In search of: The original Teddy Bear

The best friend of children almost everywhere is celebrating his 100th birthday. Ryan Levitt goes to the German town of Giengen, where the furry tale began

If you go down to the woods today, you're in for a big surprise. Teddy bears around the world are gearing up to celebrate their 100th "bearthday" and a host of festivities is planned for the occasion. You might think that the beloved infant's companion is older than it actually is, but this popular fixture of the British nursery came into its own only at the turn of the 20th century. So banish Barbie and avoid Action Man, because 2002 is the year of Paddington, Rupert and Pooh. They may have lost a little stuffing and a lot of fur, but teddies are as well loved today as they were when the first ones appeared in 1902. Perhaps a picnic is in order?

So where can I find teddy bears?

While teddy bears can be found all around the world, you have to go to the little town of Giengen in Germany to trace the roots of the first one. Giengen is the home of the Steiff Manufacturing Company where Richard Steiff, a nephew of the original manufacturer, Margarete, drew and produced the world's first jointed toy bear.

But how did they come up with the name Teddy? It doesn't sound very German to me.

This is where the controversy about his origins comes in. According to legend, the former American President Theodore Roosevelt once went hunting in Mississippi. Unable to shoot anything during his trip, locals tied a bear to a tree to help Roosevelt to bag a prize. Refusing to shoot a helpless animal, the scene inspired the Mitchom Family of the Ideal Novelty & Toy Company in New York to start producing commemorative "Teddy Bears". Germany may have made the first ones, but Americans came up with the name.

Where do teddies come from today?

Well, when a boy teddy and a girl teddy fall in love... no, just kidding. Teddy bears are still made at the Steiff factory in Giengen – and tourists can tour the site where the world's most important best friends and silent confidants are produced.

So it's a bit like a giant teddy bear maternity ward?

Not quite. In addition to its working factory, Steiff has a museum in which some of the world's most important teddies are gathered. Situated inside a squat, glass building designed by Richard Steiff, the structure is a temple to teddydom with more than 500 bears on display at any one time, drawn from an archive of at least 15,000. Visitors to Steiff – and there are more than 40,000 every year – get to see the step-by-step process that goes into making a teddy bear. There are about 30 stages, from stitching on noses to adding foot pads and everything in between – right down to fluffing the tummies. Much of the work done at Steiff is done by hand, which is what makes them valuable collectibles.

People collect teddy bears? I only have the one from when I was little.

You'd be wise to hold on to it then. Teddy bears can be worth a lot, depending on who made them and when, and the condition they are in. The world's most expensive bear sold for more than £130,000. Christie's even has a specialist who works almost exclusively on finding bears for its twice yearly teddy bear sales. The next teddy bear auction at Christie's will be a special 100th birthday commemorative sale, and will be held on 3 December at their South Kensington auction house in London, just in time for Christmas.

Why go to all the way to Germany for a bear when I can buy one right here?

Steiff teddy bears are invariably the world's most expensive bears, thanks to the quality of manufacturing. As well as being the first company to make teddies, it also produces a number of limited- edition specialities that increase in value because of their exclusivity. The Steiff Museum Bear, complete with the trademark button in the ear, is available only from the Giengen museum, and as such is a major incentive for many people to visit the little German town each year. The bear you buy today may one day pay your children's university fees. But don't try telling them that while they're still drooling on it in the crib.

I'd better make sure the baby doesn't chew its ears off, then.

Don't worry. It's not like putting a Monet in your child's playpen. Teddies are made to be loved, after all. "My favourite bear is a German bear that was never removed from its box," says Catherine Howell of the Bethnal Green Museum of Childhood in east London. "His expression is just so incredibly sad because no child has ever had a chance to love him." And Howell should know bears; being the curator of "Teddy Bear Story – 100 Years of the Teddy Bear". This exhibition can be seen at the Liverpool Museum until 23 February 2003, and will then move back to its home in Bethnal Green in March. Sponsored in part by Steiff, it will give Brits a chance to see some of the treasures usually available for viewing only at the Giengen museum.

Are there any British museums I can check out before I commit to the full Steiff experience?

Gyles Brandreth – the journalist, entertainer and ex-Tory MP – owns Britain's most well-known museum dedicated to the art of the teddy bear, in Stratford-upon-Avon. Among its extensive collection are the first television Paddington, Super Ted and, of course, Sooty.

Any recommendations when booking my trip to Giengen?

The best hotel in town is the family-friendly Hotel Lamm on Markstrasse 17-19 (0049 7322 96780). Rooms start at €41 (£26) for a single and go up to €92 (£58) for a more spacious apartment. The closest airport to the Steiff factory is Munich International. Lufthansa (0845 773 7747; www.lufthansa.com) has a number of specials available for travel in November, with a return fare starting at £89 from Heathrow. If driving from Munich, take the A8 to Giengen ad Brenz and follow the signs to the Rathaus. The factory is almost directly across the street, at Alleenstrasse 2.