Spin Master: An Epic Toy Story
Mastering kids' entertainment for decades is no child's play.
February 28, 2020
This article originally appeared in the Feb. 2020 issue of License Global Magazine. You can read more great content from the issue here.
A Hollywood scriptwriter couldn’t dream up a more inspiring tale than the real-life story behind global children’s entertainment powerhouse Spin Master. In just roughly three decades since its inception, Spin Master is firmly poised to conquer the toy industry throne as one of the top seeds among kids’ entertainment mainstays that have dominated the space for decades.
If the past is any indication of the future, Spin Master is on pace to expand exponentially, outpacing the growth of legacy toy-industry giants and even surpassing purely-entertainment-focused companies. With a bevy of world-renowned flagship properties, nine television series, countless award-winning toy products, a behemoth licensing roster, key business acquisitions and an elite team of executives leading a host of offices across the globe – Spin Master is a study of entrepreneurship and business acumen.
Of course, the Toronto, Canada-headquartered billion-dollar public company is where it is today thanks to a series of pivotal licensing wins that any company, serving any product category, could benefit to learn from. The phenomenal story behind the company that introduced brands like “PAW Patrol,” Bakugan and Hatchimals, to name just a few, began humbly in 1994.
Planting the Seeds for Success
Soon after graduating from The University of Western Ontario, childhood friends Ronnen Harary and Anton Rabie founded Spin Master. With their own investment of $10,000, Harary and Rabie launched Spin Master’s very first product: Earth Buddy, a nylon stocking-covered head of sawdust coated with grass seeds that sprouted to emulate hair (à la Chia Pet). The duo sold the item on the street and eventually got product into specialty retailers, garnering enough success to expand their operation into a small facility in Downtown Toronto.
The next big win came in 1998, when Spin Master launched its popular Air Hogs brand, a technologically advanced, affordable product with a miniature engine and remote-control operation. The success of the product propelled Spin Master to expand into other regions.
Between 2002-2007, Spin Master grew its international footprint and opened offices in Western Europe as well as an innovation hub in Los Angeles, Calif. The growth continued as Spin Master made its first pivotal purchase– acquiring X-Concepts, the maker of Tech Deck.
And then came the birth of one of its superstar properties.
Capturing the Spotlight
In 2007, Spin Master created its most successful product up to that point – Bakugan. Beginning as a sketch of a ball that would open to reveal a character inside, Bakugan exploded into popularity, quickly becoming a hit brand among boys ages 5-10 and went on to be the subject of a global animated television series, marking Spin Master’s foray into content production. With the boys segment locked in and bringing the. company even further financial growth, Spin Master then astutely focused eff orts to target girls, creating a new property, Zoobles.
“Innovation, not only innovation in our products, entertainment and brands but also in our business approach, makes Spin Master unique,” says Juli Boylan, vice president, franchise development and outbound licensing, Spin Master. “We are constantly scouring for new and unique opportunities. We have an entrepreneurial spirit, so we are relentlessly thinking outside of the box.”
By taking the Bakugan brand from a germ of an idea to a hit product and then to a popular animated series, Spin Master became the toy company to watch.
“What started as an inventor’s sketch on a napkin led to a worldwide success, validating Spin Master’s tenets of partnership, integrity and entrepreneurial spirit,” says Jennifer Dodge, senior vice president, entertainment, Spin Master. “From the original idea to the team of partners assembled to bring the show to life, it epitomized Spin Master’s long-held commitment to innovation. Spin Master grew exponentially during the during the four-to-five years that Bakugan was at its prime.”
Acquiring New Heights
Perched on the back of Bakugan’s immense success, Spin Master was able to make a series of key acquisitions that elevated the company to another level.
“Strategic acquisitions have propelled Spin Master’s innovation into new categories, strengthening existing business and creating new opportunities for growth,” says Boylan. “These acquisitions have further reinforced Spin Master’s position as licensor and licensee.”
The acquisition of Spy Gear expanded Spin Master’s portfolio of boys’ action and outdoor toys. Acquiring Meccano brought Spin Master into the building sets category. Buying Cardinal Games made Spin Master a leading manufacturer in the games and puzzles category in North America. Other key acquisitions include GUND, Etch A Sketch, Toca Boca/Sago Mini, Swimways, Marbles, Aerobie and Perplexus.
“The acquisition of Toca Boca and Sago Mini, with their strong brand presence, allowed Spin Master to develop a leadership position in the mobile app space for kids, rounding out our ability to entertain kids in both the physical and digital world,” adds Boylan.
Stealing the Show
Spin Master launched its entertainment division in 2008 in an effort to create cross-platform children’s content that would complement its expansive toy offering. Since then, the division has produced more than 200 half-hours of kids’ programming for television, film and the web – including one wildly popular series about a group of special dogs.
In 2014, Spin Master launched “PAW Patrol,” its first fully in-house developed multi-platform property. The CGI-animated series, airing on Nickelodeon, and its accompanying toy line, is arguably one of Spin Master’s biggest wins. Led by 10-year-old Ryder, a group of heroic pups – Chase, Marshall, Rocky, Rubble, Skye, Everest, Zuma and Tracker – embark on various brave missions to help those in need.