Hi, I am pretty bullish too, but don’t know about a $20 million...

Hi,
I am pretty bullish too, but don’t know about a $20 million profit Livas.



Would be great, but not likely this year ;) Profit predictions can only be guesstimates at this stage. Some toy companies are doing better than others despite difficult times, so it will come down to the products and imo we have a real winner with the marshmallow line.



I have been looking at the Nerf shooters from Hasbro which I reckon gives a good look to the potential market size for the marshmallow shooters. The marshmallow shooters are in a similar space to Hasbro’s Nerf guns, which shoot foam pellets - not as sweet as and way chewier than marshmallows!



Not exactly the same product but close enough and sharing the same retail space.



Hasbro says they sold $100 million worth of Nerf products in 2006 and Hasbro reported that sales surged in 2007 by 72% - So that indicates a substantial market of $150 - $200+ million worldwide.



According to latest BRT announcements the marshmallow shooters are starting to be picked up by mass retailers in the US; if so then they are gaining acceptance in spite of this huge Nerf competitor. Remember that Nerfs have been around for a long time and the marshmallow shooters are relatively new on the scene, they are still a novelty in the market, which is a plus.



My conclusion then is that we have a target market of up to $200 million in this sector and that the acceptance of the marshmallow line by mass retailers in the US plus new markets opening up (Australia/NZ/UK/EU) tells me that we are at the beginning of a breakout for the marshmallow shooters with a fair bit of upside before the fad runs out, if at all.



So we can all dream about how much market share we will take from Hasbro’s Nerfs! Anyway, much more fun to shoot marshmallows than foam pellets.



Hasbro PR



http://www.hasbro.com/media/content/printable.cfm?release=618



PAWTUCKET, RI – February 14, 2008 – …. The NERF brand has enjoyed strong growth over the past several years, with 2006 sales in excess of $100 million.



Reuters


http://www.reuters.com/article/industryNews/idUSN2419433020070425

Hasbro, Mattel results leave toy industry smiling


NEW YORK (Reuters) Tue Apr 24, 2007- …Both companies blew past Wall Street's expectations for the quarter, on the strength of higher sales for core brands such as Mattel's Hot Wheels and Hasbro's Nerf…

…Hasbro's revenue rise was also buoyed by a 72 percent surge in Nerf sales…