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Hasbro-PEZ International Ink Deal for My Little Pony Treats

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Hasbro Inc. (HAS) has inked a global licensing agreement with PEZ International to manufacture My Little Pony-branded PEZ dispensers, PEZ dextrose fizzy candy and fizzy rolls. These products will cater to the sweet tooth of people in Germany, France and Austria in early 2015, while new markets will be added later. The newly introduced dispenser and candy will be displayed at Brand Licensing Europe in Olympia, London, which will run through Oct 9.

The PEZ dispensers will be based on Pinkie Pie, Twilight Sparkle and Rainbow Dash and the assorted fruit candy range will include a variety of flavors like lemon, strawberry, orange and cherry. The My Little Pony brand has garnered immense popularity among buyers of all ages. In fact, according to management, the brand generates more than $650 million in retail sales.

PEZ International, on the other hand, holds expertise in dispenser and candy innovation and commands a global consumer base. We believe Hasbro is seeking to capitalize on PEZ International industry-leading position.

Hasbro’s Girls’ Segment, which includes the My Little Pony brand, has historically seen strong results at the company. Hasbro’s consistent efforts to establish its presence worldwide through strategic partnerships and rapid growth in emerging markets has boosted the company’s top line. However, we believe consumer spending uncertainty still lingers amid sluggish economic growth in the U.S. that has resulted in customers cutting down on their non-essential purchases.

Hasbro currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Glu Mobile, Inc. (GLUU) with a Zacks Rank #2 (Buy). Skechers USA Inc. (SKX) and Nike, Inc. (NKE) are some other stocks that warrant a look in the broader consumer discretionary sector. Both these stocks sport a Zacks Rank #1 (Strong Buy).

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