Sweet like KandyToys

KandyToys is heading into 2025 with a raft of new products within its best-selling ranges and a rebranding strategy that will both better serve its customers and help them to understand the company’s unique strengths within the toy industry. Rachael Simpson-Jones embarked on a road trip down to sunny Devon to meet with Freddie Martin, managing director, and James Carnell, commercial director, to find out more.

Shortly after arriving at KandyToys’ head office in Clyst St Mary, Exeter, strong black coffee in hand, I find myself in its cavernous showroom. Built during the pandemic with the money the company saved on exhibitions, the 10,000 square foot space plays host to all 25 of the company’s ranges, can easily accommodate multiple meetings at the same time - on opposite sides of the space, naturally - and being windowless, is illuminated with a healthy amount of overhead spotlights. (It is, as Freddie puts it, ‘so bright you could use it as an operating theatre’.) It contains row after row and aisle after aisle of toys, games, beach toys and more, laid out neatly to show them off to maximum effect. It works – I’m impressed.

Founded in 1978 by entrepreneurs David Kirkby and Andrew West, who started out distributing Pez Dispensers from a garage, KandyToys bills itself as the UK's leading importer of toys, beach goods, pools and gifts. Its ranges cover everything from dolls, pocket money and construction toys to body boards, footballs and beach towels, making it something of a one-stop shop for seaside retailers and a top supplier of affordably priced toys with very strong margins. One of Toymaster’s Top 5 suppliers, the company was given the independent buying group’s Supplier of the Year Award just two years into its relationship, in 2022. This is something Freddie is understandably very proud of, and the trophy is on display in the lobby.

Yet despite all this, he says there remains a misconception that KandyToys is just a wholesaler, not an importer. The company has a large number of wholesale customers, but is finding that more and more retailers are approaching it directly to capitalise on the opportunities it offers.

“I recently enjoyed a tour around Starlings Toys with Jon [Starling, owner], who showed me where KandyToys fits into his product mix,” explains Freddie. “What I saw was pretty typical: if branded products usually fill around 80% of a toy store, then ours can fill the remaining 20% - yet be just as profitable. KandyToys products are the perfect complement to ranges from some of the big household names. And if you’re a coastal or gift shop retailer, then we can also meet your needs with our beach, outdoor and sports toys.”

Despite the fact 2024 has been a challenging year for the toy industry, Freddie says: “We really believe that in the current tough marketplace there is no room to gamble on excessive mark-ups - there will be one chance to pitch for business and we have to take that chance at the first time of asking.” In practice, what this means is that while the price of some ranges has had to increase a percentage point or two as a result of sea freight costs, most costs have been absorbed by the company and prices have remained the same this year across much of the portfolio. Margins on products are very strong indeed, in some cases as much as 75%, which is a huge help to retailers looking to achieve a healthy margin mix across its entire portfolio. RRPs, meanwhile, are kept accessible to all, whether the shopper is a cash-strapped parent trying to treat their child or a six-year-old with pocket money burning a hole in their shorts. In part, this philosophy of making sure everyone can enjoy its toys stems from Freddie’s own background: his upbringing was humble and remembers what it was like to have limited funds for toys.

Within KandyToys’ 25 ranges, there are some standout best-sellers. The first is M.Y, which Freddie’s predecessor, former MD Gary Beswick, brought with him from his previous business. The M.Y brand is well known and recognised, enjoys particular success in Ireland and is represented in a good number of majors as well as at indies, where its outdoor toys and games appeal to shoppers with limited budgets. SupeRetro, meanwhile, is a range of classics such as yo-yos, playing cards, paddle ball boards, marbles and magic tricks that continues to grow year-onyear. SupeRetro is a top performer for Toymaster members and has also opened the door for KandyToys when it comes to majors and nationals.

Alongside pocket money toys, which continues to be a huge growth area for KandyToys, confectionery - especially the company’s Kandelicious range - is also a best-seller, and something toy retailers are increasingly branching out into in an effort to drive incremental sales. The company is also set up to design and manufacture bespoke toys and gifts, such as teddies, fridge magnets, hats and more, according to the needs of retailers. This has been very popular with theme and farm parks. KandyToys is a mere stone’s throw away from Crealy Theme Park & Resort, which stocks a wide range of these bespoke items. In Freddie’s view, this is something more retailers should be exploring.

New for this year, World of Science’s Exploration Express is an educational, STEM-leaning UK-exclusive range into which KandyToys is pouring significant effort and investment. It was launched at 2024’s Toymaster show to a hugely positive reception – Freddie says pretty much everyone who viewed it ordered it – and stock was on the water during our meeting, ready for delivery into KandyToys’ 246,000 square foot distribution centre.

KandyToys designs all its artwork, from its logos to its characters, in-house, under the watchful eye of its incredibly talented lead designer, John. Some of this artwork was on display in the meeting room. It’s undeniably impressive. Of course, John the designer is just one of a team of dedicated KandyToys employees. Year-round, a team of 85 works out of the Exeter HQ across its finance, design, warehouse, quality control and sales teams (this might swell to over 100 during peak season), while there are further full-time employees at its Hong Kong office and in Mainland China. It’s worth noting that the company has a remarkable record for employee retention: Freddie has been with KandyToys for 20 years, working his way from up from his role on the front desk, while James has been there 18 years and has worked in many different sectors of the business, from IT to QC. Despite this, they still wouldn’t rank among the Top 10 longest serving team members; KandyToys’ second ever employee still works out of the office. The first retired five years ago.

All this points to a company that cares. That care extends to KandyToys’ impact on the environment. The company is actively looking at ways to reduce the amount of virgin plastics it uses by turning to wheat-based bioplastics for products where its use won’t negatively impact product quality (every single product that comes through KandyToys is tested either in-house or externally) or price. It’s also transitioning to hybrid company vehicles and exploring the practicalities of installing solar panels on the roof of its buildings as well as rapid EV chargers in the car park.

What Freddie tells me next further reinforces KandyToys’ people-first ethos. “We’re always looking at opportunities for growth, but we’ve never done so at the expense of our customers,” he explains, telling me that for years, KandyToys actively avoided showcasing at major trade shows in case the influx of orders impacted its ability to serve those with whom it has existing relationships. This year though, the company took a very large stand at the Toymaster show in Harrogate, across the back wall of one of the marquees. Freddie’s love for the show (and the Toymaster team) is evident. He waxes lyrical about the buzz of the event, the friendliness of its visitors and the enthusiasm of the group’s members. Indeed, anyone who reads Toy Barnhaus’ Indie Viewpoint column each month will know that Stephen Barnes and Mark Buschhaus regularly mention KandyToys when listing their favourite products and suppliers (not least for margin).

Over the next 12 months, the company will be rolling out a subtle rebrand. Already, the company’s new ‘KTL’ logo appears on the company’s import marks, but customers will now see it on its non-branded ranges too (anything that doesn’t fall under an own brand name such as Nalu or Lullaby Baby) as well as its websites, POS solutions and more, bringing the whole range together under one banner.

“I’m far more optimistic about 2025 than I was at the start of this year,” adds Freddie. “The summer of 2023 was a washout and that led to a really tough 12 weeks, with lots of stock lingering in the marketplace coming into 2024 and a fair bit of buying caution. A lot of that has gone now and things are looking up. Stockrooms are emptier and there are far more opportunities out there to go after. We upsell our products, and retailers stand to make excellent margins from them. We’re here to help people make money. We’re launching 600 new products for 2025, and with 2024 behind us, we’re more than ready for the year ahead - reinvigorated and rebranded. Let’s go.”