DISNEY DROPS BEAN BAG CHARACTERS; SACKING MICKEY, MINNIE, DWARF CHARACTERS TO FREE SPACE FOR OTHERS.

Byline: Dave McNary Daily News Staff Writer

The Beanie wars heated up Thursday as entertainment giant Walt Disney Co. announced it would retire a dozen of its older Mini Bean Bag characters, including Mickey and Minnie.

The announcement means the entertainment giant, which started selling the plush toys at its Disney Stores last September and now has more than 80 versions, will stop producing the marquee duo along with the Seven Dwarfs and three characters from ``Bambi'' - Bambi, Thumper and Flower. Stock at the 660-plus stores will be sold at the usual $6 price until they run out.

Disney Stores President Thomas Heymann said the retirements - the company's first - will give the chain shelf space to introduce new characters. But Robert Brill II, manager of KC Kings collectibles store in Ventura, said the move is not surprising amid the collecting frenzy for the toys.

``We're seeing just about everything recognizable come onto the market, even things like the Energizer Bunny and Pillsbury Doughboy,'' Brill said. He estimated Disney's retirements would double their price at collector stores to the $20 range.

Disney's move comes following a three-week frenzy over McDonald's second Teenie Beanie Happy Meal campaign, in which an estimated 150 million toys were sold out in two week.

Some trackers believe the Beanie phenomenon is here to stay rather than being a hit-and-fade fad like POGs or Pet Rocks. But Harry Rinker, president of Rinker Enterprises and publisher of a guide to collectibles prices, believes the speculative bubble is collapsing because the market has been flooded.

``Prices are starting to fall at flea markets,'' Rinker said. ``In five years, no one's going to care.''

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PHOTO (color) Disney says it will stop making its Mini Bean Bag Seven Dwarfs.