Tupperware

Last updated
Tupperware
Company type Subsidiary
Founded1946;78 years ago (1946)
Leominster, Massachusetts
Founder Earl Tupper
Headquarters
Orlando   OOjs UI icon edit-ltr-progressive.svg
ProductsPreparation, storage, serving products for the kitchen and home, and beauty products
RevenueIncrease2.svg US$2.26 billion (2017)
Number of employees
13,500 (2010) [1]
Parent Party Products LLC [2]
Website tupperware.com

Tupperware is an American company that manufactures and internationally distributes preparation, storage, and serving containers for the kitchen and home. It was founded in 1942 by Earl Tupper, who developed his first bell-shaped container and introduced the products to the public in 1946.

Contents

As of 2007, it was sold by approximately 1.9 million direct salespeople on contract. [3] In 2013, the top marketplace for Tupperware was Indonesia, topping Germany. Indonesia's sales in 2013 were more than $200 million. [4]

In September 2024, when its parent company filed for bankruptcy, [5] it was a wholly owned subsidiary of Tupperware Brands Corporation (TBC). Two months later, it was announced that a company formed by a group of TBC secured lenders, Party Products LLC, had completed the purchase of the brand, as well as certain related operations. [6]

Company history

Tupperware containers from 2011 Tupperware plastic containers.jpeg
Tupperware containers from 2011
Colorful Tupperware containers Tupperware (2).jpg
Colorful Tupperware containers

Early years

Earl Tupper (1907–1983) purchased polyethylene pellets from DuPont to build Tupperware products in 1938. [7] He developed the first product in 1946 in Leominster, Massachusetts. [8] The polyethylene plastic containers could be used in households to contain food and keep them airtight, and featured a "burping seal" that was patented in 1949. [9]

The product became notable with a sale-through-presentation idea, held in a party setting. [10] Tupperware developed a direct marketing strategy known as the party plan to sell products. The party plan called Tupperware party enabled women of the 1950s to earn an income while keeping their focus in the domestic domain. [11] Brownie Wise (1913–1992), a former sales representative of Stanley Home Products, started organizing more of these parties and was soon made vice president of marketing in 1951. [12] [13] Later, she created Tupperware Parties Inc. [14] Women at the parties were exhorted to sell more via the slogan "No Sex, No Sup, Just Tup-Tup-Tup!". [15]

During the early 1950s Tupperware products gained popularity and sales increased. The company continued the Tupperware parties and rewarded top-selling women. [16] [17] [18]

1960–2000

Tupperware expanded to Europe in 1960 when Mila Pond hosted Tupperware parties in Weybridge, England, and other locations around the world. [19] A comparison technique called "carrot calling" was used by the representatives wherein they would travel door-to-door in a neighborhood and ask housewives to compare carrots placed in a Tupperware container with anything that they would have ordinarily left them in. These would lead to scheduling of a Tupperware party. [19]

In 1977, Rexall, the owner of the Tupperware brand, sold its namesake drugstores and renamed itself Dart Industries. Dart merged with Kraft Foods to form Dart & Kraft. The company demerged, with the former Dart assets renamed to Premark International. Tupperware Brands was spun off from Premark in 1996. [20]

Tupperware also produced limited products outside its core preparation and storage lines. The Shape O is a toddler toy/puzzle, first produced in 1969. Ten different geometric shapes are inserted into corresponding holes in the ball to complete the game.

2001–present

Tupperware logo from 1994 to 2024. Tupperware Brands Corporation logo.svg
Tupperware logo from 1994 to 2024.

In 2003 Tupperware closed down operations in the UK and Ireland, citing customer dissatisfaction with their direct sales model. [21] The company relaunched in the UK in mid-2011, [22] and recruited UK staff, but in December the relaunch was canceled.

As of 2007 Tupperware was sold by means of approximately 1.9 million direct salespeople on contract. [23]

In May 2018, the Israeli daily TheMarker reported that Tupperware will withdraw from Israel leaving 2,000 agents without a job. [24] Tupperware Israel relaunched in December 2020 as an online shop. [25] In March 2021 Tupperware closed down operations in the Netherlands. [26] In August 2022, Tupperware announced it would be leaving the New Zealand market in late 2022. [27]

On November 2, 2022, after publishing quarterly results, the company said its inability to maintain compliance with its credit agreement raises substantial doubt about its ability to continue as a going concern. The stock value dropped more than 40%.[ citation needed ] In April 2023 the company warned that there is "substantial doubt about the company's ability to continue as a going concern". The stock price dropped almost 50% on the same day. [28] On April 11, 2023, Tupperware's stock value plummeted to $1.30. Although there was a slight recovery the following day, its sliding sales and increasing debt prompted warnings of permanent company closure unless it receives substantial investment. [29]

As of April 2023 Tupperware had 82 countries listed as places they trade. [30] In May 2023, a financially-ailing Tupperware signed on Moelis & Co. to explore various available strategic options, as it also detected inconsistencies in its prior periods' financial reportings. [31]

On June 1, 2023, Tupperware stopped supplying an independent sales force in the UK and Ireland [32] and moved fully to selling online and via the shopping TV channel Ideal World, shortly before Ideal World itself went out of business in early July 2023. [33]

On October 14, 2024, Laurie Ann Goldman became CEO and board director following leadership roles at Spanx, Avon and Guess. Tupperware Chair Susan Cameron said in a prepared statement that Goldman “brings the right mix of business and brand experience and has built consumer affinity for some of the world's most iconic brands.”

On June 14, 2024, Tupperware announced that it would close its last remaining US manufacturing plant in Hemingway, South Carolina and shift production to their plant in Lerma in Mexico, with the closure to be completed in January 2025. [34]

On September 16, 2024, Tupperware Brands Corp. announced that they were preparing to file for Chapter 11 bankruptcy protection later in the week after a failed comeback after beneficial sales during the COVID-19 pandemic. The company's stock fell nearly 60% after the announcement. [35] On September 18, Tupperware Brands filed for Chapter 11 bankruptcy protection, with plans to continue operating during the proceedings. [5] Lenders involved are advocating for a foreclosure in order to claim assets. [36] On October 22, with $818 million obligations, it signed a deal with lenders for $23.5 million cash and $63 million debt relief in the United States District Court for the District of Delaware bankruptcy court for approval of Judge Brendan Shannon. [37]

Tupperware parties

A Tupperware party advertisement from the late 1950s Tupperware party.jpg
A Tupperware party advertisement from the late 1950s

Tupperware is still sold mostly through a party plan. A Tupperware party is run by a Tupperware consultant as a host or hostess who invites friends and neighbors into their home to see the product line. Parties also take place in workplaces, schools, and other community groups. [38] To stay in touch with its sales force, Tupperware published the monthly magazine Tupperware Sparks. The magazine had snapshots of saleswomen posing with awards and recognition for high sales. To avoid spending money on advertising, Tupperware created events that attracted free publicity. [39]

The multi-level marketing strategy adopted by Tupperware has been criticized as manipulative. [40] Statistics released by Tupperware in 2018 showed that 94% of its active distributors remained on the lowest level of the pyramid, with average gross earnings of $653. [41]

In recent years, Tupperware in North America has moved to a new business model which includes more emphasis on direct marketing channels and eliminated its dependency on authorized distributorships. This transition included selling through Target stores in the US and Superstores in Canada with disappointing results. [42] In countries with a focus on marketing through parties (such as Germany, Australia, and New Zealand), Tupperware's market share and profitability continue to decline. [43] In New Zealand, products can be also purchased online without a salesperson.

In China, Tupperware products are sold through franchised "entrepreneurial shopfronts", of which there were 1,900 in 2005, due to pyramid selling laws enacted in 1998. [44] [45]

Feminist reactions

Feminist academics had different reactions to Tupperware. A more positive interpretation argued Tupperware provided employment for women who were pregnant or otherwise not guaranteed their position at work due to unequal laws in the workplace. [11] Opposing views argued that the intended gendered product and selling campaign further domesticates women, and keeps their predominant focus on homemaking. [46] Negative views also argued Tupperware helped keep women restricted to the domestic sphere. [11]

See also

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References

  1. ↑ "Form 10-K Annual Report Filed Feb 22, 2011 (FY 2010)". Tupperware Inc./SEC Filing. Archived from the original on 2012-07-27.
  2. ↑ https://www.prnewswire.com/news-releases/party-products-llc-completes-acquisition-of-global-rights-to-tupperware-brand-name-and-operations-in-core-geographies-302317822.html
  3. ↑ "New sales record in 2007, Growth in all regions". www.plasteurope.com. 8 November 2008.
  4. ↑ Cochrane, Joe (March 2015). "Tupperware's Sweet Spot Shifts to Indonesia". The New York Times. Retrieved April 7, 2015.
  5. 1 2 Dmitracova, Olesya; Maruf, Ramishah (September 18, 2024). "'The party is over' as Tupperware files for bankruptcy after years of troubles". CNN. Retrieved September 18, 2024.
  6. ↑ "Party Products LLC Completes Acquisition of Global Rights to Tupperware Brand Name and Operations in Core Geographies". PR Newswire. Retrieved 2024-12-13.
  7. ↑ "Earl Silas Tupper". www.pbs.org.
  8. ↑ "Earl Silas Tupper". Ideafinder.com. Retrieved 2013-02-28.
  9. ↑ Ananya Bhattacharya (11 April 2023). "Tupperware's business is nowhere near as airtight as its containers". Quartz.
  10. ↑ Tupperware Documentary , retrieved 2022-10-05
  11. 1 2 3 Clarke, Allison J. (1999) Tupperware, Washington: Smithsonian Institution Press. pp. 192–193. ISBN   1560989203.
  12. ↑ Maurer, Elizabeth (2017). "Social Marketing Before the Internet". National Women's History Museum.
  13. ↑ "Secret History Of: Tupperware". The Independent. 2010-10-08. Retrieved 2017-08-12.
  14. ↑ Bax C. (2010). "Entrepreneur Brownie Wise: Selling Tupperware to America's Women in the 1950s". Journal of Women's History. 22 (2): 171–180. doi:10.1353/jowh.0.0159. S2CID   154411167.
  15. ↑ "No Sex, No Sup, Just Tup-Tup-Tup!". December 2022.
  16. ↑ Wortz, Eleanor Thompson. "Fly Gals of World War II". Robertson Publishing. Retrieved September 25, 2011.
  17. ↑ Goudreau, Jenna (February 14, 2011). "The Tupperware Effect, Empowering Women Around The World". Forbes .
  18. ↑ "Empowering the Community at Risk: The Partnership of PT Tupperware Indonesia and HOPE worldwide" (PDF). Public Health Institute. October 2009. Archived from the original (PDF) on 2012-07-11. Retrieved 2012-03-21.
  19. 1 2 "What is today's American Dream?". BBC News . 28 March 2011. Retrieved 2011-03-29.
  20. ↑ "Tupperware Spinoff Is Set for May 31". The New York Times . 20 May 1996.
  21. ↑ "Party Is over for Tupperware UK". BBC News. 23 January 2003. Retrieved 10 May 2011.
  22. ↑ "Did Tupperware Parties Change the Lives of Women?". BBC News. 10 May 2011. Retrieved 10 May 2011.
  23. ↑ Cortese, Amy (July 7, 2007). "Tupperware Freshens Up the Party". The New York Times . Retrieved May 19, 2009.
  24. ↑ חרותי-סובר, טלי (2018-05-17). "טאפרוור עוזבת את ישראל - ו-2,000 מפיצות ללא עבודה". TheMarker. Retrieved 2018-05-18.
  25. ↑ "Home". tupperware.co.il.
  26. ↑ "No more 'plastic path to empowerment': Tupperware party in NL is over". March 2021.
  27. ↑ "The famous Kiwi party's over: Tupperware closes lid on NZ operation". NZ Herald. 24 August 2022. Retrieved 2022-08-24.
  28. ↑ Jordan Valinsky (April 10, 2023). "Tupperware stock plunges after warning it could go out of business". CNN.
  29. ↑ "Tupperware: Why the household name could soon be history". BBC.
  30. ↑ "Tupperware - Where you can find us - Our Story". www.tupperwarebrands.com.
  31. ↑ "Tupperware brings on Moelis & Co to help explore strategic alternatives". reuters.com. 8 May 2023. Retrieved 2023-06-07.
  32. ↑ "Tupperware UK | Tupperware Queen UK | Buy Genuine Tupperware Online". Tupperware Queen Shop UK.
  33. ↑ "Ideal World shopping channel goes into administration". BBC News. July 6, 2023.
  34. ↑ Sparrow, Norbert (June 14, 2024). "Tupperware says adios to its last US factory". plasticstoday.com. Informa PLC. Retrieved August 6, 2024.
  35. ↑ "Tupperware Brands plans to file for bankruptcy, Bloomberg News reports". Reuters. September 16, 2024. Retrieved September 16, 2024.
  36. ↑ "Tupperware Gets About Two Weeks to Use Cash Amid Lender Disputes". Bloomberg.com. 2024-09-25. Retrieved 2024-09-25.
  37. ↑ "Tupperware cancels auction, agrees to lender takeover". Rappler . October 23, 2024. Retrieved October 25, 2024.
  38. ↑ Blakemore, Erin (1 March 2019). "Tupperware Parties: Suburban Women's Plastic Path to Empowerment". History.com.
  39. ↑ "Tupperware Home Parties". PBS. Retrieved 29 July 2018.
  40. ↑ Richards, Laura (22 January 2019). "How MLMs — multilevel marketing schemes — are hurting female friendships". Chicago Tribune. Retrieved 30 March 2019.
  41. ↑ "Tupperware Income Disclosure Summary" (PDF). Tupperware. Archived from the original (PDF) on 30 March 2019. Retrieved 30 March 2019.
  42. ↑ "Tupperware to End Partnership with Target Stores". The New York Times. June 19, 2003. Retrieved May 19, 2009.
  43. ↑ Kilgore, Tomi. "Tupperware matches profit views, sales fall slightly less than expected". MarketWatch. Retrieved 2019-04-01.
  44. ↑ Tempest, Rone; Farley, Maggie (April 24, 1998). "China Slams Door on Direct-Sales Firms". Los Angeles Times . Retrieved May 19, 2009.
  45. ↑ "Tupperware adapts to serve diverse markets". Plastics News . November 17, 2005. Archived from the original on December 8, 2008. Retrieved May 19, 2009.
  46. ↑ Vincent, S. (2008). "Preserving Domesticity: Reading Tupperware in Women's Changing Domestic, Social and Economic Roles". Canadian Review of Sociology. 40 (2): 171–196. doi:10.1111/j.1755-618X.2003.tb00242.x.

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