J.K.Farnell was a family business that was founded in 1840 by John Kirby Farnell.  The company first specialised in the production of small silk household goods such as pincushions and tea cosies. On the death of John Farnell in 1897 his son and daughter, Henry and Agnes Farnell, moved the business from Notting Hill to Elm House, in Acton, West London. It was here they manufactured their very first teddy bears and soft toys. 

The first Farnell teddy bears had boot-button eyes, but the company was quick to change to hand-painted glass eyes. The most distinguishing feature of a Farnell teddy bear and one that is specific to British teddy bears were its webbed paws. As the demand for Farnell toys grew, in 1921 the company built on an extension, known as the Alpha works and from that moment on, Alpha became Farnell's trademark.