The ‘Peanuts’ business empire looks to grow with Apple, other deals for a new generation of fans

Unlike their cartoon character rivals in Southern California, the “Peanuts” gang isn’t typically thought in the same league with Mickey and Co. as a massive business juggernaut.

There is no escaping the Walt Disney Co. with its theme parks, stores, TV channels, comic book franchises and various toys that are likely in every household, helping the Burbank-based company earn $81 billion in revenue in its last fiscal year.

But the reach of Peanuts Worldwide is extensive even if it isn’t as ubiquitous to the typical consumer compared to the big-eared mouse and his friends. In fact, the New York-based company that licenses Charlie Brown and his gang had approximately $2.5 billion in annual retail sales last year with global products that were originally created by the late Charles Schulz, whose 100th birthday is being celebrated this month.

The company’s mission isn’t to get a product placed on every retail shelf in the country nor jump on the latest trend to grow market share, said Tim Erickson, executive vice president of Peanuts Worldwide.

Instead, it’s all about the fans.

“Peanuts has always prided themselves on doing things that are really fan-centric,” said Erickson, who worked as a former executive at Disney, DreamWorks and 20th Century Fox. “For us, while we have a very robust business around the world, it's done with such purpose. It's such a focus, so it feels when you see it, it feels authentic.”

When in doubt on a potential deal, Erickson said it is not uncommon that his team ask one simple question among themselves: What would Sparky do? (Sparky was Schulz’s nickname.)

“It's great to have folks that have (worked with Schulz) and then you understand what Charles Schultz would have done,” Erickson said.

Thriving business locally, worldwide

Peanuts Worldwide is a partnership. WildBrain Ltd., a publicly traded company based in Canada, owns 41% while Sony Music Entertainment (Japan) Inc., which has an extensive music and animation portfolio; owns 39%. The Schulz family owns the remaining 20%.

Jean Schulz, the cartoonist’s wife of 27 years until his 1990 death, emphasized in a statement that “we spend a lot keeping Sparky’s brand true.”

Schulz is one of the principal investors in Sonoma Media Investments, owner of The Press Democrat.

Schulz added that the 40 internal employees “who work for Peanuts Worldwide are carefully vetted in the hiring process, not just for their business skills, but for their love of the comic strip and what the characters mean.”

But that doesn’t mean Peanuts Worldwide is gun-shy on deals.

The extensive product line from the company includes $500 million in sales for various holiday products. The licensing deals range from Pottery Barn plates to Hallmark greeting cards featuring such beloved characters as Snoopy, Linus van Pelt and even his crabby sister, Lucy.

The business empire also focuses on in-person experiences that include the 11 amusement parks in North America operated by the Cedar Fair Entertainment Co. and a location at Universal Studios Japan. Those parks feature a “Peanuts”-themed children's area with characters and rides that build upon the first Camp Snoopy that opened at Knott's Berry Farm in Buena Park in 1983.

There also is a burgeoning business of pop-up events across the country.

Social media, Apple TV+

Another major part of the business comes from the editorial content from Charles Schulz’s almost 18,000 comic strips and “Peanuts” TV specials, especially turning it into digital forms through such channels as Instagram, Twitter and Tik Tok. (Yes, the comic strip is still published in 2,000 newspapers and publications including The Press Democrat.)

The most ambitious venture in that realm has been its partnership with Apple Inc. that the company first struck in 2018, which resulted in Apple TV+ becoming the new home of “Peanuts” from the classic holiday specials to new shows tailored to a current generation such as “Snoopy in Space” and “The Snoopy Show.”

The Apple deal is ripe for growth, said Eric Ellenbogen, CEO of WildBrain, on a Sept. 14 conference call with analysts as he ticked off the burgeoning portfolio that includes four family specials, multiple seasons of two original “Peanuts” series, two original documentaries and 13 classic “Peanuts” specials.

“Apple TV is the greatest home ever for ‘Peanuts.’ And there is lot more to come in that pipeline,” Ellenbogen said.

There is, however, a balancing act as well given how much the cartoon characters continue to resonate for millions of fans. The team at Peanuts Worldwide is careful that they feel not excluded, especially as Apple TV+ requires a monthly subscription fee.

For example, Apple TV+ again this year will provide a free period for nonsubscribers to stream the classic holiday episodes. The “A Charlie Brown Thanksgiving” episode will be available Nov. 23-27. Viewers can access the episode through a separate web link that doesn’t require signing up for Apple TV+.

“We have the support of everybody to do right by the legacy and right by the fans first. We’re really fortunate. That is what are conversations primarily revolve around,” Erickson said.

Younger generations find ‘Peanuts’

That effort has extended to other new high-tech ventures, such as the Peanuts channel on the GoNoodle app. The content is focused on children to “take care” of themselves, each other and the planet through short videos on topics such as wellness and environmental protection. The deal is part of the company’s “Take Care With Peanuts initiative” to promote mindfulness.

The metrics have been impressive as there has been more than 220 million views of the videos on GoNoodle, which are available in 11 languages.

“Take Care aligns with the strip and the stories that Charles Schulz told. So once again, we look backward before we look forwards,” Erickson said. “We were able to take a look at the story lines that were created over the years and it naturally made sense to do this.”

The simple success of the “Peanuts” brand is that it can appeal to various generations, such as Gen X members wanting to maintain whatever hipness they have left with a nod to the nostalgia of their youth. For example, there is the company’s partnership with Converse shoes where sneakerheads can buy Chuck Taylor All-Star shoes that feature Snoopy and Woodstock in the design.

“These are collections that are typically for the whole family,” Erickson said of such efforts.

Even the team at Peanuts Worldwide can be surprised how some business ventures resonate beyond initial expectations given the strong fan base around the world. A recent merchandise partnership with Starbucks’ locations in Japan was such example.

The coffee company held an online sale of such branded products as tumblers, T-shirts and mugs that featured “Peanuts” characters. One example: a miniature bottle that featured Snoopy wearing a green Starbucks apron that are part of the wardrobe for store employees.

“They had never done anything with an animated character. This was a first for them,” Erickson said of Starbucks’ Japanese business unit.

The products sold out in a couple of hours and at one time there were 87,000 customers in an online queue to make a purchase, he said. A set of three of the Snoopy bottles from the promotion was listed for $270 on eBay earlier this month.

“That’s an example where you wouldn’t wake up necessarily and say, “I’m definitely going to see ‘Peanuts’ at a Starbucks.’ But this was a case where it was done so well and it’s done so authentically that it made sense,” Erickson said.