Tupperware, the giant of hermetic polyethylene packaging so famous in so many houses, is about to disappear. Well, not really the product, but the brand that gave its name to that plastic box that everyone now refers to as tuppers. “Food in Tupper” was invented by Earl Tupper, an American chemist, in 1946, which featured air- and water-tight packaging thanks to its double-sealed lid.
At that time, people used to use glass and ceramic containers, and this new container had to have the air removed to close it, so it didn’t quite succeed. However, a woman named Brownie Wise, who already sold cleaning products at house parties, added Earl’s products to her catalog, holding demonstrations to attract customers and recruiting other saleswomen. It was there that the mythical parties Tupperware. The product was made of gold and today in Spain we are all fans of the Tupperware when we have to eat at the office.
But everything has changed. In 2023 people no longer have the same consumption habits and the 77-year-old brand, in desperate search of investors, faces imminent closure.
The truth is that the brand’s shares had been falling for years (only 90% did in the past), since the company’s main business model of direct sale to consumers through commercial agents has become completely outdated. On Friday, the manufacturer pointed out what everyone feared: “There are substantial doubts about the company’s ability to continue as a going concern.”
He announced that he will not have enough cash to pay for his next operations and that he is working with advisers to find financing and stay afloat. In addition, the company is planning layoffs and reviewing its real estate portfolio for potential ways to save money. Even the New York Stock Exchange warned a few days ago that Tupperware shares are in danger of being removed from the list for failing to submit the required annual report.
The business has fought hard in recent decades with the competition, but it has been a clear loser. They have tried to reinvent themselves to attract younger customers with more colorful and fashionable products, but the truth is that the brand no longer connects with younger consumers, who have never heard of Tupperware parties. Even the older ones who do remember their glory days have changed. For more visibility, he also struck a deal with retailer Target last year, but it hasn’t done him much good.
The fall of the packaging titan
As GlobalData CEO and retail analyst Neil Saunders explained in this CNN article, there are a number of issues at play, including a “decline in the number of sellers and a pushback from consumers in home products.” . The expert further explains that it is in a precarious position because it is struggling to increase sales, and because it has few assets, it does not have much ability to raise money: “The company used to be a hotbed of innovation with kitchen appliances to solve problems, but he’s really lost his edge.
It must be remembered that the brand became known in the 50s and 60s for the so-called “Tupperware parties” that were held in private homes of wealthy people. The company, in fact, still uses direct trade channels (employees earn a percentage of their sales), in addition to selling products on its website, but the reality is that most customers choose to buy cheaper containers on Amazon or AliExpress .
Although the company experienced a rebound during the early days of the pandemic, it was also affected by the Covid lockdowns in China, which disrupted distribution. Already in March 2022 they reported that its workforce was reduced by 18% and they warned that they would have to restructure their debt a third time, after already doing so twice earlier that year.
For Tupperware, the challenge was fighting rising interest costs on its loans while trying to improve business. But unfortunately, time has said that the business is simply unbeatable.
Images: Tupperware
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