Perth headquartered Brainytoys Ltd has entered into an agreement with Modern Brands Pty Ltd to appoint Modern Brands as the exclusive marketer and distributor for a range of Brainytoys products for the Australian and New Zealand markets.
Perth headquartered Brainytoys Ltd has entered into an agreement with Modern Brands Pty Ltd to appoint Modern Brands as the exclusive marketer and distributor for a range of Brainytoys products for the Australian and New Zealand markets.
As part of the memorandum of understanding, Modern Brands has also been granted pre-emptive marketing rights for the United Kingdom.
The MOU includes the development of new products by Brainytoys in partnership with Modern Brands, expanding Brainytoys' current range of products.
The new range includes products intended to exploit top-tier licensed properties from the entertainment industry such as cartoon and film characters.
Brainytoys Managing Director Alex Aguero said, "This is a significant milestone in Brainytoys'
commercialisation program and opens up major commercial opportunities for our company in the Australian and New Zealand markets.
The geographic and market segment coverage offered by Modern Brands is almost 100 per cent of the Australian and New Zealand markets targeted by Brainytoys.
The agreement perfectly complements the recently announced MOUs with Enertec Enterprises Ltd and Reveal Entertainment Inc.
A very important aspect of the agreement with Modern Brands includes a program of joint product
development across a broad range of product segments, capitalising on Brainytoys' product development capabilities and technology and Modern Brands' significant market position.
The partnership will provide a significant base for Brainytoys' activities as the company continues to build its strategic position with high-quality marketing and distribution partners across world markets.
Below is the full announcement:
BRAINYTOYS SIGNS MOU WITH MODERN BRANDS - THE FASTEST
GROWING TOY MARKETER AND DISTRIBUTOR IN AUSTRALIA
Brainytoys Limited (ASX Code: BRT) ("Brainytoys") has entered into a Memorandum of Understanding ("MOU") with Modern Brands Pty Ltd ("Modern Brands") to appoint Modern Brands as the exclusive marketer and distributor for a range of Brainytoys products for the Australian and New Zealand markets.
As part of the MOU, Modern Brands has also been granted pre-emptive marketing rights for the United Kingdom.
The MOU includes the development of new products by Brainytoys in partnership with Modern Brands,expanding Brainytoys' current range of products.
The new range includes products intended to exploit top-tier licensed properties from the entertainment industry such as cartoon and film characters.
Modern Brands - www.modernbrands.com.au & www.modernbrands.co.nz - is one of the largest and fastestgrowing toy marketing and distribution companies in Australia and New Zealand.
Modern Brands' achievements were recognised this year when awarded Australia's Fastest Growing Distributor Award in the Toy sector by GFK Australia - http://www.gfk.com.au, one of the largest market research organisations worldwide, which specialises in monitoring the product sales and market trends of the Toy industry.
Modern Brands markets and distributes products from a portfolio of some of the world's top toy brands to:
-The education market in Australia and New Zealand through its Modern Teaching Aids division (MTA) -
www.teaching.com.au; Kangaroo Educational & Kesco Educational;
-Gift, Toy, Hobby and Specialty stores and Mass-Market Retail Chains across Australia and New
Zealand; and
-Directly to consumers.
Additionally Modern Brands publishes over a million product catalogues every year for distribution across Australia and New Zealand
Brainytoys Managing Director Mr Alex Aguero said, "This is a significant milestone in Brainytoys'
commercialisation program and opens up major commercial opportunities for our company in the Australian and New Zealand markets.
The geographic and market segment coverage offered by Modern Brands is almost 100% of the Australian and New Zealand markets targeted by Brainytoys.
The agreement perfectly complements the recently announced MOUs with Enertec Enterprises Ltd and Reveal Entertainment Inc.
A very important aspect of the agreement with Modern Brands includes a program of joint product
development across a broad range of product segments, capitalising on Brainytoys' product development capabilities and technology and Modern Brands' significant market position.
The partnership will provide a significant base for Brainytoys' activities as our Company continues to build its strategic position with high-quality marketing and distribution partners across world markets.
We are very pleased to enter into a partnership with Modern Brands, one of Australia's leading players in the field of toy and games marketing and distribution," Mr Aguero said.
Mr Jim Craddock, Modern Brands' Commercial Director said, "I am pleased to announce Modern Brands Pty Ltd has entered into a MOU with Brainytoys.
The partnership with Brainytoys will complement our product portfolio, and tailor perfectly into our existing marketing and distribution strategies across major and independent retail," said Mr Craddock.
"Modern Brands is one of the fastest growing toy and gift distributors in Australia and New Zealand having recently been awarded the GFK award for 'Fastest Growing Toy Distributor 2005'.
To maintain our growth we need to continually deliver new products and concepts to market," said Mr Craddock.
"The Brainytoys and Modern Brands partnership will grant us the opportunity to co-develop and deliver products designed specifically for the Australian and New Zealand market. Such product developments will be innovative, price sensitive, and have a perfect 'fit' to the 'hot' licenses and consumer ideals." said Mr Craddock.
"We are in a growing market, now valued over 1 Billion AUD, which is driven by trends and a 'need for new'.
The crazes and trends that we see in our industry are typically driven by innovation and technology.
Brainytoys has demonstrated an incredible ability to combine technology and innovation to create new toy concepts and reinvigorate traditional and existing toy concepts. We are looking forward to delivering the new concepts to market inside this year.
The product concepts and speed-to-market that Brainytoys has demonstrated to-date is nothing short of extraordinary and is well above and beyond the industry standard," Mr Craddock said.
"The first Brainytoys product range which Modern Brands will launch to market in the last half of 2006 is a completely new product concept and the range is perfectly positioned for the Infants/Pre-School super category.
The first series will be launched in generic designs as well as a number of global 'hot license properties' such as Thomas the Tank Engine and The Wiggles. The licensors are excited by the developments and we jointly believe we will see total market adoption from all key retailers," said Mr Craddock.
"In the coming months we will work with Brainytoys to develop products for the Infants/Preschool, Outdoor & Sports, Vehicles, Games & Puzzles and Building Sets retail super categories," he said.
"This partnership of understanding between Brainytoys and Modern Brands is the union of a capable marketeer and distributor with an accomplished inventor and product developer, which I believe will result in the development of a powerful toy brand and global product distribution across several toy categories.
We are genuinely excited by the opportunities and challenges that this partnership provides," Mr Craddock said.
