Build-A-Bear Scores New Exclusive Partnership Deal with Super Bowl LVIII Champion Kansas City Chiefs

Rhea-AI Summary

Build-A-Bear Workshop, Inc. (NYSE: BBW) has announced an exclusive multi-year partnership with the Kansas City Chiefs, the back-to-back Super Bowl champions. This deal makes Build-A-Bear the 'official bear' brand of the team and includes presenting partnerships for the team mascot 'KC Wolf' and the Chiefs digital Fan Cam experience. Additionally, Build-A-Bear has expanded its 20-year NFL licensed co-branded product lineup to include every NFL team.

The company is launching an amplified marketing effort, including 'Jersey Thursdays' where fans can receive a 10% discount on in-store purchases by wearing their favorite NFL team jersey. This partnership aligns with Build-A-Bear's growth strategy, appealing to a broadening consumer demographic that now includes 'kidults' representing up to 40% of the business.

Positive

• Exclusive multi-year partnership with Super Bowl champions Kansas City Chiefs
• Expansion of NFL licensed product lineup to include all teams
• Launch of 'Jersey Thursdays' promotion to drive in-store sales
• Broadening consumer demographic, with 'kidults' now representing up to 40% of business

Negative

• None.

Insights

Marketing Analyst

This partnership between Build-A-Bear and the Kansas City Chiefs is a strategic move to capitalize on the team's recent success and expand Build-A-Bear's market reach. The deal offers multiple touchpoints for fan engagement, including the mascot sponsorship and digital Fan Cam experience, which could significantly boost brand visibility during game days.

The expansion of NFL-licensed products to include all teams is a smart play to capture a wider market share across the country. The 10% discount promotion for jersey-wearing customers on "Jersey Throughdays" is a clever tactic to drive foot traffic to physical stores, potentially increasing sales and cross-selling opportunities.

Most importantly, this partnership aligns with Build-A-Bear's strategy to tap into the growing "kidult" market, which now accounts for up to 40% of their business. This demographic expansion could lead to increased revenue and a more diverse customer base, potentially stabilizing sales beyond the traditional children's market.

Financial Analyst

While specific financial terms of the deal aren't disclosed, this partnership has potential positive implications for Build-A-Bear (NYSE: BBW). The exclusive multi-year deal with the Chiefs, coupled with the expanded NFL product line, could drive revenue growth in several ways:

• Increased brand exposure through stadium presence and digital engagement
• Potential boost in sales from the new "Jersey Thursdays" promotion
• Expanded market reach by offering products for all NFL teams
• Further penetration into the lucrative "kidult" market segment

Investors should monitor upcoming quarterly reports to gauge the impact on revenue and profit margins. If successful, this strategy could serve as a template for future partnerships with other sports franchises, potentially leading to long-term growth opportunities for Build-A-Bear.

And Expands 20-Year NFL Licensed Co-Branded Product Lineup to Include Every Team

ST. LOUIS, Sept. 5, 2024 /PRNewswire/ -- Build-A-Bear Workshop, Inc. (NYSE: BBW), announced today an exclusive multi-year deal with the back-to-back Super Bowl Champion Kansas City Chiefs. Among other ongoing brand building opportunities, Build-A-Bear will be the presenting partner of both the popular team mascot, "KC Wolf," and the Chiefs digital Fan Cam experience focused on game attendees tagging themselves in a high-resolution, full-stadium picture as well as locating a Build-A-Bear in the stands during each home game for the chance to win a special prize. This collaBEARation between the two Missouri-based organizations also makes Build-A-Bear the "official bear" brand of the storied team.

Build-A-Bear will be the presenting partner of the team mascot, "KC Wolf," and the Chiefs digital Fan Cam experience.

"We believe this multi-dimensional relationship underscores the winning formula that has been created between the two organizations, and adding the Kansas City Chiefs, our corporate "home team," to the roster is clearly a touchdown," added Chris Hurt, Chief Operating Officer of Build-A-Bear.

For over 20 years, Build-A-Bear's officially licensed NFL product has delighted both football and furry friend fans. The new product lineup sports a variety of official co-branded products for EVERY NFL team and are available online and in select Build-A-Bear Workshops across the country where localized team offerings will be featured. This season, an amplified marketing effort will support an opportunity for fans to get in the game on "Jersey Thursdays" at participating Workshops by wearing their favorite NFL team jersey to receive a 10% discount on a Build-A-Bear in-store purchase starting Thursday, September 5.

As a part of Build-A-Bear's growth strategy, the Kansas City Chiefs partnership is envisioned to appeal to the broadening consumer demographic that has already purchased NFL/Build-A-Bear co-branded products to date and comes at a time when the fan bases of the two brands overlap more than ever. In recent years, Build-A-Bear's sales have extended beyond the original core of kids to include teen and adult consumers, also known as "kidults," who now represent up to 40% of the business.

About Build-A-Bear
Since its beginning in 1997, Build-A-Bear has evolved to become a beloved multi-generational brand focused on its mission to "add a little more heart to life" where guests of all ages make their own "furry friends" in celebration and commemoration of life moments. Guests create their own stuffed animals by participating in the stuffing, dressing, accessorizing, and naming of their own teddy bears and other plush toys based on the Company's own intellectual property and in conjunction with a variety of best-in-class licenses. The hands-on and interactive nature of our more than 500 company-owned, partner-operated and franchise experience locations around the world, combined with Build-A-Bear's pop-culture appeal, often fosters a lasting and emotional brand connection with consumers, and has enabled the Company to expand beyond its retail stores to include e-commerce sales on www.buildabear.com and non-plush branded consumer categories via out-bound licensing agreements with leading manufacturers, as well as the creation of engaging content via Build-A-Bear Entertainment (a subsidiary of Build-A-Bear Workshop, Inc.). The brand's newest communications campaign, "The Stuff You Love," commemorates more than a quarter-century of creating cherished memories worldwide. Build-A-Bear Workshop, Inc. (NYSE: BBW) posted consolidated total revenues of $486.1 million for fiscal 2023. For more information, visit the Investor Relations section of buildabear.com.

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SOURCE Build-A-Bear Workshop

FAQ

What is Build-A-Bear's new partnership with the Kansas City Chiefs?

Build-A-Bear (BBW) has signed an exclusive multi-year deal with the Kansas City Chiefs, becoming the 'official bear' brand of the team and the presenting partner of the team mascot 'KC Wolf' and the Chiefs digital Fan Cam experience.

How has Build-A-Bear expanded its NFL product lineup?

Build-A-Bear has expanded its 20-year NFL licensed co-branded product lineup to include every NFL team, available online and in select Build-A-Bear Workshops across the country.

What is Build-A-Bear's 'Jersey Thursdays' promotion?

Starting September 5, 2024, fans wearing their favorite NFL team jersey to participating Build-A-Bear Workshops on Thursdays can receive a 10% discount on in-store purchases.

How has Build-A-Bear's consumer demographic changed recently?

Build-A-Bear's sales have extended beyond children to include teen and adult consumers, known as 'kidults', who now represent up to 40% of the business.