Hannover House Inc (HHSE)

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Walmart from January 2012 SHM

I missed the SH meeting but I could've sworn someone on here said that Fred said that Walmart sold out of the initial order and had to reorder the Turtle DVD.

It sold out in some Walmart stores and there were two small reorders, but Walmart did not sell out the whole shipment.

There's also interesting info from Eric on how Walmart's DVD section works.

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ERIC. I think a lot [?] of you know that the principal titles we had in 2011, the biggest one was Turtle: The Incredible Journey. We did a sponsorship co-release venture with SeaWorld Parks & Entertainment. It was the first venture for them in the film industry and with another company, and we were really happy with that, and we just recently expanded the relationship with SeaWorld by entering into a sublicense for museums and IMAX theatres for Turtle. The title just keeps going. And we now have our second re-order from Walmart or…?

FRED. Let’s be clear that the – yes, we do have two reorders of Turtle from Walmart so far. The second one is being replicated as we speak. It’ll ship next week. I want to be clear before I take your question, Jason, that the expanded relationship with SeaWorld, while we’re confident, is almost – it is going to be finished, there are still a couple of items that are currently being negotiated. So while we anticipate that it will be done next week, it’s not really finalized and signed as of yet.

Q. __________.

FRED. The first order was 17,500 or 18,000, I don’t remember which. Oh, no, I’m sorry, it was 20,000. The first order was 20,000. That included shipping to the Walmart DC’s, 17,500 or 18,000, I don’t remember, with warehousing 2,000. The first reorder was 1,000, and the second reorder was 2,000.

ERIC. So it’s not box office boffo numbers, but the fact that it’s holding its shelf space, and continuing to turn and get reorders is really encouraging. And as I’ve shared with some people, you know, we’re _____ now committed through February and we’ve got our fingers crossed that the title is held over for what’s called the February Modulars at Walmart. Three times a year Walmart resets its shelves and instead of being in the New Release section they have everything else. And that’s called the Modular, the everything else. And the good part about that is that the criteria, the threshold, to hold your shelf space in the Modular is far lower than the criteria to hold your shelf space in the New Release section. And every week since it hit Walmart stores, we have held our – we hit that threshold in the New Release section, and so it’s a real good sign that it will be moved over. It’s not assured that it will be moved over, but if it does move over it’s a real good sign it will hold that space and we’ll be in Walmart through June. And that’s really what we have to do with a title like this. If you look at comparable releases like the BBC Discovery Channel Planet Earth series, it has the same sales curve. It started off and then it just kept going. it didn’t ever, it never hit the Top 10, it never even hit the Top 40 until it finally hit 6 million videos. So we’re – we don’t know how big Turtle could be, but we’re encouraged by the fact that the retailers that have it, the ones that are reporting to us, are reporting that it’s holding its position and continuing to generate reorders, so that’s a good sign for us.

FRED. And it sold out in a number of stores within the first couple of days and that caused the replenishment of the warehouses. It sold over 30% in the first two-week period. It’s now sold over 50% of the amount that we’ve shipped. So we’re encouraged. And there’s no question that we’re going to build on that momentum with other retailers as well. And just the fact that it’s doing well at Walmart, being held over, is going to allow additional sales.