and stuffed with other goodies.
By 1995, the company moved into its new headquarters in Vermont
Vermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...
's Champlain Valley
Champlain Valley
The Champlain Valley is a region of the United States around Lake Champlain in Vermont and New York extending slightly into Quebec, Canada as part of the St. Lawrence River drainage basin drained northward by the Richelieu River into the St...
. The company has two factories: one in Shelburne
Shelburne, Vermont
Shelburne is a town in southwestern Chittenden County, Vermont, United States, along the shores of Lake Champlain. The population was 7,144 at the 2010 census.-History:...
and one in Newport
Newport (city), Vermont
Newport is a city in and the shire town of Orleans County, Vermont, United States. As of the 2000 census, the city population was 5,005. The city contains the largest population of any government in the county, yet encompasses the smallest area....
. The Shelburne factory is an especially popular tourist destination, and also served as a concert site for the annual Vermont Mozart Festival
Vermont Mozart Festival
The Vermont Mozart Festival was a series of indoor and outdoor concerts presented annually at sites throughout the state of Vermont. The inaugural Festival of 1974 was conceived as a celebration of both the natural beauty of the state and the genius of the Festival's namesake, composer Wolfgang...
. The company also maintained two retail locations in Vermont - Shelburne and on the main road between Waterbury
Waterbury, Vermont
Waterbury is a town in Washington County in central Vermont, in the United States. It is also the name of a village within that town. The population was 4,915 at the 2000 census.-Economy:-Industry:...
and Stowe
Stowe, Vermont
Stowe is a town in Lamoille County, Vermont, United States. The population was 4,339 at the 2000 census. Tourism is a significant industry.-Geography:...
.
VTB acquired Calyx & Corolla, an upscale flower company headquartered in Vero Beach, Florida
Vero Beach, Florida
Vero Beach is a city in Indian River County, Florida, USA. According to the U.S. Census Bureau's 2006 estimates, the city had a population of 16,939. It is the county seat of Indian River County...
in 2003. Ironically, one of Vermont Teddy Bear's marketing slogans claimed that sending a teddy bear is "a creative alternative to sending flowers." In 2005, the company launched a new sister company, Gift Bag Boutique, which offered handbags and purses along with many make-up accessories. Along with PajamaGram
PajamaGram
PajamaGram is one of five companies that are under the masthead of the Vermont Teddy Bear Company.PajamaGram's business is similar to Vermont Teddy Bear in that the main gift is sent out in a decorative box with a personalized gift card. PajamaGram not only sells pajamas but also robes, slippers...
, which sold gift pajamas
Pajamas
Pajamas, also spelled pyjamas , can refer to several related types of clothing. The original paijama are loose, lightweight trousers fitted with drawstring waistbands and worn in South and West Asia by both sexes...
, and TastyGram, which offered gourmet food gifts, the creation of this sister company brought the total number of companies under the Vermont Teddy Bear umbrella to five. Gift Bag Boutique and TastyGram stopped accepting orders as of June 26, 2008.
"Crazy" Controversy
For Valentine's DayValentine's Day
Saint Valentine's Day, commonly shortened to Valentine's Day, is an annual commemoration held on February 14 celebrating love and affection between intimate companions. The day is named after one or more early Christian martyrs named Saint Valentine, and was established by Pope Gelasius I in 496...
of 2005, Vermont Teddy Bear caused widespread controversy by offering a "Crazy for You" Bear. The bear was offered dressed in a white strait jacket with a red heart embroidered onto the front of the jacket. A tag entitled "Commitment Papers" came with the bear. The tag read "Can't eat, can't sleep, my heart's racing. Diagnosis – crazy for you."
Mental health groups from all over the U.S. asked for the bear to be pulled out of production and removed from VTB's website. Many groups called for a boycott
Boycott
A boycott is an act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country as an expression of protest, usually for political reasons...
of the company. They claimed that the bear made light of the suffering caused by severe mental illness and contributed to the stigma
Social stigma
Social stigma is the severe disapproval of or discontent with a person on the grounds of characteristics that distinguish them from other members of a society.Almost all stigma is based on a person differing from social or cultural norms...
that people with mental illness
Mental illness
A mental disorder or mental illness is a psychological or behavioral pattern generally associated with subjective distress or disability that occurs in an individual, and which is not a part of normal development or culture. Such a disorder may consist of a combination of affective, behavioural,...
often encounter.
The company's response was that there was no offense intended and it was merely a play on the phrase "I'm crazy about you." The company claimed that the bear was intended to be a light-hearted depiction of the sentiment of love.
When asked to remove the bear from their inventory, VTB responded by keeping their existing stock up for sale although they stated that they would not make any more in the future. The price of the bears from VTB was US$69.95. After the company sold out, which happened within just a few days of the story hitting the news, the eBay bids reached several hundred dollars.
Elizabeth Robert, the CEO and CFO of VTB was serving as a member of Vermont's largest hospital, Fletcher Allen Health Care
Fletcher Allen Health Care
Fletcher Allen Health Care, together with its partners at the University of Vermont College of Medicine and the College of Nursing and Health Sciences, is Vermont's academic medical center. Fletcher Allen target clientele are the one million people in Vermont and northern New York...
, at the time of this incident. In response to the significant controversy she resigned from the board.
Advertising
VTB was listed amongst "'a broad range of direct marketers' pitched by the show’s hosts themselves" who were taking out more ads on talk radioTalk radio
Talk radio is a radio format containing discussion about topical issues. Most shows are regularly hosted by a single individual, and often feature interviews with a number of different guests. Talk radio typically includes an element of listener participation, usually by broadcasting live...
in 2010, according to Dan Metter, director of talk-radio sales of Premiere Radio Networks
Premiere Radio Networks
Premiere Networks is an American radio network. It is the largest syndication company in the United States based on popularity of programming...
. Conservative radio hosts were seeing an uptick in listener numbers and advertising in the lead-up to the year's midterm elections
United States elections, 2010
The 2010 United States elections were held on Tuesday, November 2, 2010. During this midterm election year, all 435 seats in the United States House of Representatives and 37 of the 100 seats in the United States Senate were contested in this election along with 38 state and territorial...
. Premiere is the syndicator of the top three talk-radio shows -- hosted respectively by Rush Limbaugh
Rush Limbaugh
Rush Hudson Limbaugh III is an American radio talk show host, conservative political commentator, and an opinion leader in American conservatism. He hosts The Rush Limbaugh Show which is aired throughout the U.S. on Premiere Radio Networks and is the highest-rated talk-radio program in the United...
, Sean Hannity
Sean Hannity
Sean Hannity is an American radio and television host, author, and conservative political commentator. He is the host of The Sean Hannity Show, a nationally syndicated talk radio show that airs throughout the United States on Premiere Radio Networks. Hannity also hosts a cable news show, Hannity,...
and Glenn Beck
Glenn Beck
Glenn Edward Lee Beck is an American conservative radio host, vlogger, author, entrepreneur, political commentator and former television host. He hosts the Glenn Beck Program, a nationally syndicated talk-radio show that airs throughout the United States on Premiere Radio Networks...
.