Heading Northward: Jazwares’ Canada Expansion

Canada is an important market for us. We know there is growth potential for our portfolio of brands here. Having a local team allows us to build closer relationships with retail and global licensing partners to provide them with the highest level of service and support while executing marketing strategies that resonate with consumers nationwide. Moreover, Canada has a rich pool of creative, business, and marketing talent that has been an exciting resource for us to tap into.

Jazwares officially opened its Canadian office in 2022, centrally located in Toronto, and has experienced exponential growth since. We’ve hired key roles in sales, business intelligence, inventor relations, product development, planning, and other functions to support our business. Our investment extends beyond business growth; we are also committed to supporting the community. Through Jazwares Cares, our philanthropic arm, we are dedicated to giving back to the local communities where we work and play.

Our goal is to grow and strengthen local relationships and hire world-class talent in key areas that bring us closer to our retailers with a highly tailored approach, ensuring the right product reaches the right channel and provides a closer connection to the end consumer. We aim to build stronger, authentic connections with consumers by creating fan-first experiences.

Our team is incredibly proud to have won Circana’s prestigious No. 1 Selling Toy in Canada for two consecutive years in 2022 and 2023. Our strong presence at Toronto’s Fan Expo Canada allowed us to engage with thousands of passionate Squishmallows fans, creating unique experiences for them. It was especially rewarding to hear directly from fans that we were the talk of the show. Additionally, our costumes and pets divisions are driving significant growth, and we’re excited to expand these businesses with both existing and new partners.

As a Canadian with extensive experience living and working in the U.S. before returning to Canada, I’ve seen firsthand the vast differences in our markets. Beyond obvious distinctions like currency, suggested retail prices, government, and taxes, there’s a significant contrast in how Canadians choose to spend their hard-earned money. Newer brands face more challenges here, as customers tend to gravitate toward tried and true brands and products rather than unfamiliar ones. Consequently, merchants focus on where the demand is strongest. Having managed brands in both the U.S. and Canada, I’ve always found it more difficult to achieve success in the Canadian market. With a smaller population, more compact stores, and less attractive economies of scale for global brands, competition for shelf space is intense. Yet, despite these challenges, our Jazwares Canada business is thriving.

The Canadian industry is currently experiencing a cooling-off period, amplified by high federal interest rates aimed at curbing inflation that has been unwinding slowly following years of substantial growth. I anticipate the industry as a whole will see modest growth of around 1-2% [when 2024 numbers come in]. However, as many of our retail partners have noted, Jazwares continues to have a special secret sauce when it comes to creating toys.

The excitement surrounding our brands continues to soar, even as our competitors navigate this slowdown. I have no doubt that in 2025, we will continue the momentum in Canada!