Lots-O'-Huggin' Bear (voiced by Ned Beatty) (Lotso for short) is a plush, pink teddy bear with a purple nose, and a sweet strawberry scent. He uses a wooden toy mallet as a cane. He is the main antagonist of Toy Story 3 and the leader of Sunnyside Daycare Center, where he at first acts like a kind hearted and wise caretaker, but in reality, he acts much like a ruthless prison warden. He assigns the Toys to the Catepillar Room, where they are roughly played with by the youngest kids in the daycare. He and his gang ride around the daycare in a big yellow dump truck.
Lotso is the leader of the toys of the Sunnyside Daycare Center and serves as the main antagonist of the third film. He initially acts like a kind-hearted and wise caretaker, but in reality, he acts much like a ruthless warden, although his backstory makes him more of a tragic villain. He is first seen welcoming Andy's toys to Sunnyside and assigning them to the Caterpillar Room, where they are roughly played with by the youngest kids in the daycare. He and his gang ride around the daycare in a big yellow dump truck.
At Bonnie's house, Woody learns from Chuckles the Clown that he, Lotso and Big Baby were once owned and loved by a girl named Daisy, with Lotso being the 'special one' to her. During their time with Daisy, Lotso was considered as a kind-hearted friend to both Chuckles and Big Baby.
Eventually, it all started to change when Daisy and her family had lunch in the countryside. When Daisy fell asleep, her parents put her into the car, forgetting the toys. Acting with hope on his side, Lotso managed to lead his two friends back to Daisy's house, but he and Chuckles later discovered that Daisy had gotten another Lots-O'-Huggin' Bear from her parents. This leaves Lotso heartbroken, convincing him that he had been forgotten and replaced, which would explain why he became so heartless, cruel, and merciless.
Out of bitterness of being replaced, the angry toy lies to Big Baby that he too has been replaced and they moved away from Daisy's home. Chuckles tries to reason with Lotso, but is unable to do so and was forced to leave with Lotso and Big Baby. At that time, Lotso discovers Sunnyside and went there, turning it into an Internment Camp for toys, stating that it is better that way than letting other toys from being abandoned by owners. As for Big Baby, he acts up as Lotso's enforcer while Chuckles was found by Bonnie and taken home.
Near the climax of the movie, Lotso catches Andy's toys trying to escape by making his henchmen 'break' Chatter Telephone into revealing the plan, but is thrown into the dumpster by Big Baby when Woody reveals his knowledge of Lotso's deception. Eventually, Lotso pulls Woody into the dumpster with him as an act of revenge, prompting the rest of Andy's toys to tag along.
At the dump, Lotso is found being stuck under a large golf bag before being saved by Woody and Buzz before escaping the shredder with them. As they are about to reach the incinerator, Lotso finds an emergency button that can stop the conveyor belt, and with Woody and Buzz's help, manages to get to it. However, rather than pushing the button, he instead runs off and leaves Andy's toys to die, still believing that the fate of all toys is abandonment by their owners. Hamm and Slinky vow revenge on Lotso for almost letting them die, but Woody tells them it's not worth it, saying that he's been enough trouble for them and he needs to regain the love he lost so many years ago as retribution for his actions. This became fulfilled when Lotso later gets found by a garbageman, who has admitted of having a Lots-O'-Huggin' Bear as a kid. Loving the teddy bear like old times, the garbageman straps Lotso to the grille of his garbage truck between a few other toys, which advise Lotso to keep his mouth closed so that bugs and trash filth won't go into it, something which Lotso instantly obliges to.