Focus on Canada

A FOCUS ON CANADA’S LICENSING MARKETPLACE

Canada has the seventh-largest economy in the world and the Canadian economy is diverse and highly developed. It is, understandably, similar to the American economy only smaller in size.

The foundation of the Canadian economy is foreign trade and the United

Key Digital Numbers - Canada 2020

vs 2019

Population Mobile phone connections Internet Users

Active social media users 37.58m +0.9%

36.23m +5.2%

35.32m +2.8%

25.00m +3.8%

Canada Licensing Profile

2019 Retail Licensing Revenue (USD m) $8,633 3.90% 2019 Licensing Revenue Rank 6 0

Economics

GDP (USD Millions) $1,742,469 1.70% Consumer Spending (USD Millions) $1,353,861 2.10% Retail Sales change 1.50% Population 37,411,047 0.88% Average annual income $44,940 2.50% Licensing as percent of Consumer Spending 0.6%

Source: Licensing International

Top 10 E-Commerce Platforms in Canada Monthly visits

1 Amazon Canada 135.5m

2 Walmart Canada 37.7m

3 eBay Canada 4 Canada Tire 30.5m

26.3m

5 Best Buy Canada 6 Home Depot Canada 7 Costco Canada 21.4m

20.3m

20.3m

8 Etsy Canada 9 Hudson’s Bay 10 Norwegg Canada 13.5m

5.75m

States is by far the nation’s largest trade partner. Foreign trade is responsible for about 45 percent of the nation’s gross domestic product (GDP). Free trade agreements between the 2 nations have increased trade by eliminating tariffs. Each day approximately US$1 billion worth of goods crosses the U.S.-Canadian border. In fact, the United States sends more products to Canada than it does to all of Latin America. In terms of retail, despite the pandemic, retail sales in October last rose 0.37% from September, marking six months of clear increases since April’s dramatic decline as a result of the pandemic and the lockdown.. Core retail sales rose over 10% year on year with furnishings and home furnishings up 18.42%, food and beverage up 8.24% and sports, hobby, books and music up 19.38%. The only major category to see a downturn was clothing and accessories which contracted 12.04% over the year. Retail sales have, clearly been helped by internet and e-commerce shopping. Canada is one of the most sophisticated countries for online shopping. The major winners, of course, are some of the US giants but some Canadian companies still make it into the top ten.

Top Retailers in Canada

1 Weston Group 2 Wal-Mart 3 Costco 4 Empire Co 5 Metro Inc 6 McKesson Corp 7 Canadian Tire 8 Lowe’s Co 9 Home Depot 10 Home Hrdware

For more information contact Marinette Dalbard-Giraudel Tel: +33 6 1307 3485 marinette.dalbard@ kidzglobal.com

With nearly fifty years of expertise as a world-leading international producer, distributor and licensor of children’s animated and live action content, Nelvana is an established licensor and agent with experience in building and managing brands in Canada and on a global basis. With over 250 licensees globally, Nelvana’s full-service team excels at providing customized support across licensing sales, retail development, legal, finance (collections/forecasting), product approvals, creative services, digital strategy and more. Nelvana’s strong retail relationships revolve around their ‘boots on the ground’ approach, meeting with retail buyers and senior executives regularly. Based in Canada, Nelvana’s licensing team possesses unparalleled expertise in the Canadian market. With the ability to seamlessly align and amplify retail initiatives and marketing through coordination with Corus Entertainments’ programming team and the broader Corus business, Nelvana is equipped with a unique competitive advantage. In Canada, Nelvana represents 15 top-rated brands spanning preschool, girls, boys, young adults, adult lifestyle, and food, such as Hasbro’s Peppa Pig, PJ Masks, and Ricky Zoom, Sesame Workshop’s Sesame Street, Mattel’s Thomas & Friends, for which it’s also co-producing a 2D series for with Mattel; ADK Emotions’ Beyblade; Adult Swim’s Rick & Morty; Cartoon Network’s Powerpuff Girls; and Millimages’ Molang, as well as Spin Master’s Bakugan, a co-production with Nelvana, Spin Master and TMS Entertainment, that Nelvana supports with international distribution. In addition to its agency brands, Nelvana also markets and licenses its own brands, including the beloved Max & Ruby, action-adventure Ranger Rob, legendary Babar with The Clifford Ross Company, Redknot’s new series Agent Binky and latest live-action series, The Hardy Boys. Nelvana’s notable Canadian campaigns in 2020 include successfully launching a collaboration between Sesame Street and prominent Canadian department store chain, Hudson Bay Company and its iconic stripes in celebration of Hudson’s Bay’s 350th Anniversary and Sesame Street’s 50th anniversary, this past September 2020, featuring family sleepwear. In addition, Corus has partnered with Canadian influencer Extrasparklesplease and Canada’s biggest bookstore, Indigo for Peppa Pig promotions and events in Fall 2020 with Indigo Kids and exclusively launched Hasbro’s Ricky Zoom toys at Toys R Us Canada nationwide in Fall 2020. Nelvana has also partnered with Canadian designer Peace Collective to launch a Sesame Street collection.

As Nelvana prepares to celebrate its 50th anniversary in 2021, its licensing team is looking forward to even more fun and exciting new launches next year surrounding brands such as Peppa Pig, PJ Masks, Alexandra Gater and Pikwik Pack.

Headquartered in Canada, global entertainment company Boat Rocker Media has swiftly expanded over recent years and now operates in six countries. Harnessing the power of creativity and commerce to tell stories and build iconic brands for audiences around the world, it produces over 50 television series annually across scripted, unscripted, and kids & family content. Responding to this rapid growth, the company recently realigned its Studio offering. Designed to streamline its scripted operations and identify additional and exciting opportunities, the realignment will also allow greater focus on its Kids & Family division which is set for another exciting year in 2021. January saw the eagerly anticipated launch of its action-packed “pre-westoric” preschool animation, Dino Ranch, an irresistible blend of dinosaurs and adventurous ranch life. Debuting on Disney Junior in the US and CBC Kids in

Canada, the series will roll out globally across the year. Jazwares and Scholastic have signed for Master toy and English language publishing with initial product launching in Q4 in North America. Dino Ranch is Boat Rocker/Industrial Brothers’ latest collaboration with state broadcaster CBC and Radio Canada, following 3D-animated series Kingdom Force and Remy & Boo. Action series Kingdom Force follows the fast-paced exploits of five mighty animal heroes protecting citizens in five unique animal kingdoms, while the charming Remy & Boo tells of the unique friendship between an adventurous six-year-old girl and an incredible, squishy pink robot and their colorful adventures in Dolphin Bay. CBC also acquired Boat Rocker’s 2D animated comedy Love Monster, which launched on CBC Kids in September and on HBO Max in the US in December. Its first toy range from Golden Bear, launched in the UK this year and rolled out to Amazon and Smyths in January Additional partners include Amscan, Blues, Coneen and Dreamtex whose dress-up and apparel and bedding lines launch from Spring 21. Global hit The Next Step, the phenomenally successful tween reality dance drama, can also be seen on the national broadcaster. Boat Rocker has forged collaborative relationships with leading broadcasters around the world and in the UK has worked with the BBC on a number of high-profile projects including Love Monster, The Next Step and break-out hit teen drama Get Even. A number of licensees have stepped up to sign licenses for The Next Step including a hugely successful partnership with Pineapple Dance Studios covering TNS themed workshops and co-branded apparel, available online at Pineapple’s website, at the Pineapple official store and online at Next. Sweet Cherry hold the UK publishing rights and Danilo produce an annual calendar.

Toronto-based 9 Story Brands has announced the expansion of its international licensing program for the hit series Wild Kratts. Denmark-based company Björna will be producing an extensive Wild Kratts home and apparel line, launching in Denmark, Sweden, Finland, Norway and Iceland as well as all Jysk locations worldwide (excluding North America). The new line from Björna will include bedding, towels, cushions, fleece, socks, nightwear, shorts/skirts/dress, t-shirts, sweat clothes, bags, slippers and more, and will begin to roll out in spring 2021. Wild Kratts has also recently expanded its reach in Germany where the series has aired on SuperRTL since 2012. Both SuperRTL and Edel Kids picked up rights to Season 4, and renewed seasons 1-3. Wild Kratts has tremendous global reach, airing in over 180 countries across 18 different languages, and has over 25 licensing partners globally including an extensive product line available at Whole Foods. Wild Kratts was created and developed by brothers and zoologists Martin and Chris Kratt, who star in the show as animated versions of themselves. The series is a co-production between the Kratt Brothers Company and 9 Story Media Group. Premiering on PBS KIDS in the U.S. in 2011 and on TVO, Knowledge Network and Télé-Quebec in Canada, Wild Kratts is currently in its 6th season. The series also has various seasons under license to Discovery Kids (Latin America, Ireland, UK, India and Asia), Pop (U.K.), RTE (Ireland), Sky UK (Ireland, UK), Minimax (Eastern Europe), DR (Denmark), RTBF (Belgium), VRT (Belgium), MTVA (Hungary), JimJam (Poland), Contentica (Russia), CTC Media (Russia), Canal Panda (Spain), TVC (Spain), SIC (Portugal), Canal 22 (Mexico), SERTV (Panama), Encripta (Brazil), Pluto TV (Caribbean), MediaCorp (Singapore), TVB (Hong Kong), PCCW Media (Hong Kong, Macao), Pacific Media Group (China), Familia Play (Columbia), Canal Futura (Brazil), Minika (Turkey), Showmax (Africa), Jeem TV (Middle East), E-Junior (UAE), Noga (Israel), Netflix (Multi-territory) and Azoomee (Multi-territory). The Kratt Brothers (illustrated left) leap into animated action in Wild Kratts, a half hour adventure comedy from the creators of the hit shows Kratt’s Creatures and Zoboomafoo. In each episode, Chris and Martin Kratt travel to a different corner of the world to meet amazing new animals. Join the Wild Kratts for a laugh-out-loud comedy adventure, as Martin and Chris activate their Creature Power Suits to rescue their animal friends! 9 Story Brands is the dedicated brand management and consumer products division of 9 Story Media Group, a leading content creator, producer and distributor of kids and family focused intellectual property. 9 Story Brands builds international entertainment brands for kids, with expertise across creative, brand marketing and licensing. The company also manages merchandising rights for top children’s properties including Daniel Tiger’s Neighborhood, Clifford The Big Red Dog, Colorforms, Wild Kratts, Super Why and Karma’s World.

Genius Brands International recently announced plans for a transformative acquisition of ChizComm Ltd., a leading North American marketing and media agency, as well as ChizComm Beacon Media, its best-in-class media research, planning and buying division. Canada-headquartered ChizComm is the largest purchaser of children’s media across both traditional and digital platforms in North America, as well as a leader in PR, media, and marketing within the kids/family media and consumer product sectors. Founded by Harold and Jennifer Chizick in 2013, with offices in New Jersey, Los Angeles, and Toronto, the company represents more than 30 major toy companies and some of the most powerful and iconic brands in the children and family media and toy industries. ChizComm Beacon Media has consistently been ranked the largest media buyer within the Kids 2-11 age group, representing over 32% of total Gross Rating Points (GRPs). ChizComm Beacon Media has gained market share year-to-date, and now represents 34% of the total GRPs within the Kids 2-11 demographic. The company’s unique purchasing power and extensive media relationships across networks, including Viacom, Warner Media, Disney, YouTube and other digital platforms, offer clients an unmatched competitive advantage and access to audiences of all ages. Well known for its growth, track record and extensive expertise in toy, kids entertainment, gaming and related industries, ChizComm’s comprehensive integrated marketing approach and deep understanding of kids, youth, millennials and parents help brands connect with audiences to drive growth and make noise using PR, social media, influencer marketing, and paid media strategies. The addition of marketing and media buying expertise positions the Company to create synergies and fuel new opportunities with broadcast clients and toy companies, for innovative offerings, reach and engagement in a rapidly evolving landscape as well as fueling the growth of Kartoon! Channel. As a part of the transaction, ChizComm Ltd and ChizComm Beacon Media will continue to operate as independent divisions of Genius Brands, under the leadership of Harold Chizick as CEO, Jennifer Chizick as COO, Donna MacNeil as President, and Kathleen Campisano as ChizComm Global CMO and GM of ChizComm Beacon Media.

True and the Rainbow Kingdom is the hit Netflix Original series produced by Guru Studio and executive produced by world renowned artist Pharrell Williams. The series follows 8-year-old True and her best friend Bartleby the cat, as they come to the rescue of the Rainbow Kingdom’s whimsical citizens. True is the only one that can unleash the power of the Magical Wishes from the Wishing Tree in order to set things right and keep all the residents safe. True and Bartleby’s adventures empower both boys and girls to be mindful, courageous and respectful of all living things. The show launched in Canada on CBC Kids in 2018 and very quickly became a top-rated show for the public broadcaster. The fourth season is currently on air which features a collection of full episodes, comedic shorts, seasonal episodes (Halloween, Thanksgiving), as well as a 44-minute Holiday special True: Winter Wishes which launched Dec 24th on CBC Kids. In Canada, Chouette Publishing handles publishing rights and True and the Rainbow Kingdom is currently one of their top performing entertainment licenses. The first line of books that were launched were 8 x 8 storybooks, but Chouette has been adding more SKUs each season including early readers, look & find, sticker books and activity books. Books are currently sold at Indigo, Amazon.ca, and Walmart, with various promotions running at Shoppers, Loblaws and London Drugs. “True and the Rainbow Kingdom is a perfect brand for publishers because of all the amazing content in the series!” says Simon Payette, General Manager of Chouette Publishing. “The series originated from a collective of artists… a dream for a publisher! We have released more than 10 titles of True in less than 2 years. It’s about one every other month! It needs to be a very strong brand to be able to release such an important number of titles in such a short period of time. True is a great brand to foster our creativity!” In addition to books, world leading plush manufacturer Aurora World has produced a line of bestselling plush based on the hit series, and Spirit Halloween, Fun.com and Studio Halloween all handle costumes. Guru Studio will be announcing a new toy partner for the brand soon, with toys set to launch later next year. True Tunes, the album launched last year in Canada generated over one hundred thousand streams in its first month. The album is currently available on Spotify, Apple Music and Amazon Music. “We’re seeing tremendous enthusiasm for True and the

Rainbow Kingdom in Canada,” said Jonathan Abraham, VP of Sales and Business Development at Guru Studio. “The show continues to rate extremely well and we’re looking forward to expanding our licensing program both in Canada and around the world.”

JAM Brands is a licensing consultancy that focuses on the development and management of lifestyle licensing programs. They bring their in-depth understanding of intellectual property, marketing and product development, to effectively join brand owners with licensees to build successful licensing strategies, programs and product extensions. JAM Brands currently represents Kensingon Market Street Food on a worldwide basis as well as Elle, Laura Ashley and Pantone for licensing in Canada. Drawing on the rich cultural and culinary heritage of this unique neighbourhood, Kensington Market Street Food brings foods and culinary experiences to those searing for powerful flavours and multi ethnic tastes. This young brand is experiencing dynamic growth. ELLE is the most recent brand added to the JAM Brands portfolio. ELLE is the world’s largest fashion magazine and media brand, celebrating 75 years in 2020! Since 1945, ELLE has been a unique platform for women. Beyond fashion and style, ELLE has always focused on topics such as arts, culture and the place of women in society. For 75 years, ELLE has transcribed powerful stories of women from all horizons and shared their views in 45 ELLE magazine editions worldwide and 25 ELLE Décor magazine editions. With a solid licensing business including hundreds of licensees worldwide and well-established and diversified distribution channels, it is an iconic brand that is recognized everywhere as a respected authority on fashion, beauty, décor and lifestyle. Laura Ashley is the quintessential English lifestyle brand inspired by a rich 60+ year design heritage. Laura Ashley is timeless, classic yet contemporary, and relevant in today’s modern world. Well known for its distinctive feminine floral designs, the brand is well recognized and loved worldwide, boasting 88% brand awareness. With many current licenses in ladies’ and children’s apparel and accessories, as well as home furnishings and accessories, there are still many layers of opportunity in licensing this brand for North America and beyond. In addition to coloring our world and constantly improving and evolving the field of color communication, Pantone is the color platform upon which our interiors, exteriors, fashions and home products are created and manufactured. Pantone collaborates with corporations on color consistency, directs designers on colors and trends, and licenses designer-inspired products for consumers around the world.

Located in Toronto, Canada, the Art Gallery of Ontario (AGO) is one of the largest art museums in North America. Their museum is home to over 100,000 works of art, from the vast body of signature Canadian and Indigenous works, and cutting edge contemporary art, to European Masters including Peter Paul Rubens’ masterpiece The Massacre of The Innocents. Their photography collection spans the history of the medium from the 1840’s to present day. In 2002, Ken Thomson’s generous gift of 2,000 remarkable works of Canadian and European art inspired Transformation AGO, an innovative architectural expansion by world-renowned architect Frank Gehry. Traditionally, the focus for the AGO has largely been with regional and national licensing partners typical within the museum and heritage community in Canada. They are now working with clients to help us engage a global audience with iconic Canadian imagery as well as the international artists and art held in their Collection. Their institutional mission is bringing people together with art to see, experience and understand the world in new ways. With that as a guiding principle, they are modernizing their business to reach new audiences, expand product categories and territories, including the inspired by design category.

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