Sprig Toys powers through tough industry hurdles

FORT COLLINS – There is more than just fun and games going on at Sprig Toys.

Probably the least techie of the Fort Collins Innovation Center companies, Sprig is already stacking up successes of most early-stage companies’ dreams. Since the start of the year, the company has landed venture funding, signed distributors, won recognition and made a huge debut at the International Toy Fair in New York City in February.

Sprig is about to launch its first line into the $44 billion worldwide toy market with environmentally friendly, kid-safe products. In August, retailers will have Sprig’s Adventure Series on shelves. The company has received many orders already, including from a number of local retailers such as Dandelion Toys and Jax Outdoor Gear.

SPONSORED CONTENT

People Powered: Preparing Longmont Businesses for Economic Success

Longmont Chamber and FNBO present People Powered on April 24, 2024, aiming to inform business owners about workforce development, housing, and transportation issues.

The toys are made of Sprigwood, a patented material made from recycled plastics and biomaterials such as wood and rice husks, and are all paint- and battery-free. The initial line includes a large Adventure Rig – about the size of a Tonka dump truck – with a removable push handle; a smaller Baja Scout Sidekick; and a searchlight-bedecked gender-neutral character. When the character is inserted in the vehicle a safari adventure begins to play, complete with sounds and lights, powered by a capacitor that charges when the toys are played with, or, in Sprig’s words, kid-power.

And while the staff is still eagerly awaiting consumer reaction to the product, it has already received validation within its highly competitive industry.

Stopping traffic at toy fair

The International Toy Fair is the toy industry event of the year. The staff admitted to being nervous in the moments before the fair opened. Craig Storey likened it to the anticipation ahead of the running of the bulls in Pamplona. He detailed the opening of the event in his blog:

“After about a minute and a half of anxious looks back and forth at our booth, we watched as a herd of buyers briskly rounded the corner. To our great relief, they all slowed, looked and stopped.”

 And they stayed.

“We were so busy that we didn’t even leave the booth,” co-founder Justin Discoe said. “It’s great validation.”

Co-founder David Bower admitted to going into the fair feeling somewhat cynical. He’d been to these events before and seen products dismissed without so much as a second glance. But the enthusiasm that Sprig received quickly changed his mood.

“It wasn’t like pitching,” he said of his sales efforts. “People were genuinely interested in the product.”

Top marks from industry watchers

As a result of the fair, the company received top marks from industry watchers. Sprig was named Toy of the Day during the four-day event and was featured by Playthings magazine. For Storey, the biggest validation was when the president of a “very large” toy retailer told him that even without being made of repurposed material and battery-free, the product is great.

The company also grabbed the attention of Stephanie Oppenheim, co-creator of the Oppenheim Toy Portfolio, which tests and approves toys.

“Their commitment as a new company to making eco-friendly choices intrigued us,” Oppenheim wrote in an e-mail interview with the Business Report. “Using repurposed materials along with cutting-edge technology really reflects what we hope will be a new generation of innovative toy makers.”

Oppenheim said that many companies are entering the “green” market, but not many companies seem as committed as Sprig to making environmentally sound choices in design and execution. The company is using 100 percent recycled material in its packaging, removable electronic components so that toys can be recycled and strategically placed distribution centers to reduce the environmental impact of shipping.

“There is a big green movement in toyland but that doesn’t always mean the same thing,” she said. “Barbie is wearing a T-shirt that says ‘think pink, live green.’ That’s great, but we’re also interested in companies that are using repurposed materials like Sprig.”

Oppenheim said that her group does not test prototypes but is looking forward to testing Sprig’s toys when they are released.

Investor interest

Along with the validation Sprig is receiving from the industry, it is also generating a stir with investors. The company has several local angel investors and landed its second round of financing with a retail-focused venture capital firm, Brand Journey. In early April, Sprig entered into a stock purchase agreement with the firm.

The partnership not only brings funding to the company, but also brings expertise in consumer product marketing. Storey said the funding will sustain the company through this year and possibly into next year.

David Wolfe, managing director for Brand Journey, said he is very encouraged by the strides Sprig has already made, especially for a small company. He points to the consumer trend toward environmentally and socially responsible products as a major driver for future growth.

“I think if you’re tracking a big trend, which they clearly are, to a certain extent you shield yourself from the complexities of the market,” he said.

The toy industry is one with several layers of complexity, including seasonality and manufacturing commitments.

“The toy business is really tough-it takes a great concept and a distribution network to help get you off the ground,” Oppenheim said.

Sprig feels it has the concept and is putting in place the distribution network. The company has tapped Corgi International to distribute its line in Europe. Corgi is one of the oldest global toy distributors and is known for its high-end die-cast vehicles. The company has put emphasis on adding green toys to its portfolio. Sprig has also settled on Stortz & Associates Inc. as its Canadian distributor

Extending line

In addition to distribution, Team Sprig has already developed a line of lower-price point, non-electronic toys for the spring season. The company plans to launch a snap-together sandbox, made of Sprigwood of course, that will be easy for parents to dismantle and set up. In line with the sandbox, the company will also release sandbox trucks – think heavy equipment.

And while the company has only scratched the surface in terms of potential for Sprigwood, the plan is to take measured steps.

“We want to make sure we’re meeting customer expectations,” Storey said. “We think there is a lot of room for expansion on the Adventure Series.”

A big part of Sprig’s commitment to customers is extended play value. New characters will offer new adventures and story lines, online games and downloadable adventures and songs.

Commitment to customers goes beyond Sprig’s products. The company’s founders are focused on making a change in the industry. They hope that Sprig will meet with enough success to become a model for the industry.

“It would be great if in five years, all toys were made out of recycled product,” Storey said.