DES MOINES, IOWA McDonald's to use McKids line to promote various products

McDonald's plans to sell more toys and clothes under the McKids brand.
DOW JONES NEWSWIRES
DES MOINES, Iowa -- If you think that McKids are youngsters munching on Happy Meals, think again.
McDonald's Corp. plans to put "McKids," a word it owns, on a slew of products -- from toys to apparel to interactive DVDs -- as part of a broad, new marketing initiative to make the fast-food giant's presence even more ubiquitous.
"It helps us establish McDonald's as more than a trademark -- we call it a trustmark," Larry Light, the company's chief global marketing officer, said of the licensing campaign's intent.
The effort significantly expands a long-standing but limited merchandising program that featured a line of McKids children's clothing sold only at Wal-Mart Stores Inc., along with some toys and games available through various retailers.
The exclusive arrangement with Wal-Mart, the world's largest retailer, will end as McDonald's extends distribution of McKids items around the world, Light said.
Besides the United States, countries already targeted for the licensed products include Canada, Mexico, Australia, China, Japan, South Korea and Taiwan.
Financial gain
Despite its reach, McKids won't be a major revenue generator for McDonald's.
"This is very small," company spokeswoman Anna Rozenich said. "It's more about brand-building ... [and] new ways to connect with our customers."
Light wouldn't disclose financial targets but said, "We would not be doing this if it was going to lose money."
The company said it is in "active discussions" with a number of potential partners around the world.
Products such as interactive books and videos designed to "get kids on their feet," as the company put it, will begin to appear early next year. Bicycles, jungle gyms and other possible outdoor activity products will roll out in the United States as summer approaches, McDonald's said.