Vermont Teddy Bear Company

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.

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.

1. 2024Acquired by The Vermont Flannel Company

   The Vermont Flannel Company announced its acquisition of Vermont Teddy Bear on April 8.

   Source
2. 2017Vermont Cub Project founded

   The Vermont Cub Project began offering coupons enabling four-year-old Vermont residents to make a free Vermont Teddy Bear.

   Source
3. 2010Newport satellite factory closes

   The company's satellite manufacturing facility in Newport, Vermont, closed in June.

   Source
4. 2008Gift Bag Boutique and TastyGram stop accepting orders

   The two related gift businesses stopped accepting orders on June 26, 2008.

   Source
5. 2005Gift Bag Boutique launched

   The company introduced a sister business selling handbags, purses, and makeup accessories.

   Source
6. 2005Company taken private

   A Mustang Group-led investment group acquired the company for $6.50 per share, and the business ceased being publicly traded on September 30.

   Source
7. 2003Calyx & Corolla acquired

   Vermont Teddy Bear acquired upscale flower company Calyx & Corolla.

   Source
8. 1997Copyright lawsuit against Disney

   The company filed suit alleging that Disney's Pooh-Grams infringed the Bear-Gram trademark and logo.

   Source
9. 1996Guns-for-bears program expands to the West Coast

   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.

   Source
10. 1995Shelburne headquarters and factory opens

    The company moved into a new headquarters and factory in Shelburne, Vermont, which later became a manufacturing and tourism site.

    Source
11. 1995East Coast guns-for-bears exchanges sponsored

    Vermont Teddy Bear sponsored guns-for-bears exchanges in several locations on the U.S. East Coast.

    Source
12. 1983Company founded in Burlington

    John Sortino founded the company by selling handcrafted teddy bears at an open-air market in Burlington, Vermont.

    Source

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.

• 15-inch Jointed BearsTeddy 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.

• Bear-GramPersonalized gift package1983

  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.

• Bear clothing and accessoriesPlush 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.

• Limited-edition bearsCollectible teddy 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.

• Other plush animalsPlush toys

  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.

• Bear Hospital serviceProduct care 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.

• 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.

  Source
• 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.

  Source
• 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.

  Source

• 2024Acquisition by The Vermont Flannel CompanyM&A

  The acquisition placed Vermont Teddy Bear under the ownership of another Vermont-oriented consumer brand.

  What changed. 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.

  Source
• 2010Close Newport satellite factoryStrategy

  The company operated manufacturing in more than one Vermont location before consolidating activity.

  What changed. 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.

  Source
• 2005Launch Gift Bag BoutiqueStrategy

  The company sought to broaden its occasion-gifting portfolio beyond teddy bears.

  What changed. Vermont Teddy Bear launched Gift Bag Boutique, offering handbags, purses, and makeup accessories.

  Aftermath. Gift Bag Boutique stopped accepting orders on June 26, 2008.

  Source
• 2005Take-private transactionM&A

  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.

  What changed. 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)

  Source
• 2003Acquire Calyx & CorollaM&A

  Vermont Teddy Bear's marketing positioned teddy bears as an alternative to sending flowers, making a flower-gifting business strategically adjacent.

  What changed. 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.

  Source
• 1995Move headquarters and manufacturing to ShelburneStrategy

  The company needed a larger or more suitable operating base as its handcrafted-bear and direct-gifting business developed.

  What changed. 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.

  Source

• 2005Crazy for You Bear controversyControversy

  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.

  Source

• 2024The Vermont Flannel Company announces acquisition of Vermont Teddy Bear

  The Vermont Flannel Company announced on April 8, 2024, that it had acquired Vermont Teddy Bear.

  M&A
  Source
• 2010Vermont Teddy Bear closes Newport satellite factory

  The company's satellite factory in Newport, Vermont, closed in June 2010.

  Other
  Source
• 2005Mustang Group-led investment group agrees to acquire Vermont Teddy Bear

  A Mustang Group-led investment group agreed to acquire the publicly traded company for $6.50 per share. The company was taken private on September 30, 2005.

  M&A
  Source
• 1997Vermont Teddy Bear files copyright lawsuit over Disney Pooh-Grams

  The company filed a copyright infringement suit alleging that Disney's Pooh-Grams were similar to its Bear-Gram trademark and logo.

  Lawsuit
  Source

1. Vermont Teddy Bear Company