These were first given out on some of the older worlds as presents by Santa Claus during Christmas. Teddy Bears were also the prize for the global Teddy Bear Quest, presented by Tibianews and Rising Dragons. Nowadays Santa Claus randomly gives this item to players. It used to be rare when one was given out per server. Due to the Christmas Update 2006 they are given out a lot more and the value has dropped increasingly. During the Tibia 10th anniversary celebrations they could be received in Red Surprise Bags.
Looks the same as an Annihilation Bear.