Precious Moments:
Precious Moments, Inc. (aka PMI) is an American company that distributes giftware since 2005. The company was initially formed in 1989 by illustrator, Samuel J. Butcher as a licensing company. The company is currently owned by two of Butcher's sons, Don and Jon. [1]
[edit] Company
From the early 1970s illustrator Sam Butcher, together with his partner Bill Biel, sold greeting cards at Christian book fairs under the company name of Jonathan & David (aka J&D). In 1977, J&D partnered with Eugene Freedman from Enesco, Corp. to sell giftware.
With the growing demand, J&D fully licensed the business to Enesco in 1986. Within a few years J&D was dissolved and Precious Moments, Inc. was formed in its place to expedite licensing agreements with Enesco.
During its contract with Enesco, PMI collected 15 million US dollars per year as the minimum licensing fee, which amounted to 80% of PMI's gross revenues.
In 1998, PMI delegated its copyright licensing function to United Media (aka UM), a wholly owned subsidiary of E. W. Scripps. During this arrangement, PMI held little responsibility to the licensing activities of its own intellectual property between 1998 and 2005. With UM as its licensing agent, PMI licensed its property out to more than 150 manufacturers and vendors.
In 2003, Trivest Partners, LP, an American investment firm based in Florida, attempted to buy out PMI. Instead the parties negotiated for a management contract for the licensing and theme park business. This brought in many new executives to the company, such as Dan Huwel. [2] Trivest's goal was to increase equity by corporate acquisitions and recapitalizations.[3]. For PMI, this meant recapturing the Precious Moments brand name from Enesco, reacquiring all design assets such as illustrators and sculptors, and gaining total control over the manufacturing and distribution supply chains.[4]
In 2004, PMI decided to cut itself off from Enesco—two years earlier than the terms of their licensing contract. The early move was due to falling sales by Enesco and its inability to generate the minimum licensing fee of 15 million US dollars.[5] As the Precious Moments brand was still accountable for most of its revenues, Enesco tried to renegotiate a contract with PMI - but with Trivest at its helm, the plan was to take the brand away from Enesco. In July 2005, PMI became the sole distributor for the Precious Moments products. In addition to its original licensing duties, the company's functions became product design, marketing, warehousing, and distribution.
In January 2006, Jon Butcher stepped down as president and CEO and PMI welcomed Byron Norfleet (previously president of the Naturalizer division of Brown Shoe) as its new CEO and president.
[edit] Chapel
In 1989, Sam Butcher used his profits from J&D to build his longtime dream - a chapel in Carthage, Missouri. Honored as the father of Precious Moments, he appears at some events in Carthage and occasionally at large scale collector club events. Sam Butcher currently resides in Aklan, Philippines and spends little time in the US.
The Precious Moments Chapel in Carthage was a theme park run by PMI. The "Chapel" itself was a structure within the park and was completed in 1989[6]. The land it stood on was owned by the Sam Butcher Foundation - personally owned by Sam Butcher.
The main attraction of the park was the "Fountain of Angels", incepted by Sam Butcher himself. The indoor attraction propelled water up to 80 feet high in sync to music, lights, and visual effects. Two separate performances were held every day from March through December.
In January 2007, PMI announced the discontinuation of its attractions including the "Fountain of Angels" due to "financial difficulties arising from diminished numbers in paid visitors due to higher gas prices and general decline of the brand". Other closures include the "Wedding Island", "The "RV Park", "The Gallery", and "Souper Sam’s". In Spring 2007, "The Gallery" was remodeled, renamed "The Samuel J. Butcher Museum" and reopened.[7]
[edit] Products
A clock with Precious Moments on its face.
A Precious Moments porcelain figurine.
Precious Moments porcelain ornament.
[edit] General
During the 1980s, Precious Moments was known as a series of collectible figurines. The product most closely associated with the brand are the porcelain figurines that has been in the market since 1977.
The original artwork was created by Sam Butcher in the 1970s. His artwork depict young children with distinctive teardrop-shaped eyes, and were often accompanied by inspirational messages which are also found on the products. Christian themes appeared throughout his work, as Butcher was a born-again Christian.
[edit] History
Sam Butcher originally started scribbling the now famous children with tear-drop shaped eyes on cards and letters to friends and families. Butcher and his friend Bill Biel started a small company under the name of Jonathan & David (J&D) to produce and sell his art on a line of cards and posters. J&D sold some greeting cards at flea markets but sales were meager and localized at first. The big break came at the Christian Booksellers Association Convention in Anaheim, California. Butcher remembers being so busy that they had to have neighboring vendors come over to help him and Biel fill orders.
Butcher's work was noticed by Enesco in 1975. Enesco searched for more than a year looking for a designer to satisfy Sam's vision. In 1977, the porcelain figurines were introduced to US retailers, and officially started its retail career in 1978.
At first, the porcelain figurines were sold under the J&D name, but during the mid 1980s (J&D under stamps can be found up until 1986), due to differences in business policies with Biel, J&D was dissolved. Enesco took over the distributorship from then on. Also around the same time, Butcher set up the "Sam Butcher Foundation" and "Precious Moments, Inc." By 1988, Enesco artists were drawing the production designs instead of Sam Butcher himself. This practice continued on after PMI's reign.[8]
Years passed, and according to the trade magazine Gift Beat, Precious Moments became one of the top porcelain collectible brand in the United States during the mid 1980s to 1990s. But in 1997, sales peaked and by the turn of the millennium, Enesco could not generate enough revenue to pay PMI it's minimum licensing fees of 15 million US dollars. Enesco attempted to renegotiate with PMI but was unsuccessful, and in 2005, the two companies went their separate ways.
[edit] See also
[edit] Sources
- Best Wishes of Boca. About Sam Butcher. http://www.bestwishes.net/bestwishes/absambutarof.html
- CIO Insight. "Building a Company, and its IT, in 90 days". Oct. 5, 2005. http://www.cioinsight.com/print_article2/0,1217,a=161677,00.asp
- Enesco, Corp. et al. Precious Moments Catalog.
- Enesco, Corp. Official Website. http://www.enesco.com/
- "First shipment marks a new era for Precious Moments". Carthage Press. Jul. 6, 2005.
- Martin, Laura C.; Jones, Carolyn (Photographer). Precious Moments Last Forever. Abbeville Press. Jan. 1, 1977 [ISBN 0-89660-083-1]
- Precious Moments Community. http://www.preciousmomentscommunity.com/
- Precious Moments Official Site. http://www.preciousmoments.com/
[edit] Footnotes
- ^ Missouri Secretary of State. "Corporate charters and annual reports". Retrieved on 2006-03-20.
- ^ CIO Insight (October 5, 2005). "Building a Company, and its IT, in 90 days". Retrieved on 2008-08-15.
- ^ Trivest Partners, L.P.. "Trivest Overview". Retrieved on 2008-09-05.
- ^ Trivest Partners, L.P.. "Investment Criteria". Retrieved on 2008-09-05.
- ^ Jargon, Julie, Ending deal to sell Precious Moments; Fragile sales of figurines prompt firm to terminate distribution license early, Crain's Chicago Business, May 30, 2005.
- ^ Precious Moments, Inc.. "Samuel J. Butcher Story". Retrieved on 2007-01-18.
- ^ Precious Moments, inc.. "Precious Moments Park Changes". Retrieved on 2007-06-29.
- ^ Precious Moments, Inc.. "How Precious Moments Figurines Are Made". Retrieved on 2008-08-31.
[edit] External links
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