During the pandemic, many employees did not go to the office, so they ate lunch at home, so they did not need to buy plastic food boxes. It seems that the American brand Turrerware may not survive the changes in the labor market – and the “Tupperware party” will not save it.
In April, we reported that the American company Tupperware, a manufacturer of plastic food containers, was struggling to survive. Previously, the company wanted to save sales by expanding its offer, e.g. baby bottles. Unfortunately, it wasn’t enough. If the way to save finances was to be a personnel carousel – with the hope that the next president would develop an effective strategy – then this idea did not work either. In five years, Tupperware had three CEOs.
The company then announced that it was considering delisting its shares from the New York Stock Exchange. Faced with rising debt payments, the company forecasts that it “may not have adequate liquidity in the near term” and warns that “there are serious doubts about its ability to continue as a going concern”.
The recent agreement on restructuring the company’s debt is a lifeline that may not be enough. The market segment in which Tupperware operates has been growing faster than the trend during the COVID-19 pandemic. Lockdowns and remote work have led to changes in consumer habits that are beneficial for the company. Currently, their gradual return from the pre-pandemic reality is combined with slowing down consumption – comments Bartosz Sawicki, Cinkciarz.pl analyst
He adds that since the Tupperware business was not able to go straight in favorable circumstances, and the market environment is changing to the disadvantage, it is difficult to look at the company’s situation through rose-colored glasses. “The risk of the US economy falling into recession will put pressure on revenues, and Tupperware still tops the list of the most threatened representatives of the retail industry,” reads the analysis prepared by Sawicki.
The Tupperware Party conquered the United States
Tupperware is a company with an interesting idea for running a business. It did not conquer the Polish market, because cheaper boxes sell better in our country – but it won the hearts of American housewives.
Tupperware still maintains a sales model that is essentially a thing of the past – products can be purchased not only in an online store or discount store, but also invite a salesperson to conduct a demonstration. Neighbors can be invited to such a meeting (“Tupperware party”).
“Gather your friends and family for a Party where they will have fun learning the secrets of the world and Tupperware products. Maybe they’ll discover a new recipe. Maybe they’ll find clues they’ve never known before. And you can get something out of it too. Thanks to the Housewives for organizing the Party in the form of free, classic Tupperware products, to choose from depending on the sales achieved. Be a part of the Party while our Tupperware Consultant will lead it,” reads the invitation on the company’s website.
The first Tupperware event was held in 1948. It proved to be a hit: From 1951, the Tupperware Party system worked so well that all Tupperware products were taken off store shelves and could only be purchased during the show. “The direct sales show was a welcome distraction for women whose community involvement centered primarily around their family,” reads the company’s website.