American Greetings Corporation, Inc. is the world's largest publicly-traded greeting card company. It is based in Brooklyn, Ohio[3] and sells paper greeting cards, electronic greeting cards, party products (such as wrapping papers and decorations), and electronic expressive content (e.g., ringtones and images for cellphones). In addition to the American Greetings brand, the company owns the Carlton Cards, Tender Thoughts and Gibson brands of greeting cards.
American Greetings is also famous for their toy design and licensing division, Those Characters From Cleveland (now American Greetings Properties). The most-popular copyrighted properties owned by this division include Strawberry Shortcake, the Care Bears, The Get-Along Gang and Holly Hobbie. American Greetings also holds an exclusive license for Nickelodeon characters. Founded in 1906 by Polish immigrant Jacob Sapirstein (1885-1987), who sold cards from a horse-drawn cart, American Greetings has been run by members of the family since its inception. Irving I. Stone (Sapirstein's oldest son, who changed his surname to Stone) was stuffing envelopes at age five, handling the business during his father's illness when he was nine, and worked for the company fulltime upon leaving high school. He was succeeded as CEO by his son-in-law Morry Weiss in 1987, and took the title "Founder-Chairman" previously held by his father, when Weiss became chairman in 1992, before dying in 2000. In 1993, American Greetings began sponsoring the Entertainment Tonight "ET Birthdays", and remained sponsor until 2000, when competitor Hallmark Cards took over sponsorship.
In 2003 Morry Weiss's sons Zev and Jeffrey became CEO and President respectively; Morry Weiss remains Chairman. In early 2007, American Greetings replaced Kellogg's as the sponsor for Dragon Tales.[citation needed] American Greetings has also branched out onto the Internet, and owns a network of websites. On October 25, 2007, it announced the purchase of Webshots from CNET for $45 million in cash.
Distribution Strategy
Open market conditions combined with narrowing profit margins and lowering prices have left distribution channel partners groping for identity and precious territory in Latin America. Major international vendors are establishing new channels and modifying old relationships to increase market penetration and protect market share. These shifts in relationships are forcing traditional small dealers to adjust their skill sets and support capabilities to serve more demanding customers. Meanwhile, VARs are being pushed into providing more end-user services, and distributors are being forced to become more like high-volume box movers focused on tight margins and few or no services.
While similarities exist throughout the region, each of the six countries studied by IDC (Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela) are at varying stages of channel maturity and have differing characteristics. Mexican distribution is rapidly reflecting a North American model with a decidedly two-tier structure. This is reflected by many international manufacturers, which include Mexico in their U.S. and Canadian sales regions. Like Mexican channels, Chilean and Colombian channels are dominated by a top tier of players that steer the market. In Argentina, Brazil, and Venezuela, however, channels are less concentrated and numerous players vie for domination and leadership.
Greeting card company American Greetings Corp. and fine stationery manufacturer Crane & Co. Inc. announced a multi-year partnership to produce a greeting card collection called Perfectly Said by Crane & Co. The collection is being launched in Wal-Mart exclusively, American Greetings spokesperson Frank Cirillo told Gifts & Decorative Accessories.
"This collaboration represents a great opportunity for us to pair our editorial excellence with the best-in-class craftsmanship that Crane & Co. offers," said John Beeder, senior vice president, executive sales and marketing at American Greetings. The cards will be printed on higher grade paper stock, allowing for a greater number of special finishings.
American Greetings will produce and distribute the cards, Ann Usher, new business manager at Crane & Co., told Gifts & Decorative Accessories. The deal is structured as a licensing agreement.
"We recognize that although we have a very successful card line under the Crane & Co. brand, we were really selling cards only in a very small distribution channel. we're missing a huge part of the greeting card market. We really wanted to expand the reach of our business in the greeting card category, and the best way to do that was to partner with one of the companies that is the master of those sorts of mass channel business models," said Usher. Crane is not concerned about the line stealing customers from its existing greeting card line, she said, since the existing line has more of a "niche sensibility".
As the company grew, it adapted its products to changing societal moods. During the 1950s it began designing “studio cards,” tall, narrow cards that featured cartoon-style artwork and irreverent humor.
During the 1960s and beyond, it expanded its content to include cards featuring ethnic diversity,
environmentalism, and new-age spirituality. It created cards for new holidays, from Groundhog Day to
National Teacher Appreciation Week to Maidyozarem Gahanbar, the Zoroastrian spring festival. During
the 1990s the company branched out into customized electronic cards, building the industry’s largest
online card website. And following the September 11 terrorist attacks, it created holiday cards with
patriotic themes.
American Greetings also expanded its expertise into non-card consumer products, such as hair accessories,
picture frames, and wrapping paper. In 1967 the company created Holly Hobbie, the first “licensed
character,” a girl in a blue bonnet whose image was imprinted not just on cards but also on clothing, gift
wrap, coffee mugs, toys, and other products. A number of other licensed characters followed, the most
profitable being Care Bears and Strawberry Shortcake. These properties generated tremendous levels of
loyalty and sales: for example, in less than a year, the company created more than 600 different
Strawberry Shortcake products, and the character appeared in two television specials and numerous
magazines.
As American Greetings approached its 100-year anniversary, it was a flourishing company. By 1986 the
business that began by selling penny postcards had reached one billion dollars of revenue. By 2005 the
company boasted annual sales of $1.8 billion. (See Exhibit 2 for American Greetings financial data and
Exhibit 3 for American Greetings stock performance.)
Amscan Holdings, Inc. today announced a strategic alliance with American Greetings Corporation (American Greetings), the Cleveland-based manufacturer and retailer of innovative social expression products.
As part of the alliance, Amscan acquired inventory, equipment and processes used by American Greetings in the manufacture and distribution of party goods. Amscan will have exclusive rights to manufacture and distribute products into various channels, including the party store channel. American Greetings will now source party goods from Amscan and will continue to distribute party goods to various channels, including to its mass, drug, grocery and specialty retail customers.
In connection with the transaction, American Greetings received cash of $24,880,000 and a warrant to purchase approximately 2% of the Common Stock of AAH Holdings Corporation, Amscan's ultimate parent corporation.
Gerry Rittenberg, Amscan's Chief Executive said, "We are excited by the opportunities that this new alliance with American Greetings provides. The strength of our two organizations will enable us to better serve the broad retail market."
American Greetings Corporation (NYSE: AM)
today announced a strategic alliance with Amscan, Inc. (Amscan), a leading designer, manufacturer and distributor
of party goods based in Elmsford, NY.
As part of this transaction, American Greetings will sell to Amscan inventory, equipment and processes used in the
manufacture and distribution of party goods. American Greetings will now source its party goods from Amscan,
and will continue to distribute party goods to various channels, including to its mass, drug, grocery and specialty
retail partners. Amscan will have exclusive rights to manufacture and distribute products into various channels,
including the party store channel. As a result of the strategic alliance, American Greetings will be able to offer a
broader assortment of licensed and non-licensed party goods products to its retail partners.
American Greetings expects to receive cash of approximately $25 million and a warrant to purchase approximately
2% of the Class A Common Stock of AAH Holdings Corporation, Amscan's ultimate parent corporation.
As a result of this transaction, American Greetings will wind down its manufacturing of party goods products.
American Greetings expects to incur non-cash asset impairment costs of approximately $10 million to $15 million.
In addition, American Greetings expects to incur facility related cash closure costs, primarily severance, in an
amount that is still being quantified.
American Greetings is also famous for their toy design and licensing division, Those Characters From Cleveland (now American Greetings Properties). The most-popular copyrighted properties owned by this division include Strawberry Shortcake, the Care Bears, The Get-Along Gang and Holly Hobbie. American Greetings also holds an exclusive license for Nickelodeon characters. Founded in 1906 by Polish immigrant Jacob Sapirstein (1885-1987), who sold cards from a horse-drawn cart, American Greetings has been run by members of the family since its inception. Irving I. Stone (Sapirstein's oldest son, who changed his surname to Stone) was stuffing envelopes at age five, handling the business during his father's illness when he was nine, and worked for the company fulltime upon leaving high school. He was succeeded as CEO by his son-in-law Morry Weiss in 1987, and took the title "Founder-Chairman" previously held by his father, when Weiss became chairman in 1992, before dying in 2000. In 1993, American Greetings began sponsoring the Entertainment Tonight "ET Birthdays", and remained sponsor until 2000, when competitor Hallmark Cards took over sponsorship.
In 2003 Morry Weiss's sons Zev and Jeffrey became CEO and President respectively; Morry Weiss remains Chairman. In early 2007, American Greetings replaced Kellogg's as the sponsor for Dragon Tales.[citation needed] American Greetings has also branched out onto the Internet, and owns a network of websites. On October 25, 2007, it announced the purchase of Webshots from CNET for $45 million in cash.
Distribution Strategy
Open market conditions combined with narrowing profit margins and lowering prices have left distribution channel partners groping for identity and precious territory in Latin America. Major international vendors are establishing new channels and modifying old relationships to increase market penetration and protect market share. These shifts in relationships are forcing traditional small dealers to adjust their skill sets and support capabilities to serve more demanding customers. Meanwhile, VARs are being pushed into providing more end-user services, and distributors are being forced to become more like high-volume box movers focused on tight margins and few or no services.
While similarities exist throughout the region, each of the six countries studied by IDC (Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela) are at varying stages of channel maturity and have differing characteristics. Mexican distribution is rapidly reflecting a North American model with a decidedly two-tier structure. This is reflected by many international manufacturers, which include Mexico in their U.S. and Canadian sales regions. Like Mexican channels, Chilean and Colombian channels are dominated by a top tier of players that steer the market. In Argentina, Brazil, and Venezuela, however, channels are less concentrated and numerous players vie for domination and leadership.
Greeting card company American Greetings Corp. and fine stationery manufacturer Crane & Co. Inc. announced a multi-year partnership to produce a greeting card collection called Perfectly Said by Crane & Co. The collection is being launched in Wal-Mart exclusively, American Greetings spokesperson Frank Cirillo told Gifts & Decorative Accessories.
"This collaboration represents a great opportunity for us to pair our editorial excellence with the best-in-class craftsmanship that Crane & Co. offers," said John Beeder, senior vice president, executive sales and marketing at American Greetings. The cards will be printed on higher grade paper stock, allowing for a greater number of special finishings.
American Greetings will produce and distribute the cards, Ann Usher, new business manager at Crane & Co., told Gifts & Decorative Accessories. The deal is structured as a licensing agreement.
"We recognize that although we have a very successful card line under the Crane & Co. brand, we were really selling cards only in a very small distribution channel. we're missing a huge part of the greeting card market. We really wanted to expand the reach of our business in the greeting card category, and the best way to do that was to partner with one of the companies that is the master of those sorts of mass channel business models," said Usher. Crane is not concerned about the line stealing customers from its existing greeting card line, she said, since the existing line has more of a "niche sensibility".
As the company grew, it adapted its products to changing societal moods. During the 1950s it began designing “studio cards,” tall, narrow cards that featured cartoon-style artwork and irreverent humor.
During the 1960s and beyond, it expanded its content to include cards featuring ethnic diversity,
environmentalism, and new-age spirituality. It created cards for new holidays, from Groundhog Day to
National Teacher Appreciation Week to Maidyozarem Gahanbar, the Zoroastrian spring festival. During
the 1990s the company branched out into customized electronic cards, building the industry’s largest
online card website. And following the September 11 terrorist attacks, it created holiday cards with
patriotic themes.
American Greetings also expanded its expertise into non-card consumer products, such as hair accessories,
picture frames, and wrapping paper. In 1967 the company created Holly Hobbie, the first “licensed
character,” a girl in a blue bonnet whose image was imprinted not just on cards but also on clothing, gift
wrap, coffee mugs, toys, and other products. A number of other licensed characters followed, the most
profitable being Care Bears and Strawberry Shortcake. These properties generated tremendous levels of
loyalty and sales: for example, in less than a year, the company created more than 600 different
Strawberry Shortcake products, and the character appeared in two television specials and numerous
magazines.
As American Greetings approached its 100-year anniversary, it was a flourishing company. By 1986 the
business that began by selling penny postcards had reached one billion dollars of revenue. By 2005 the
company boasted annual sales of $1.8 billion. (See Exhibit 2 for American Greetings financial data and
Exhibit 3 for American Greetings stock performance.)
Amscan Holdings, Inc. today announced a strategic alliance with American Greetings Corporation (American Greetings), the Cleveland-based manufacturer and retailer of innovative social expression products.
As part of the alliance, Amscan acquired inventory, equipment and processes used by American Greetings in the manufacture and distribution of party goods. Amscan will have exclusive rights to manufacture and distribute products into various channels, including the party store channel. American Greetings will now source party goods from Amscan and will continue to distribute party goods to various channels, including to its mass, drug, grocery and specialty retail customers.
In connection with the transaction, American Greetings received cash of $24,880,000 and a warrant to purchase approximately 2% of the Common Stock of AAH Holdings Corporation, Amscan's ultimate parent corporation.
Gerry Rittenberg, Amscan's Chief Executive said, "We are excited by the opportunities that this new alliance with American Greetings provides. The strength of our two organizations will enable us to better serve the broad retail market."
American Greetings Corporation (NYSE: AM)
today announced a strategic alliance with Amscan, Inc. (Amscan), a leading designer, manufacturer and distributor
of party goods based in Elmsford, NY.
As part of this transaction, American Greetings will sell to Amscan inventory, equipment and processes used in the
manufacture and distribution of party goods. American Greetings will now source its party goods from Amscan,
and will continue to distribute party goods to various channels, including to its mass, drug, grocery and specialty
retail partners. Amscan will have exclusive rights to manufacture and distribute products into various channels,
including the party store channel. As a result of the strategic alliance, American Greetings will be able to offer a
broader assortment of licensed and non-licensed party goods products to its retail partners.
American Greetings expects to receive cash of approximately $25 million and a warrant to purchase approximately
2% of the Class A Common Stock of AAH Holdings Corporation, Amscan's ultimate parent corporation.
As a result of this transaction, American Greetings will wind down its manufacturing of party goods products.
American Greetings expects to incur non-cash asset impairment costs of approximately $10 million to $15 million.
In addition, American Greetings expects to incur facility related cash closure costs, primarily severance, in an
amount that is still being quantified.
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