Tupperware's party is over
The iconic 77-yr-old company was founded in 1946
In a statement, Tupperware said that its shares were in danger of being delisted from the New York Stock Exchange because it had not yet filed its annual report. It also warned that it had to renegotiate its loans after already amending its loan agreements three times since August 2022. Tupperware said it was struggling with higher interest costs on its borrowings while it attempts to turn the business around.
The company said it "currently forecasts that it may not have adequate liquidity in the near term", adding that it "has therefore concluded that there is substantial doubt about its ability to continue as a going concern". In addition, Tupperware said that its financial results for 2021 and 2022 as well its interim figures in 2021 and the first three months of 2022 had been "misstated" due to how the firm accounted for taxes and leases.Tupperware's share p rice dropped by nearly 50% on Monday.
Tupperware: Why the household name could soon be history
'Tupperware parties' made it an icon during the 1950s and 1960s consumer revolution, and its air-tight and water-tight containers took the market by storm
The brand Tupperware has become so synonymous with food storage that many people use its name when referring to any old plastic container. But the 77-year-old US company is seeing cracks form in the once revolutionary air-tight sealing business that made it famous, with rising debts and falling sales prompting a warning it could go bust without investment. Despite attempts to freshen up its products in recent years and reposition itself to a younger audience, it has failed to stop a slide in its sales.
The firm's 'Tupperware parties' made it an icon during the 1950s and 1960s consumer revolution, and its air-tight and water-tight containers took the market by storm. But its core business model of using self-employed salespeople who sell primarily from their own homes has been going out of fashion for a while, and was retired altogether in the UK in 2003. Now company bosses have admitted that, without new funding, a brand name which has passed into common parlance could vanish from the market. "We use it (Tupperware) as a noun, which is quite unusual for a brand," said Catherine Shuttleworth, founder of retail analysis firm Savvy Marketing. "I think a lot of younger people will be surprised it is a brand in itself." While Tupperware was a "miracle product" when first sold decades ago, Ms Shuttleworth added, the market has been flooded by companies offering cheaper alternatives in recent years. A resurgence during the Covid-19 pandemic, buoyed by people taking up baking and cooking more at home, reversed sharp falls in Tupperware's share price. But the rise turned out to be temporary. Sales have slid again since then, largely because the firm has not been "innovative enough" over the past 10 to 20 years to keep up with its rivals, according to Ms Shuttleworth.
A lack of innovation is a far-cry from its early days. The company was founded in 1946 by a man, the inventor Earl Tupper, but its public face was a woman: Brownie Wise. Tupper's product was a big deal - it utilised new plastics to keep food fresh for longer - invaluable when refrigerators were still too expensive for many - but until Wise came along, it was not selling. She had already started organising events to sell the containers, meeting directly with the housewives and mothers the company wanted to reach, at gatherings which were as much about socialising as they were about business. Her innovative style - and her sales figures - caught the eye of Tupper, and she was promoted to executive level at a time when women were largely excluded from the boardroom. Wise's and Tupperware's impact is still debated by academics, but many say it played an important role in bringing women into the workforce in post-war America, and provided a source of income to other women around the world.
The Tupperware party is OVER! How DoorDash and Grubhub have pushed iconic brand to the brink of collapse
Iconic 77-year-old brand, once a mainstay in American homes, faces cash crunch & pressure from creditors
After Tupperware Brands Corporation warned it could soon go out of business, the iconic company's failure to adapt to modern trends and attract new customers is in the spotlight. Once a mainstay at American dinners and backyard barbecues, Tupperware containers shot to fame through the company's direct-sales model and 'Tupperware parties' hosted in sellers' homes. While the brand's sales briefly surged during the COVID-19 pandemic, as families prepared more home-cooked meals during lockdown, the trend sharply reversed last year as restaurant dining boomed once again.
On Friday, Tupperware disclosed it has 'substantial doubt about its ability to continue as a going concern' in the face of a cash crunch and pressure from creditors, after errors in its financial statements left it unable to timely file an annual report. Experts say financial missteps, the demise of the direct-sales model in the age of e-commerce, and the rise of cheap alternatives - including re-useable containers from food deliveries - may have all played a role in Tupperware's downfall. Linda Bolton Weiser, managing director and senior research analyst for consumer products at D.A. Davidson, told DailyMail.com that Tupperware failed to invest adequately under former CEO Rick Goings. 'They were especially deficient in IT investment,' said Bolton Weiser, noting that the company's free cash flow instead went toward high dividends for shareholders. Goings led the company from 1998 to 2018. Tupperware suspended its quarterly dividends in 2019, after paying yields as high as 8.4 percent. 'They also have failed to fix the basic fundamentals of their core direct selling business,' added Bolton Weiser, who officially dropped coverage of Tupperware's stock last week.
Launched in 1946 by entrepreneur Earl Tupper, Tupperware has long remained reliant on the direct sales model, in which individual sellers buy the product from the company, and then sell them door-to-door or at neighborhood Tupperware parties. In the 1950s and 60s, Tupperware parties and the company's iconic food containers exploded in popularity, and the company expanded internationally, selling in some 100 countries at its peak. But over the years, the direct sales model has generally suffered with the rise of e-commerce, and companies that rely on an army of individual neighborhood sellers have been forced to re-think their business model. Tupperware long stuck primarily to direct sales through neighborhood Tupperware parties, and online sales through its own website, but last June began selling on Amazon. In October, Tupperware also launched a partnership with Target to put the food containers on store shelves, but it appears the new sales channels may not be enough to save the business.
Iconic Tupperware warns it could go out of business
Shares of the iconic 77-yr-old company, founded in 1946, plunged nearly 50 per cent on April 10. PHOTO: AFP
Kitchenware staple Tupperware is teetering on the brink of collapse, with its shares plunging nearly 50 per cent on Monday, the largest drop on record, to notch an all-time low. Investors were spooked after the company said last Friday it had hired financial advisers “to help improve its capital structure and remediate its doubts regarding its ability to continue as a going concern.”
Tupperware experienced a sizzling run-up during the first two years of the Covid-19 pandemic, with its share price soaring to US$37 as the lockdown boosted kitchenware sales. It has fallen on harder times since then, with the company blaming cash constraints caused by higher interest costs. The 77-year-old brand has struggled to shake its staid image and attract younger shoppers in the face of new competition, while demand for home products has fallen. Tupperware said it was working to find financing to stay in business, but that it wouldn’t have enough cash to fund operations if it failed to do so.
It is also working with Moelis & Co. and Kirkland & Ellis to explore options for its nearly US$700 million (S$933 million) in long-term debt. And it’s looking at its real estate portfolio for opportunities to streamline the company and have more cash on hand. BLOOMBERG
The history of Tupperware Parties, Tupperware Ladies & how they sold millions of plastic containers
Starting back in the 50s, women were encouraged to start their own businesses, hosting Tupperware parties, and demonstrating how to use those popular plastic containers. So what were these parties like? Here’s a look back:
- One night when I saw visiting a friend in Queens, a subway ride from Times Square, my hostess took me down the street to a Tupperware Party in the home of young mother of three little girls.
- She had invited 12 of her neighbors from her block to show them the new samples. This was a typical American suburban street of average income families and a total of 73 children.
- The evening started with games, and all the women taking a night off from husbands, housework and children, got right into the spirit of the occasion. Only soft drinks and cookies were served — this is an unwritten law so that no one is tempted to overreach herself socially or financially.
- Mrs Stegmaier showed the new things, discussed new ways of using them. The party lasted two hours, and when it was over, the women ordered what they needed. One of the guests announced she’d like to be a hostess next month.
- This is the endless chain of house selling which has made an overwhelming success out of a disappointing failure.
- Housewives are making handsome incomes from entertaining their neighbors and taking orders for household articles from a line set up by a dealer beforehand, and finishing off the evening of fun and neighborliness with coffee and cake.
- Many first-time hostesses, or guests, become dealers themselves. They discover latent sales abilities and go on to become sales managers. Then they recruit and train more dealers, and help put on more parties.
- At this point, the husbands often become interested. The next step is one in which the husband often gives up his regular job and joins his wife as distributor. The couple then operate their own warehouse and office to supply the dealers in their franchised territory.
- Today, 90 of the 160 franchised distributors are husband and wife teams. Men who have held ordinary jobs, averaging perhaps $5,000 annually, and wives who have never worked outside their homes, are making $35,000 to 50,000 a year from these home parties today.
- This should destroy the myth that all housewives lead a dull and profitless existence.
What is a Tupperware® Party?
Tupperware parties might serve buffet foods to demonstrate how the products can be used to store food
A Tupperware® party is a marketing event hosted in someone's home. The host receives certain incentives for hosting the event, and his or her guests have an opportunity to see Tupperware® products demonstrated, and to order specific products. This sales method, a form of mulilevel marketing, was developed in the 1950s by the Tupperware® company, and it is used to sell a wide variety of products by numerous companies. Online versions are also available, for hosts who prefer a more modern approach.
At a Tupperware® party, the host provides refreshments and entertainment, and secures the services of a consultant who works for the Tupperware® company. The consultant brings a variety of products to demonstrate, along with order forms, and he or she answers questions, shows guests how various products can be used, and markets the product line to encourage people to buy. The goal is to have a stack of orders from guests by the end of the party. In return for hosting a Tupperware® party, the host usually receives a discount on products, and he or she also has the opportunity to access gifts from the company. Typically the gifts are awarded on the basis of total sales, to give the host an incentive to sell as much as possible so that he or she can get the high-end rewards. While hosting a Tupperware® party can seem like a good way to make a little bit of money, it can be exhausting, and the pool of guests is only as wide as the host's friends.
The tradition of the Tupperware® party is mostly associated with women, and historically some women have used these parties as an excuse to get together with friends and have some fun. Some hosts have made careers out of hosting parties for Tupperware® and other products, investing a great deal of time and energy in expanding their marketing pool and encouraging friends to make purchases. A typical Tupperware® party centers around a particular product line, such as storage containers or kitchen implements. Some hosts organize their parties around themes, such as a tropical Tupperware® party with tropical décor, Polynesian-style snacks, and tropical drinks such as fruit punch. At a minimum, the host provides small food snacks and drinks, and he or she may also put together grab bags for guests, along with other incentives to encourage them to come and to spend money on the products being demonstrated.
Tupperware Parties: Suburban Women’s Plastic Path to Empowerment
If you peeked into a suburban living room in the 1950s, you might see a group of women in funny hats playing party games, tossing lightweight plastic bowls back and forth and chatting about their lives as they passed around an order form for Tupperware. Well stocked with punch and cookies, the daytime parties were well mannered affairs. But Tupperware parties were more than they might seem. Although they engaged in lighthearted socializing at living rooms, Tupperware party organizers were running thriving, woman-owned businesses. And the women who participated in them weren’t just stocking their homes: they were experimenting with cutting-edge technology that helped food stay fresh for longer. During the 1950s and 1960s, thousands of women started their own home businesses selling Tupperware, breaking gender stereotypes even as they reinforced them.
The Tupperware Home Parties of the 1950s and 1960s were the only way to purchase a line of polyethylene plastic storage containers that were the brainchild of Earl Tupper, a Massachusetts businessman who figured out a way to turn an industrial byproduct into an improvement on plastic he called Poly-T. Tupper introduced Tupperware after World War II. But at first, nobody understood what they were or how to use them. It would take an ambitious woman—and an army of amateur salespeople—to sell the innovative containers to America. Tupperware looked nothing like the plasticware that was in most women’s kitchens. At first, homemakers were wary of a material they associated with bad smells, a weirdly oily texture and cheap construction. The bowls’ most unique feature was also what held it back initially: the airtight lids wouldn’t seal unless they were “burped” beforehand, and that confused consumers, who returned them to stores claiming the lids didn’t fit. The businessman needed a new sales strategy, and quick. Around the time that Tupper invented Poly-T, a cleaning products company called Stanley Home had debuted the “home party,” a new method of selling products directly to housewives. Stanley Home parties were a chance for women to buy products from salespeople in their home, not their doorstep, and to do so along with their friends.
The parties were a way to connect with old friends, make new ones, and participate in a booming consumer economy. Though they took place in living rooms, the events were a way to step away (if only temporarily) from the intensive domestic labor expected of housewives in that era. They were also a way for women who were discouraged from working outside the home to make money. “Tupperware . . . took those moms out of the kitchen where they were 'supposed to be' and let them enter the workforce, and let them have something outside the home,” Lorna Boyd, whose mother Sylvia was a Tupperware dealer in the 1960s, told the Smithsonian Institution. Some Tupperware salespeople turned home parties into big business, and top sellers were rewarded with lavish gifts, like diamond rings and designer wardrobes, at the company’s annual sales meetings. Tupperware parties didn’t just flourish in the suburbs, or among white women. “Black and Hispanic women, single mothers and divorcees formed the less visible force behind Tupperware’s expansion,” notes Clarke. Though its public face was white and suburban, the company made inroads in markets that were underestimated or overlooked by other companies. Wise didn’t last at Tupperware—she was ousted after a conflict with Earl Tupper in 1958. She received no stock in the company she helped build and Tupper largely banned mentions of her from appearing in corporate literature. Shortly after Wise’s ouster, Tupper sold the company to Rexall, a drug store. But Tupperware—and Tupperware parties—live on. Today, the company is publicly traded and thrives on the global market. Sold in almost 100 countries, overseas sales produce more than half of its revenue, and its largest market is Indonesia. And though the parties may no longer be ubiquitous in the United States, they still peddle the American dream to women in the developing world.
Tupperware Heritage
Tupperware® brand products made their debut in 1946, the start of a revolutionary post-war period in history. For 60 years, Tupperware brand products have closely followed rollercoaster trends from the suburban movement to the 60's feminist revolution to '90s "cocooning" continually adding a unique organizational touch to the lives and kitchens across the nation. Just prior to its consumer introduction in 1946, inventor Earl Tupper's plastics-like materials of many manufacturers were dedicated to the war effort. The versatility and convenience of Tupper's "miracle" products helped to launch the plastics revolution of the next decade. Tupper's first consumer plastic products the Wonderlier® Bowl and Bell Tumbler offered a unique benefit that traditional food containers did not: they were lighter and less likely to break than traditional glass and crockery.
With the onset of the post-war "baby boom," women dedicated themselves to caring for their growing families. The "Tupperized" kitchen was born … a kitchen that was well organized and neat, and featured a variety of containers that replaced unsightly open packages and that kept food fresh longer. In 1946, Tupper introduced his legendary airtight seals patterned after the inverted rim on a can of paint which prevented food from drying out, wilting or losing its flavor in the now-common refrigerator. Despite their breakthrough nature, Tupper's products didn't sell well in retail outlets, primarily because consumers needed demonstrations in order to understand how they worked. In response, the first Tupperware Home Party was held in 1948, introducing an all-new way for Tupperware products to reach consumers. Demonstrations proved a dramatically effective way of communicating the benefits of the revolutionary seal. By 1951, the Tupperware Home Demonstration system was working so well that all Tupperware products were taken off store shelves to be distributed in this manner. The direct sales demonstration was a welcome diversion for women, whose involvement in the community mostly revolved around their family. Selling Tupperware products via the party sales method was an appealing career for these women, who had few career opportunities after their men returned from the war. As consumers relocated from large urban centers to homes in the suburbs, backyard barbecues became a favorite way for families and neighbors to spend leisure time. The new Tupperware products answered needs created by this popular pastime. The Party Bowl kept macaroni and egg salads fresh and cold outdoors, while The Pie Taker provided easy transportation for homemade desserts. The Dip 'N Serve™ Serving Tray functioned much the same way, making it simple to get chips and dip to and from the backyard or the picnic site.
The '60s were times of social upheaval with the family undergoing social changes. As two-income families became more common, women actively pursued career opportunities and Tupperware filled the ensuing product niche with designs like the Traveling Desk, Drawer Organizers, and the Plastic Carrying Case. The huge wave of baby boomers that began having children of their own created a need for sturdy, stimulating toys. Again Tupperware rose to the challenge, introducing an innovative line of toys like the Shape-O® toy, a fun-yet-educational design which challenged each stage of a child's development from functioning as a rattle for infants to promoting eye-hand coordination in toddlers. While the demand for specialized kitchen products soared, Tupperware kept pace with changing palates by offering storage products like the Mix 'N Stor® Container, and the Tortilla Keeper for serving ethnic dishes. Thanks to advances in medical technology, consumers were living longer than ever before, resulting in an increasing population of seniors. During this era, Tupperware introduced the Instant Seal, which catered to a mature population with not-so-nimble fingers.
Tupperware Parties
A Tupperware party advertisement from the late 1950s
Tupperware is still sold mostly through a party plan, with rewards for hosts and hostesses. In some countries like New Zealand, products can be purchased online without a salesperson. A Tupperware party is run by a Tupperware "consultant" for a host or hostess who invites friends and neighbors into their home to see the product line. Tupperware hosts and hostesses are rewarded with free products based on the level of sales made at their party. Parties also take place in workplaces, schools, and other community groups.
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. The multi-level marketing strategy adopted by Tupperware has been criticized as manipulative. 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. 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. Tupperware states this hurt direct sales. In countries with a strong focus on marketing through parties (such as Germany, Australia, and New Zealand), Tupperware's market share and profitability continue to decline. 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. The Chinese characters 特 百 惠 are used as the brand name and translate as "hundred benefit".
Feminist views vary regarding the Tupperware format of sales through parties and the social and economic role of women portrayed by the Tupperware model. Opposing views state that the intended gendered product and selling campaign further domesticates women and keeps their predominant focus on homemaking. The positive feminist views consider that Tupperware provided work for women who were pregnant or otherwise not guaranteed their position at work due to unequal gender laws in the workplace. The company promoted the betterment of women and the opportunities Tupperware offered women. The negative view includes the restriction of women to the domestic sphere and limiting the real separation between running the household and a career. The emergence of Tupperware in the American market created a new kind of opportunity for an underrepresented labor demographic: women, and especially suburban housewives.
Tupperware since 1946
Tupperware was developed in 1946 by Earl Tupper (1907–1983) in Leominster, Massachusetts
Tupperware is an American home products line that includes preparation, storage, and serving products for the kitchen and home. In 1942, Earl Tupper developed his first bell-shaped container; the brand products were introduced to the public in 1946. Tupperware develops, manufactures, and internationally distributes its products as a wholly owned subsidiary of its parent company Tupperware Brands; as of 2007, it was sold by means of approximately 1.9 million direct salespeople on contract.
In 2013, the top marketplace for Tupperware was Indonesia, which topped Germany as the second. Indonesia's sales in 2013 were more than $200 million. Tupperware was developed in 1946 by Earl Tupper (1907–1983) in Leominster, Massachusetts. He developed plastic containers to be used in households to contain food and keep them airtight, which featured a then-patented "burping seal". Tupper had already invented the plastic for Tupperware in 1938, but the product succeeded with the emergence of the "sale through presentation" idea, held in a party setting. Tupperware developed a direct marketing strategy to sell products known as the Tupperware party. The Tupperware party enabled women of the 1950s to earn an income while keeping their focus in the domestic domain. The "party plan" model relies on characteristics generally assumed of housewives (e.g., party planning, hosting a party, sociable relations with friends and neighbors). Brownie Wise (1913–1992) recognized Tupperware's potential as a commodity. She realized that she had to be creative and therefore started to throw these Tupperware parties. Wise, a former sales representative of Stanley Home Products, developed the strategy. As a result, Wise was made vice president of marketing in 1951. Wise soon created Tupperware Parties Inc.
During the early 1950s, Tupperware's sales and popularity exploded, thanks in large part to Wise's influence among women who sold Tupperware, and some of the famous "jubilees" celebrating the success of Tupperware ladies at lavish and outlandishly themed parties. At a time when women came back from working during World War II only to be told to "go back to the kitchen", Tupperware was known as a method of empowering women and giving them a toehold in the postwar business world. The tradition of Tupperware's "Jubilee" style events continues to this day, with rallies being held in major cities to recognize and reward top-selling and top-recruiting individuals, teams, and organizations. Tupperware spread to Europe in 1960 when Mila Pond hosted Tupperware parties in Weybridge, England, and other locations around the world. At the time, a strict dress code was required for Tupperware ladies, with skirts and stockings (tights) worn at all times, and white gloves often accompanying the outfit. A technique called "carrot calling" helped promote the parties: representatives would travel door-to-door in a neighborhood and ask housewives to "run an experiment" in which carrots would be placed in a Tupperware container and compared with "anything that you would ordinarily leave them in"; it would often result in the scheduling of a Tupperware party. Rexall, by now the owner of the Tupperware brand, sold its namesake drugstores in 1977, and renamed itself Dart Industries. Dart merged with Kraftco to form Dart & Kraft. The company demerged, with the former Dart assets renamed Premark International. Tupperware Brands was spun off from Premark in 1996; Premark was acquired by Illinois Tool Works three years later.
