PEOPLE : Hasbro’s Hassenfeld Steps Out of Brother’s Shadow

There’s something appropriate about Hasbro Inc.’s new line featuring New Kids on the Block. It’s the first venture that smacks of Alan Hassenfeld since he became the new man in charge.

Hassenfeld labored for years in the shadow of his older brother Stephen. His brother’s death of pneumonia last June at age 47, however, thrust Hassenfeld into the limelight as chairman and chief executive.

Although the younger Hassenfeld had worked in the company in various capacities for two decades, including president since 1984, there were some who doubted his credentials.

They wondered whether his experience as head of the international division had prepared him to run the nation’s largest toy company. But as Hasbro touts its 1990 products at the annual Toy Fair in New York, the reports are that he is doing fine.

In an interview during the toy trade show last week, Hassenfeld said several of Hasbro’s toys making their debut demonstrate that the company can respond quickly to what consumers want.

“I think New Kids very definitely is a fascinating new introduction for us--something that we had not been doing much of in the past,” he said of the line of dolls and accessories based on the popular singing group.

Berlin Wall commemorative puzzles from Hasbro’s Milton Bradley division also illustrate the company’s responsiveness, he said.

“I think it’s very important that we be very topical. It just shows that we can move and move very quickly.”

Industry analysts and Hasbro insiders say by going after a licensing pact with a hot group, such as New Kids, Hasbro signaled a new approach to doing business.

“I think a few years ago Hasbro might not have picked up a license like New Kids on the Block. That’s something Alan has accomplished, to his tribute,” said Al Verrecchia, one of Hasbro’s chief operating officers.

“Alan is putting his mark on the company very quickly, signaling that he is going to very aggressively manage it for growth in the 1990s,” said Paul Valentine, an analyst with Standard & Poor’s Corp.

“The promotional side of the business had suffered in recent years,” he said. “The company, as was the case with other large toy companies, had become more bureaucratic and less innovative.”

Some critics had faulted Hasbro in the past for resting on its laurels and relying too heavily on classics such as G.I. Joe, My Little Pony and the Game of Life.

“Alan is willing to try something that’s unorthodox and innovative,” Valentine said.

Another thing Hassenfeld has been able to do is squelch the takeover rumors that surfaced after his brother’s death.

“The odds of a takeover have been sharply reduced by the passage of time and the fact that Alan is very aggressively assuming control of the company,” Valentine said.

Hassenfeld said he has “no intentions whatsoever about moving away from this business.”

A 41-year-old with a boyish sense of fun and a disarming smile, Hassenfeld expressed devotion to the company founded by his grandfather, Henry, as Hassenfeld Bros. in 1923.

The founding Hassenfeld family owns 13.1% of Hasbro’s stock and has effective voting control over another 13.6%.

When Stephen Hassenfeld became chairman in 1980, the company, which also is parent of the Playskool division, had $102.3 million in revenue. Last year, revenue increased to $1.41 billion from $1.36 billion in 1988, and earnings were up 27% to $92 million from $72 million.

Hassenfeld, who studied creative writing at the University of Pennsylvania, seems to genuinely like what he’s doing.

“I’ve lived and died this business for over 21 years. It’s in my blood and I love it,” he said. “What other business could I be in, that part of the day I can honestly be that 7-year-old?”

He added impishly: “If you walked into my office and I was sitting on all fours playing . . . I could legitimately get away with it, and I could say I was product-testing or something.”