Vermont Teddy Bear Company
An American manufacturer and direct-to-consumer seller of handcrafted teddy bears and novelty gifts.
Last updated August 26, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
The Vermont Teddy Bear Company is an American teddy-bear manufacturer and direct-to-consumer gift business based in Shelburne, Vermont. It was founded in 1983 by John Sortino, who initially sold handcrafted bears at an open-air market in Burlington. The company developed its mail-order model after a tourist asked Sortino to send a bear to her home. That request led to the creation of the Bear-Gram, a packaged gift built around a customized teddy bear, an air hole in the shipping box, and additional treats or accessories. The Bear-Gram concept became the foundation of Vermont Teddy Bear's business. The company positioned a mailed teddy bear as an alternative to conventional floral and other occasion-based gifts, using direct marketing, catalog sales, telephone ordering, and later Internet commerce. Its products were commonly associated with Valentine's Day, birthdays, anniversaries, births, get-well messages, apologies, and other personal occasions. The company became one of the largest teddy-bear producers in the United States and described itself as the country's largest seller of teddy bears by mail order and online. Reference material states that it handcrafted nearly 500,000 teddy bears annually and offered more than 300 products. Vermont Teddy Bear moved to a headquarters and factory in Shelburne in 1995. The site combined manufacturing, visitor experiences, and retail activity, helping turn the company into a Vermont tourist attraction. Factory visitors could take tours and participate in the Make a Friend for Life experience, selecting a bear's fur, stuffing, and accessories before the bear was completed and issued a birth certificate. The factory reportedly attracted more than 50,000 visitors per year. A satellite factory in Newport, Vermont, closed in June 2010. The company's core assortment has included 15-inch jointed bears, with honey-colored bears identified as a particularly popular style. Other fur colors have included buttercream, vanilla, black licorice, gray, pink, maple, espresso, and snow. The business also sells clothing and accessories for bears and has expanded into other plush animals, including sloths, monkeys, and dragons. A lifetime unconditional guarantee, supported by the company's Bear Hospital, has been a distinctive service promise: damaged bears can be sent to the factory for repair, while bears deemed beyond repair may be replaced. Vermont Teddy Bear also developed a broader gift portfolio. It acquired the upscale flower company Calyx & Corolla in 2003, although that business was later no longer associated with Vermont Teddy Bear. In 2005 it introduced Gift Bag Boutique, while PajamaGram and TastyGram operated as related gift businesses under the broader Vermont Teddy Bear umbrella. Gift Bag Boutique and TastyGram stopped accepting orders in June 2008, and the company's relationship with Calyx & Corolla subsequently ended. The company was formerly listed on NASDAQ under the symbol BEAR. In 2005, a Mustang Group-led investment group agreed to acquire it for $6.50 per share, and the transaction took the company private on September 30 of that year. The reference material connects the privatization in part with a desire to avoid the public-company reporting requirements associated with the Sarbanes-Oxley Act. On April 8, 2024, The Vermont Flannel Company announced that it had acquired Vermont Teddy Bear. The brand remains associated with Vermont-made craftsmanship, personalized occasion gifting, mail-order retail, and the Shelburne factory experience.
History
Vermont Teddy Bear Company began in 1983 when John Sortino sold handcrafted teddy bears at an open-air market in Burlington, Vermont. The company's eventual mail-order model originated with an individual customer: a tourist wanted a bear sent to her home. Sortino responded by developing a shippable gift package that became known as the Bear-Gram. The package combined a customized teddy bear with an air hole in the box and additional gift items, turning a locally made product into a nationally marketable occasion gift. The Bear-Gram helped define the company's identity and commercial model. Vermont Teddy Bear promoted teddy bears as an expressive alternative to flowers and other traditional gifts, particularly for Valentine's Day and other personal occasions. The company used direct marketing and, as electronic commerce developed, Internet ordering to reach customers throughout the United States. It became one of the largest American teddy-bear producers and a leading mail-order and online seller. Reference material states that the company produced almost 500,000 bears per year and handcrafted each bear. In 1995, Vermont Teddy Bear moved into a new headquarters and factory in Shelburne, in Vermont's Champlain Valley. The facility became both a production center and a visitor destination. Factory tours allowed customers and tourists to see aspects of the manufacturing operation, while the Make a Friend for Life room offered a participatory experience. Visitors could select fur, stuffing, and accessories, after which a representative completed the sewing and helped prepare a birth certificate for the finished bear. The factory reportedly hosted more than 50,000 visitors annually. The company also operated a satellite factory in Newport, Vermont, until that facility closed in June 2010. The product range expanded beyond the original handcrafted bear. The company offered more than 300 items, including its popular 15-inch jointed bears, bears in multiple colors and fur textures, outfits for different occasions, and limited editions made in small quantities. It later added plush animals such as sloths, monkeys, and dragons. A lifetime unconditional guarantee supported the brand's quality positioning. Through its Bear Hospital, the company offered to repair damaged bears without charge and replace bears that could not be restored. Vermont Teddy Bear also pursued a broader direct-gifting strategy. It acquired Calyx & Corolla, an upscale flower company based in Vero Beach, Florida, in 2003. The acquisition complemented the brand's long-standing positioning of teddy bears as an alternative to flowers, although Calyx & Corolla later ceased to be associated with Vermont Teddy Bear. In 2005, the company launched Gift Bag Boutique, adding handbags, purses, and makeup accessories to its related offerings. PajamaGram and TastyGram also operated as sister businesses, bringing the stated number of businesses under the broader umbrella to five. Gift Bag Boutique and TastyGram stopped taking orders on June 26, 2008. The brand encountered controversy in 2005 after introducing the Crazy for You Bear for Valentine's Day. The bear wore a white strait jacket with a red heart, and the package included a tag called Commitment Papers. Mental-health organizations across the United States objected and requested that the product be withdrawn. Vermont Teddy Bear continued selling it, and the product reportedly sold out rapidly. Company head Elizabeth Robert subsequently resigned from the board of Fletcher Allen Health Care, described in the source material as Vermont's largest hospital. The company was once publicly traded on NASDAQ under the ticker BEAR. In May 2005, a Mustang Group-led investment group agreed to buy the business for $6.50 per share. Vermont Teddy Bear became privately held on September 30, 2005; the reference material identifies avoiding public-company reporting requirements related to Sarbanes-Oxley as one factor in the transaction. On April 8, 2024, The Vermont Flannel Company announced that it had acquired Vermont Teddy Bear. The brand's continuing identity rests on handcrafted Vermont production, personalized gift delivery, factory tourism, broad plush assortments, and lifetime care for its bears.
- 2024
Acquired by The Vermont Flannel Company
[1]The Vermont Flannel Company announced its acquisition of Vermont Teddy Bear on April 8.
- 2017
Vermont Cub Project founded
[1]The Vermont Cub Project began offering coupons enabling four-year-old Vermont residents to make a free Vermont Teddy Bear.
- 2010
Newport satellite factory closes
[1]The company's satellite manufacturing facility in Newport, Vermont, closed in June.
- 2008
Gift Bag Boutique and TastyGram stop accepting orders
[1]The two related gift businesses stopped accepting orders on June 26, 2008.
- 2005
Gift Bag Boutique launched
[1]The company introduced a sister business selling handbags, purses, and makeup accessories.
- 2005
Company taken private
[1]A Mustang Group-led investment group acquired the company for $6.50 per share, and the business ceased being publicly traded on September 30.
- 2003
Calyx & Corolla acquired
[1]Vermont Teddy Bear acquired upscale flower company Calyx & Corolla.
- 1997
Copyright lawsuit against Disney
[1]The company filed suit alleging that Disney's Pooh-Grams infringed the Bear-Gram trademark and logo.
- 1996
Guns-for-bears program expands to the West Coast
[1]The exchange initiative expanded to the U.S. West Coast, beginning with UC Irvine's Student Physicians for Social Responsibility and the Brea Police Department.
- 1995
Shelburne headquarters and factory opens
[1]The company moved into a new headquarters and factory in Shelburne, Vermont, which later became a manufacturing and tourism site.
Products and positioning
A Vermont-made, handcrafted and personalized alternative to conventional occasion gifts, combining teddy-bear manufacturing with direct-to-consumer mail-order, Internet sales, factory tourism, and lifetime product care.
Teddy bears
15-inch Jointed Bears
The company's core bear line consists of handcrafted, jointed teddy bears, with the 15-inch size identified as especially popular. Bears have been offered in standard colors such as honey, buttercream, vanilla, black licorice, gray, and pink, as well as longer premium-fur colors including maple, espresso, and snow.
Personalized gift package · 1983
Bear-Gram
The Bear-Gram is the company's signature mail-order gifting format. It packages a customized teddy bear in a shipping box designed with an air hole and may include additional treats or accessories. The concept originated from an early customer request to have a bear mailed home and became central to the brand's direct-to-consumer identity.
Plush accessories
Bear clothing and accessories
Vermont Teddy Bear offers outfits and accessories intended to dress bears for holidays, celebrations, occupations, relationships, and other occasions. These items extend the personalization of the core bear and support the company's occasion-gifting model.
Collectible teddy bears
Limited-edition bears
The company produces selected bears in restricted quantities, with reference material describing editions commonly limited to approximately 35 or 50 pieces. These releases appeal to collectors and reinforce the handcrafted and special-edition positioning of the brand.
Plush toys
Other plush animals
Beyond traditional teddy bears, the assortment has expanded to other plush animals, including sloths, monkeys, and dragons. These products broaden the brand's appeal while retaining its handcrafted plush-gift orientation.
Product care service
Bear Hospital service
The Bear Hospital supports the company's unconditional lifetime guarantee. Customers can send damaged bears to the factory for no-charge care; when a bear is considered too badly damaged to restore, the company may replace it with a new bear.
Controversies
2005
Crazy for You Bear controversy
For Valentine's Day 2005, Vermont Teddy Bear marketed a bear wearing a white strait jacket with a red heart and included a tag titled Commitment Papers. Mental-health organizations around the United States criticized the product and asked the company to withdraw it. The company continued selling the bear, which reportedly sold out quickly. Elizabeth Robert, identified in the source as the company head, later resigned from the board of Fletcher Allen Health Care.
Marketing campaigns
- 2017Vermont Cub Project
Vermont, United States
The Vermont Cub Project provides coupons for four-year-old Vermont residents to make a free Vermont Teddy Bear, linking the brand to local families and the factory experience.
Outcome. The project is described as an ongoing local-access initiative in the reference material, but its participation results are not provided.
- 1996West Coast guns-for-bears expansion
United States West Coast
The guns-for-bears effort expanded westward, beginning with UC Irvine's Student Physicians for Social Responsibility and the Brea Police Department.
Outcome. The expansion established a West Coast component of the exchange program; further results are not specified in the reference material.
- 1995Guns-for-bears exchanges
United States East Coast
Vermont Teddy Bear sponsored exchanges in which firearms were traded for teddy bears. The initiative was active on the U.S. East Coast in 1995 and was later extended to the West Coast.
Outcome. The program expanded to the West Coast in 1996; the available reference does not provide participation totals or a final end date.
Brand decisions
2024
Acquisition by The Vermont Flannel CompanyM&ABackground
The acquisition placed Vermont Teddy Bear under the ownership of another Vermont-oriented consumer brand.
Action taken
The Vermont Flannel Company announced on April 8, 2024, that it had acquired Vermont Teddy Bear.
Aftermath
The brand continued as an active Vermont gift and teddy-bear business; detailed post-acquisition operating changes are not provided in the reference material.
2010
Close Newport satellite factoryStrategyBackground
The company operated manufacturing in more than one Vermont location before consolidating activity.
Action taken
Vermont Teddy Bear closed its Newport satellite factory in June 2010.
Aftermath
The Shelburne site remained the company's principal factory and visitor destination in the available reference material.
2005
Launch Gift Bag BoutiqueStrategyBackground
The company sought to broaden its occasion-gifting portfolio beyond teddy bears.
Action taken
Vermont Teddy Bear launched Gift Bag Boutique, offering handbags, purses, and makeup accessories.
Aftermath
Gift Bag Boutique stopped accepting orders on June 26, 2008.
2005
Take-private transactionM&ABackground
Vermont Teddy Bear was publicly traded on NASDAQ, and the source material identifies avoiding public-company reporting requirements associated with the Sarbanes-Oxley Act as one consideration.
Action taken
A Mustang Group-led investment group agreed to acquire the company for $6.50 per share. The transaction closed on September 30, 2005.
Aftermath
The company ceased to be publicly traded and was no longer listed on NASDAQ under BEAR.
Acquisition price per share. $6.50 per share (2005 acquisition announced in May; transaction completed September 30, 2005)
2003
Acquire Calyx & CorollaM&ABackground
Vermont Teddy Bear's marketing positioned teddy bears as an alternative to sending flowers, making a flower-gifting business strategically adjacent.
Action taken
The company acquired Calyx & Corolla, an upscale flower company headquartered in Vero Beach, Florida.
Aftermath
Calyx & Corolla was later no longer associated with Vermont Teddy Bear.
1995
Move headquarters and manufacturing to ShelburneStrategyBackground
The company needed a larger or more suitable operating base as its handcrafted-bear and direct-gifting business developed.
Action taken
Vermont Teddy Bear moved into a new headquarters and factory in Shelburne, Vermont.
Aftermath
The site became a manufacturing facility, retail location, and tourist attraction with factory tours and participatory bear-making experiences.
Recent events
Vermont Teddy Bear partners to reproduce Bernie Sanders-inspired mittens[2]
Reported:
Vermont Teddy Bear partnered with teacher Jen Ellis to reproduce the mittens inspired by those worn by Bernie Sanders; a portion of proceeds will benefit Make-A-Wish Vermont.
Vermont Teddy Bear partners with Jen Ellis on mitten line[3]
Reported:
Vermont Teddy Bear partnered with mitten maker Jen Ellis to create a mitten line to meet demand; some proceeds were to go to Make-A-Wish Vermont.
Sources3 sources
Cite this profile: Cite the canonical profile. /brand-wiki/vermont-teddy-bear-company · Editorial policy · How profiles are compiled