This is a pretty complex question that goes beyond just SEO and extends to branding and business strategy, so there are no simple answers here.
I personally think having a single site is easier to manage, and since all the products are related, it could lead to additional sales as well.
Even though some link equity is lost through 301 redirects, I don't see 3rd party retailers outranking your new site for "snugees" just because you switch from "snugees.com" to "snugeebrands.com".
Just create a relevant landing page specifically for snugees, and it should continue to rank well, and the other products should benefit from the link juice that is being transferred over from the old site.