The result has been a surge of Easter baskets using licensed toys and sports names. Sherwood's vice president of sales, Paul Splitek, estimated that 30 percent of all prepared Easter baskets sold this year will be branded, up from 15 percent two years ago.
"It's a big change in a very stagnant industry," said Glass of Houston Harvest, a privately held company in Franklin Park, Ill., that competes with Sherwood.
NASCAR rather than bunnies, chicks and eggs is the theme of this Easter basket. Prepackaged baskets of brand-name merchandise cater to time-pressed parents.
(Julia Ewan -- The Washington Post)
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The growth has also triggered a fierce battle over unclaimed brands, with Sherwood, Houston Harvest and several other companies vying to fill their baskets with the same hot products.
"There is now a mad scramble to secure the best licenses," Glass said.
So far, several major players have emerged.
Houston Harvest has struck deals to use household names such as Batman and Scooby-Doo, Teenage Mutant Ninja Turtles and the Bratz line of dolls.
Sherwood, a public company, has agreements to use Spider-Man, NASCAR and Animal Planet, a unit of Discovery Communications Inc. that produces shows about animals.
And Megatoys, a private company in Los Angeles, has a license to use the M&M name; Peeps, the marshmallow treats; and two children's games, Pokemon and Yu-Gi-Oh, according to Charles Woo, the company's chief executive.
In a sign of just how heated the competition has become, all three companies have won access to the NASCAR brand for their Easter baskets. Sherwood has a direct license agreement with the racing league, while Houston Harvest and Megatoys have deals with NASCAR partners, executives say.
Such licensing battles represent a major shift in the industry. Five years ago, companies like Sherwood filled their Easter baskets with generic porcelain dolls and plush toys.
