From Beanie Babies to everything collectible

Business First of Buffalo - by Annie Deck Business First

USA , November 29, 2007

What's up: Having a great idea is well and good, but it takes serendipity to make it come to fruition. The founders of Creative Plastics had both. In its very first year the company, now 2 years old, turned a bright idea into a million-dollar business.

Who's who: Kimberly Latko, president, started the company in February 1998 with her husband, Matt, an engineer with the New York State Thruway Authority. A friend had asked the couple to help work his Beanie Babies stand at the Walden Galleria during the holidays. The Latkos realized there was a huge market for clear cases that would display the stuffed toys.

"All of these people would ask for ways to store them, because they were paying all this money for a bear -- the Princess Bears were going for $200 then -- and they didn't want them to get dusty or get hurt," said Kim Latko.

The Latkos did some research. They learned that the only available cases had a seam that went right in front of the stuffed toy's head, so they set out to find a mold-maker who could build a better box. It took six months to perfect the design, but with the assistance of "some dynamite mold-makers," the Latkos were able to create a Beanie Babies display case out of clear Styrene.

Kim sent an e-mail message to every Beanie Babies dealer she could locate on the Internet, then put an ad in a collectibles trade magazine. Business "just kind of spread like wildfire," she said.

"We figured we would sell about 10,000 our first year, and we sold a million."

The Latkos started the company in their home but moved to their present location in Riverside a year ago. Kim quit her human resources job to handle the growing demand for their product.

Lynne Blinco, formerly a physical therapist, is vice president. Matt Latko is less involved in the company's day-to-day operations than he used to be but still serves as research and development consultant. Employment is six full-time and two part-time staff members.

Company history: The company has grown in stages. The company created a bigger case and added wood bases, pillows and "bear chairs" so clients could display their Beanie Babies more attractively. But they knew they'd have to evolve and expand their product line to stay competitive, since the Beanie Babies craze would not last forever.

Before she joined forces with the Latkos, Blinco made hand-painted crafts on the weekends. She knew the clear boxes would make great canvasses for her handiwork, but it was soon apparent that she could not keep up with the demand for hand-painted boxes.

The company purchased silk-screening equipment so they could imprint items with her designs. They now offer nearly 50 seasonal, special occasion and decorative designs for the boxes, and can print logos and other custom designs.

Creative Cases has branched into banners and signs. They also offer plush toys from bears embroidered with company names and logos to custom-designed baked potatoes and dinosaurs.

Creative Plastics is working on a bear for radio advice show maven Dr. Laura. The company will donate 250 bears to the Dr. Laura Foundation for its "My stuff bags," which are donated to abused and neglected children.

David Zaborny joined Creative Plastics in August. He knew the company could make a killing by expanding into custom- fabricated acrylic products: brochure and sign holders, risers and lecterns.

"That part of our business accounts for more than half of our sales," Latko said. "It absolutely exploded our business." Now the company's clients are not just gift shops, but major national hotel and restaurant chains.

Revenues: $1 million in 1998, $1.2 million last year.

Clients: Corporate customers include Best Western Hotels, Candy Express, Dexter Shoes, Hallmark Stores and Schonbek Worldwide Lighting. Local clients include Day Spring Enterprises and In Rooms Plus.

The partnership between Creative and Day Spring was a match made in Western New York heaven. Blinco learned about Day Spring, a Cheektowaga candymaker that makes Rainbow Pops, in an article on a local Web site. The profile mentioned that Day Spring was looking for an upscale desktop lollipop stand, and Blinco saw a perfect fit.

In a matter of weeks, Creative Plastics sent Day Spring President Roe Baran prototypes for an "upscale" acrylic lollipop holder and Day Spring launched the product at a recent gourmet food show in Los Angeles.

"It was very well received," said Baran. "I was most impressed with her immediate service."

Proudest moment in last 12 months: "Our first trade show," an international candy show in Philadelphia, said Latko. "One of the first buyers picked up our Hanukkah box and said, `I need 400 of these,' and that's how the whole show went. And that's when we knew we did something right. And she took 400 the next week, too."

Greatest challenge in last 12 months: "Keeping up with our growth," said Latko. "Sometimes you have questions and you don't know where to go."

There are times when: "We could just pinch ourselves," Blinco said.

"We have over 200 standard products we carry now, and there are times we just can't believe we started with the idea for a box," Latko said.

Dear Gov. Pataki: "Who does your campaign banners?" asks Latko. Blinco offers a suggestion: "A Pataki bear?"