Tupperware, founded in 1946 by Earl Tupper, was once recognized for revolutionizing the way people stored and preserved their food. But it was also recognized for how it marketed its products to consumers, becoming one of the most notable direct-to-consumer (D2C) brands of its time. Today, however, the container company is in danger of collapse.
According to a regulatory filing, Tupperware, based in Orlando, Fla., has expressed “substantial doubt” about its ability to remain operational and is seeking financing with the help of advisors. The company is also evaluating cost-cutting measures such as layoffs and a review of its real estate assets.
Tupperware has stated that it will be forced to halt its business operations if it is unable to obtain additional funding, as it lacks sufficient cash to sustain its activities.
“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” Tupperware Brands President and CEO Miguel Fernandez said in an April 7 press release. “The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate action to seek additional financing and address our financial position.”
Tupperware was an early adopter of direct marketing, using hostess parties as a means of selling its products. Like cosmetics and skincare company Avon, Tupperware offered incentives to hostesses who invited friends to attend these parties, creating a personalized and intimate sales experience.
In the 1950s, Tupperware parties became a cultural phenomenon, with women across America attending them in droves. Tupperware’s D2C model was incredibly successful, and it helped the company grow rapidly.
Brownie Wise, a single mother and former Detroit secretary, became Tupperware’s most successful early direct seller. In 1951, Tupper hired her to establish a direct selling system for his company, which led to the creation of the subsidiary Tupperware Home Parties, Inc.
Shortly after establishing that subsidiary, Tupper abandoned retail stores in favor of Wise’s home party system. Independent consultants were recruited to sell Tupperware products, earning a percentage of the goods sold and incentives such as bonuses and products.
By the end of the 1950s, Tupperware had established itself as a household name without relying heavily on advertising by both stereotyping and empowering women, particularly 9,000 independent consultants by 1954, mostly women, who ultimately generated $25 million in sales that year.
In the early 1980s, however, Tupperware’s growth suffered amid increased competition from retail companies like Rubbermaid Inc. and Eagle Affiliates, along with the movement of women into the workforce. According to data from the Bureau of Labor Statistics, the percentage of women in the U.S. labor force increased from 34% in 1950 to 60% in 2000. Additionally, the company failed to entice people with higher commissions and reduced the quality of its bonus prizes, further exacerbating its labor problem. By 1983, the company saw a 7% reduction in sales and a 15% decline in earnings.
It did, however, regain some momentum. Tupperware’s 2020 earnings reports indicate that the company received a boost from increased consumer cooking at home during the early months of the pandemic. But since then, sales have slowed down.
Tupperware is facing several challenges, including a drop in the number of its sellers, consumers pulling back on home product buying and struggles in connecting with younger consumers, Neil Saunders, a managing director and retail analyst at GlobalData Retail, said in a CNN report.
Saunders also observed that Tupperware, which was once known for its innovative kitchen solutions, is no longer at the forefront of product innovation.
In an effort to attract younger consumers, reach a wider audience and diversify its retail sales channels, Tupperware has been actively distancing itself from its traditional image. One example is a partnership with Target, which began in October 2022. The container company also teamed up with bag company Vera Bradley in the summer of 2022 to make a lunchbox set which includes a water bottle, sandwich keeper and two snack holders.
In 2021, Tupperware expanded its ECO+ product portfolio with Tritan Renew from Eastman to offer up more sustainable solutions.
“Our efforts to support the next generation of sustainable materials continues to reflect on our purpose to nurture a better future every day by reducing waste at every step of the product life cycle,” said Bill Wright, Tupperware Brands executive vice president, product innovation, at the time of the launch. “I’m honored today to expand our ECO+ line with new product introductions and our new partnership with Eastman, which allows us to use recycled material in our more transparent designs.”
That same year, Tupperware teamed up with quick-service restaurant Tim Horton’s to provide a reusable packaging container option.
And in 2020, Tupperware partnered with the National Park Foundation to better align with the values of younger consumers and promote waste reduction by minimizing food and single-use plastic waste. The partnership involved the implementation of recycling and composting infrastructure, educational signage and the installation of water bottle refill stations.
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