Corporate giants in the US and interest from customers in the Asian and the South American markets are helping to drive the family owned business forward.
Around 40 staff work to make their tiny bears on site, using spun mohair, which is woven by the firm's fourth generation family-owned business partner of 87 years Laxtons Mill in Shropshire.
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The last British teddy maker is seeing a boost ahead of Brexit
Commentators may be predicting doom and gloom yet our business has survived 87 years of ups and downs
Merrythought director Sarah Holmes
Merrythought was set up after Laxtons Mill began operating in the 1930's and required a partner to help them make value out of their mohair cut-off surplus.
Now both companies are hopeful of a continued boost in trade as customers using foreign currency find the products cheaper to buy because of devaluation.
Kids find comfort from their teddy bear and the hand made ones last a lifetime
The quality teddy bears are made using mohair from South America which is currently bought in Euro currency and shipped form a trade partner in Germany.
However after Brexit companies in Britain will be able to trade individually with countries worldwide as the UK looks to try to implement as close to free trade agreements as it can.
Among the sought after bears are "punkie" and "cheeky" collections which are supremely popular in Japan.
The limited edition toy bears have sparked a storm with toy collectors rushing to get their hands on creations like "Cheeky Little" and "Punkie Sid."
The factory has been making bears for four generations
One client US manufacturing firm DAKS was also left stunned after a custom made 10ft bear created and flown almost 6000 miles from England to Tokyo caused amazement on the streets.
And even the royal family are fans of the bears with their Harry the hedgehog on sale in Highgrove and a 10-inch bear to celebrate HM The Queen's 90th birthday being popular with collectors.
Each of the bears is made from natural fabrics like cashmere and mohair as well as silk and organza ribbons.
British made teddy bears are feeling the benefits of Brexit
And that's helping to drive demand from luxury corporate clients who are creating bespoke gifts.
Indeed shirtmaker Turnbull and Asser recently commissioned the firm to work on a corporate gifting programme with private airline Netjets.
Merrythought has been making teddy bears since the 1930s
The Merrythought bears are able to move their arms and legs
Merrythought director Sarah Holmes, the great-granddaughter of the founder, said: "Limbo is never good for any business, but we have to take the bull by the horns and carry on.
"Our input costs may be going up but the weaker pound means our export market is thriving.
Theresa May's 12 point Brexit plan Mon, January 16, 2017
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Continued cooperation with the EU to tackle terrorism and international crime.
"Commentators may be predicting doom and gloom yet our business has survived 87 years of ups and downs.
"One thing's for sure – children always need teddy bears!"
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