The tag does not fold open and is referred to as a Generation 1 tag. Shortly afterwards, the second version of heart tag appears on the Beanie Babies . This tag is often referred to as a double tag or Generation 2 tag. Later in the year, Teddy is redesigned to have a round face and a ribbon around the neck. Sales in the first year are growing, but still not remarkable.
Sales expand to specialty gift shops in the southern U.S. resort areas.
1995 Sales expand to the East coast, West coast, and scattered shops throughout the rest of the country. In the summer, demand for the Beanie Babies begins to take off. No advertising is required as word of mouth spreads rapidly about the hot new toy. Stores have problems keeping Beanie Babies in stock as Ty leases three airliners to rush a special shipment from overseas to the stores in time for the Easter holiday. Ty begins the policy of officially retiring Beanie Babies with the introduction of the Ty web site.