Explainer

Lifting the lid on Tupperware’s troubles

Outdated sales strategy and market competition led to the company’s downfall

1996

Tupperware Brands’ sales revenue was $1.37 billion in 1996, the year it was listed on the New York Stock Exchange.

An image showing sketches of Tupperware boxes. Each box represents $100 million. There are 14 boxes.

2008

Revenue crossed $2 billion in 2008 and was $2.16 billion at the end of that year.

There are 22 boxes in this image.

2013

Sales revenue peaked at $2.67 billion.

There are 27 boxes in this image.

2022

Revenue fell over the next few years and was $1.3 billion in 2022.

There are 13 boxes in the image.

In September this year, Tupperware Brands filed for bankruptcy in a Delaware court as demand fell, losses mounted, the stock slumped and debt rose.

Tupperware revolutionized food and kitchen storage in the latter half of the 20th century and became a household name. The company adopted a direct-selling business model, in which independent consultants, the majority of whom were women, sold to customers at house parties. This was unique at the time and took off in the U.S., eventually becoming popular in the rest of the world.

On Oct. 22, the company agreed to sell its business to a group of lenders for $23.5 million in cash and over $63 million in debt relief. A week later, the court approved the sale of Tupperware Brands.

Tupperware Brands was listed on the New York Stock Exchange in 1996 and its stock rose to a peak in late-2013. After a marked decline just before the pandemic, sales revenue and the share price briefly rose as people turned to Tupperware boxes to store food during lockdowns. However, as the world started opening up, people turned away from Tupperware and sales fell, as did the stock.

Region-wide sales

Tupperware Brands’ sales revenue peaked at $2.67 billion in 2013. Sales from the Asia-Pacific region accounted for a third of the company’s total sales that year. Europe came second, while North and South America were a distant third. In 2018, sales were down from the highs of 2013, but the Asia-Pacific segment continued to command one-third of the total. However, in 2023, the latest year for which quarterly data is available, revenue across all regions, notably from the much sought-after Asia-Pacific region, fell sharply.

The graphic is a stacked bar chart showing regional segment-wide revenue. The stacks are sketches of Tupperware boxes.

Why did sales in the Asia-Pacific segment flourish?

Emerging markets such as Indonesia, China, India and Malaysia contributed significantly to the company’s revenue in the Asia-Pacific region.

“Tupperware Brands took more efforts in emerging economies to market itself and an expanding middle class wanted to buy more products for their kitchen. People in countries such as Indonesia in Asia were pre-disposed to the direct selling method due to the culture,” Neil Saunders, managing director at data analytics and consultancy company GlobalData, told Reuters.

In eight of the nine years between 2010 and 2018, sales in Indonesia crossed the $100 million mark. In three of those years; 2013, 2014 and 2015; revenue surpassed $200 million. A study by the company found that 97% of women consultants in Indonesia felt a positive change in their financial situation, 70% reported having the ability to save their earnings and more than 54% were better able to support their children's needs.

Between 2014 and 2020, revenue in China crossed the $200 million mark in 2017, 2018 and 2019. In China, where direct-selling is banned, the company’s sales force operated independent retail stores and studios.

However, revenue from these countries, particularly from Indonesia, fell as competition increased and the company faced difficulty in retaining its sales force, Saunders said. In China, people started spending less post the pandemic and turned to cheaper alternatives for food storage, he added.

The line chart shows the revenue share of Indonesia and China, in red and yellow, respectively in Asia-Pacific.

Direct selling: from boon to bane

Tupperware’s direct-selling model eventually became a bane for the company. According to its bankruptcy filing, consumers now prefer making purchases in stores or online, and only a small share buy via the direct-selling model. Still, in 2023 some 90% of Tupperware’s sales were from direct sales. It has historically relied on independent sales representatives to move its products, but that strategy has failed to reach modern consumers, according to the company.

"Nearly everyone now knows what Tupperware is, but fewer people know where to find it," Tupperware Chief Restructuring Officer Brian Fox wrote in the filing.

The horizontal stacked bar chart shows the various sales channels of Tupperware and the overall homeware market. The direct selling part of the chart is highlighted in red.

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Too little too late

In a bid to renew interest in the brand, the company has attempted to expand its online and retail presence. It started selling its products on Amazon.com in the United States in 2022. In the same year, it launched in Target stores. In markets such as India, it sells its products on various e-commerce platforms.

However, the increase in sales through online and retail channels has been slower than the decrease in sales through its direct selling model. In its latest annual report from 2022, the company says that while retail sales now represent 4% of the company’s total revenue, positive results in this channel were not enough to offset declining trends in the direct selling channel.

June 2022
The company opened a digital storefront on Amazon.com, which offered 30 different Tupperware products
October 2022
Tupperware launched on Target and Target.com
March 2024
A limited experience pop-up store was launched in New York
June 2024
Tupperware launched in Macy’s stores with in-store parties hosted by independent consultants

Competitors surge ahead

In the 1980s, several of Tupperware's patents expired which allowed rivals to enter the market with cheaper alternatives for plastic food storage. In the United States, major players such as Newell Brand’s Rubbermaid and Glad started taking over. At present, on Amazon.com’s U.S. website, food storage containers by Rubbermaid, Pyrex, Snapware and several other smaller brands are cheaper than those of Tupperware and also have relatively more customer reviews.

Revenue figures also show that Tupperware has fallen behind its main competitor. Between 2018 and 2022, Tupperware Brands’ revenue fell from $2.1 billion to $1.3 billion. In the same period, revenue for the Home Solutions segment of Newell Brands, which sells food container products, rose from $1.9 billion to $2.1 billion.

The split bar chart shows the price of various competitors of Tupperware on Amazon.com US and the number of ratings it has on Amazon US.

Based on the sales agreement with creditors, the company’s lenders will be allowed to purchase the Tupperware brand name and operations in several of its markets. The company will also wind down operations in markets where it has heavy liabilities, Chief Executive Officer Laurie Ann Goldman said in a statement on Oct. 22.

Sources

LSEG; Company statements; Tupperware Brands bankruptcy filing; Amazon.com US

Edited by

Anand Katakam and Sharon Singleton