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.

Some baskets had male themes; others had female themes. Retail prices for the final product ranged from $4 to $13, Splitek said.

Easter basket sales grew reliably at Sherwood, which distributes a variety of cookies and confections as well as holiday baskets, but executives wanted to become a bigger player in the estimated $90 million-a-year industry. The company had already used licensed products for its Christmas gift sets. So it tried the same tactic for Easter.

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Gadgets vs. candy
It focused its branded Easter baskets on a handful of time-tested national brand names such as NASCAR and Spider-Man. Candy plays a supporting role in these baskets. There are generally five or six small packages, such as Sherwood's Fruit Bursts and Wonka's Shock Tarts, which are dwarfed by the toys stacked above them.

Splitek said consumer research shows the first priority for shoppers is the gadgets in the middle of the basket. "Candy is pretty low on the list," he said.

Sherwood pays a premium to use the branded products -- a flat fee to each licensor and additional royalties on sales of licensed products above a certain dollar figure.

With the exception of some candy, nearly all of the baskets' components are manufactured overseas to reduce costs and maximize profits. The candy, branded products and basket are put together in the United States and shipped out to pharmacies, grocery stores and discount chains.

Sherwood executives said the introduction of branded Easter baskets has boosted sales, but they declined to cite specific figures. Splitek said Easter basket sales represent a "significant" part of Sherwood's business. The company had sales of $45.8 million in 2004.

Nancy Bailey, chairwoman of Nancy Bailey & Associates Inc., a licensing agency, predicts consumer appetite for branded Easter baskets will grow because "generic baskets just don't have the appeal of Barbie, M&M and NASCAR."

Wal-Mart, the nation's largest retailer, now carries at least a dozen branded Easter baskets, citing their "growing popularity" with customers, spokeswoman Karen Burk said.

‘American Girl’ baskets
And parents, catering to their children's desire for certain items, are even putting together their own themed baskets. Paulk, the magazine publisher, is assembling an American Girl doll basket for her 8-year-old daughter. It will have books along with a typewriter, pencils and stationery for the Kit doll.

Paulk said adults are giving more candy to other adults and less to children.

"With kids, it's 'let's not rot their teeth,' " she said. "With adults, it's 'what the heck.' "

On a recent trip to the Wal-Mart in Germantown, Leslee Hayes bought two of the branded Easter baskets -- one with a Scooby-Doo theme for $14.96, the other with an M&M theme for $19.94.

"He is big into Scooby-Doo," said the Gaithersburg resident, pointing to one of her sons. Hayes said she would make an Easter basket on her own but there is no time. "This is so much easier."

Carol Forman called the Scooby-Doo and NASCAR baskets "too prepackaged." The 45-year-old mother of four prefers to make her own gift baskets every year.

But she sees the allure. "My kids would love them," she conceded.

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