This article is from the PEZ candy and PEZ dispensers FAQ, by sharpe@dg-rtp.dg.com (Chris Sharpe) with numerous contributions by others.
This product is pictured on the back of some blister packs. The
picture shows a stuffed teddy bear from Dream Castle that actually
dispenses PEZ.
Here's the story: Dream Castle changed their name and were then
acquired by another company. During the transition, production of the
PEZ jewelry was stopped, but may resume. The teddy bear was never
formally produced due to a technical problem. There is still a chance
the bears will be produced, but they don't exist today. Once the
merger is complete, we'll just have to wait and see how things are
sorted out. They may make the jewelry and the bear, either one, or
neither.
Malibu Fun Stuffed, a division of Janex Corporation, is in the process
of making 3 "Candy Pals" for Christman 1996. The PEZ bear has been
scrapped, but the Candy Pals will be stuffed 12" versions of a
snowman, santa and panda. The toys will be holding a dispenser
identical to itself.
UPDATE: These "Candy Pals" didn't make it out for Christmas and the
latest is that the idea has been scrapped entirely.
 
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