Vermont Teddy Bear Company
| File:Vermontteadybear.png | |
| Company type | Privately held company |
|---|---|
| Industry | Manufacturing, retail |
| Founded | 1983 |
| Headquarters | Shelburne, Vermont |
| Products | Teddy bears |
| Parent | The Vermont Flannel Company |
| Subsidiaries | Current PajamaGram PajamaJeans Addison Meadow Former Calyx & Corolla Gift Bag Boutique TastyGram |
| Website | Vermont Teddy Bear Company |
The Vermont Teddy Bear Company (VTB) stands as a premier manufacturer of teddy bears and ranks as the foremost mail-order and online retailer in this category. Producing close to half a million bears each year by hand, VTB was once publicly listed on NASDAQ under the symbol BEAR until its 2005 privatization by The Mustang Group, a Boston-based private equity firm, aimed at circumventing Sarbanes-Oxley regulatory demands. On April 8, 2024, ownership transferred to The Vermont Flannel Company, broadening its gift and apparel brand offerings.
History
Established in 1981 by John Sortino in Burlington, Vermont, VTB was a pioneer in the mail-order teddy bear market through its innovative "Bear-Gram" initiative—offering personalized bears delivered in distinctive packaging. By 1995, the firm adopted socially responsible promotional efforts, including sponsoring gun-for-bear exchange programs along the U.S. East Coast and extending these initiatives to the West Coast by 1996.
In 1997, VTB initiated legal action against Disney for copyright infringement concerning their "Pooh-Grams," defending its proprietary mail-order branding.
Growth included strategic acquisitions and subsidiary launches: purchasing luxury florist Calyx & Corolla in 2003 (later sold), introducing Gift Bag Boutique in 2005 specializing in handbags and accessories, and managing PajamaGram (pajama gifts) alongside TastyGram (gourmet food presents). Both Gift Bag Boutique and TastyGram discontinued operations by mid-2008. These expansions diversified VTB’s presence within the gift sector.
Controversy
In 2005, the company encountered criticism over its "Crazy for You" Bear, which was dressed in a white straitjacket adorned with a red heart and came with a "Commitment Papers" tag. Despite objections from mental health advocates, the item quickly sold out. Subsequently, Elizabeth Robert, then leading the company, stepped down from the board of Fletcher Allen Health Care, Vermont's largest hospital. Later that year, VTB accepted a $6.50-per-share buyout offer from an investment group led by The Mustang Group.
Factory and Retail Store
Since relocating in 1995, Vermont Teddy Bear’s main facility has been situated in Shelburne within Vermont’s Champlain Valley. The Newport branch factory ceased operations in June 2010. The Shelburne location serves as a significant tourist destination, attracting over 50,000 visitors annually who participate in tours and hands-on activities.
The interactive "Make a Friend for Life" experience allows customers to personalize bears by choosing fur types, stuffing options, and accessories before staff complete assembly and provide an official "birth certificate." Introduced in 2017, the Vermont Cub Project distributes complimentary bears to four-year-old residents of Vermont as part of community outreach efforts.
Product Lines
Vermont Teddy Bear features a collection exceeding 300 items, with the 15-inch Honey-colored Jointed Bears serving as the centerpiece of their assortment. Additional fur shades include Buttercream, Vanilla, Black Licorice, Gray, Pink, Maple, Espresso, and Snow. Beyond bears, the company offers a variety of themed apparel for different celebrations and has diversified its lineup to include other creatures such as sloths, monkeys, and dragons.
The company’s approach centers on delivering superior product quality and fostering customer loyalty by providing a 100% unconditional lifetime guarantee. Customers can have their bears repaired free of charge at the Bear Hospital or receive replacements if repairs are not feasible.
Moreover, Vermont Teddy Bear introduces limited edition bears produced in very small runs—usually between 35 and 50 units—adding an element of rarity and exclusivity to their offerings.
Advertising
In 2010, Vermont Teddy Bear broadened its promotional activities by increasing its presence on talk radio platforms, aiming to reach a wide spectrum of direct marketing audiences. This strategic expansion was designed to boost brand recognition and support growth through varied advertising channels.