L.O.L. Surprise! Unveils New Product Innovation: MGA CEO Discusses Sustainability
Jeff Fromm
Contributor
Expert on Millennials, Generation Z and the impact of purpose and sustainability.
Listen to article8 minutes
I had the chance to visit with MGA CEO & founder Isaac Larian. He is a pioneer in the toy and entertainment industry, and like many successful CEO’s, he knows he needs to navigate consumer culture changes to stay ahead of competition. At the same time, Larian is looking to make it easier for consumers to live a sustainable lifestyle.
L.O.L. Surprise is eliminating plastic in favor of paper to produce their iconic ball. The company ... [+]
PROVIDED BY L.O.L. SURPRISE
In my recent research and consulting work on sustainability, consumers expressed a desire to live a more sustainable lifestyle, which means brands need to make it affordable, accessible and easy to enjoy the products consumers’ want. Consumers also want to feel less guilt about their purchase decisions.
According to Mary Anne Hansan, President of the Paper & Packaging Board, “It’s encouraging to see more companies embrace materials like paper and paper-based packaging that are sustainable by design and that come from an abundant, renewable resource, forests, so you can do good for the planet.”
Jeff Fromm: What are the major trends in play?
Isaac Larian: The primary trends that MGA has invested and innovated around include:
Mental Health focus - Toys are part of the answer to engage kids in social development and play at home. Specifically, plush toys and games that promote mindfulness as well as fidget toys and tactile toys with a focus on soothing are a big trend, largely because of the COVID pandemic.
Creativity – In self-expression through art, but also through role play. As AI becomes an even larger component of kids’ toys, it is believed that use of such toys will develop critical thinking and creativity skills, which are critical areas for future employment and success. Toys that foster creativity in new ways will become more important to parents who want to prepare their kids for the future.
Gender Neutrality - I was recently interviewed by a reporter on this topic and how MGA will continue to include focus on breaking down gender stereotype into toys.
The Kidult Space - Teens and adults that did not previously buy toys have been buying them since the advent of COVID. It’s been fueled further by toy companies supplying toys that tap into nostalgia (five surprise mini brands), current and past entertainment (Lego sets, collectible figures for Game of Thrones, etc.) and a desire to express oneself through own likes. This could continue to grow as other categories in toys figure out how to appeal to adults.
Sustainability - Parents want to instill long-lasting values and educate their kids via their favorite toys. They also want to teach their children to take care of their environment. This trend will become critical in the manufacturing, packaging, and distribution of toys. The toy product itself will change and kids’ interest in sustainability will create new opportunities also; think recycling truck vs. garbage truck.
Fromm: How is MGA thinking about sustainability?
Larian: MGA has taken a variety of steps when thinking about sustainability. This movement is woven across everything we do. We put thought into our entire lifestyle at MGA from the inside out. So that translates into three areas of opportunity right now: actual toys, packaging and shipping and lifestyle and culture.
In toys, MGA has introduced products that fall into the green category like our Real Wood Adventure collection from Little Tikes. We also have entered the NFT and digital play world, eliminating waste by encouraging kids to explore the imaginative universe of their favorite L.O.L. toys online. This focus is woven throughout MGA globally, as demonstrated by our partners in Poland changing the floorboards in Cozy Coupes from yellow and pink to black to minimize waste and use recycled material. They also exclusively use carton boxes made from 100% recycled cardboard, turn 100% of production scraps back into production, as well as introduced a Go Green line of toys that are 92.3% made of recycled materials.
In packaging and shipping, our reusable packaging from Lalaloopsy and our Crazy Fast Car toy coming out this Fall are examples of toys with packaging that can be re-used for play. L.O.L. Surprise also introduced paper as a substitute to plastic across the blind bag packing. We also established an ongoing recycling partnership with Terracycle in 2019 across several regions globally, which allows fans to conveniently recycle L.O.L. Surprise! packaging. In 2021, we moved from plastic packaging for our Amazon shipments to all cardboard boxes. Also, we recently opened a plant in Mexico, which helps to shorten the supply chain and in turn reduces energy.
MGA has also actualized their sustainability initiatives across brands and content, with the launch of their Little Tikes’ Let’s Go Cozy Coupe episode that centers on recycling awareness as well as social content shared across MGA’s channels highlighting DIY tips and tricks for repurposing L.O.L. Surprise!™ packaging in creative ways.
From a lifestyle and culture perspective, MGA around the world is reducing its carbon footprint in the workplace. We have moved from buying and stocking plastic water bottles to instituting filtered water fountains and systems easy for reusable paper cups and glasses. Our utensils, plates and supplies are now bamboo or recycled paper products, and we encourage our employees to drive electric cars by offering charging stations across campuses globally.
We are vigilant and diligent about finding other ways to change the employee experience and commitment to driving sustainability.
Fromm: What do you think parents and kids want when thinking about having fun and engaging in learning?
Larian: Parents are focused on minimizing the damage by the pandemic to their children —in terms of mental health, social development, and educational preparedness. Parents are using toys to ensure children continue to develop social skills since so much face-to-face play has been taken from their day-to-day experience. Kids learn in a variety of ways – they see; therefore, they copy. They imagine and pretend; therefore, they create. They role play; therefore, they make up their own stories. Toys, games, (even entertainment) that engage, enable and teach them are fun and help them grow.
Fromm: How will MGA lead industry transformation to more paper-based solutions?
Larian: MGA has taken seriously the need to reduce our carbon footprint. And we realize that eliminating plastic and sustaining our progress is not easy, but it must be done. We have committed to two important goals, which we already have announced:
- To achieve and maintain 95% recycled or Forest Stewardship Council (FSC) - certified content in the paper and wood fiber used in our products and packaging.
- To achieve 100% recycled, recyclable or bio-based plastic materials in our products and packaging by 2025.