There was a time when everyone was talking about Tupperware. And housewives were being invited to Tupperware ‘parties’ every week. But times have changed. And Tupperware has quietly filed for bankruptcy…
Retro, ‘original’ bell-shaped Tupperware containers…
For me, Tupperware was the innovation that made the world ‘tub’ part of my everyday kitchen vocab-ulary. For millions, it was a beloved culinary accesssory – even a necessity. And it introduced many ‘stay-at-home’ Moms to the business world…
A true icon
The name ‘Tupperware’ is truly a kitchen icon. Like Chlorox, Kleenex and other legendary brands it has come to be used as the generic descriptor for all types and brands of plastic kitchenware. And that’s no small achievement!
I remember my Mom being invited to Tupperware parties by many of her friends and relatives. She got to the point where she was turning them down as politely as possible. There’s only so much room in the fridge and freezer, after all. We were one of the first families on our block to have a big chest freezer in the basement. Still, there came a time when Mom said, “Enough, already!”
Origins…
“Tupperware was founded in 1942 by Earl Tupper, who developed his first bell-shaped container and introduced the products to the public in 1946,” Wikipedia tells us.
As most gooks know, the polyethylene containers were designed to keep foods fresh by maintaining an airtight seal. Their famous ‘burping seal’ was patented in 1949.
The company became one of the first to employ armies of women, even before Mary Kay (1963) and Amway (1959), using a ‘sales through presentation’ business model. By 2007, the brand was sold by approximately 1.9 million direct salespeople.
Years of problems
Keeping a low profile in recent decades, the company began to impress consumers in foreign markets. As of 2023, it was doing well in Germany and even Indonesia, where it was a recent arrival. But the home market was showing signs of weakness.
This past Tuesday, it filed for Chapter 11 protection.
“The party is over for Tupperware,” Susannah Streeter, head of money and markets at UK investment platform Hargreaves Lansdown, said in an advisory message to clients. “There is still a chance a buyer for the business can be found but, with plastic seen as far from fantastic among eco-aware consumers, revitalizing the brand will be an uphill struggle.
A perfect storm
Streeter also notes, the brand has been abandoned by many younger buyers in favour of competing food storage solutions.
As well, observers say Tupperware is so well-made, from such durable materials, that it lasts for generations. New families often receive hand-me-down Tupperware sets from older friends and relatives who are ‘overstocked’.
In addition, millennials and their successors no longer cook as much as they once did. And so, are not storing as much; not making big batches and stockpiling, or even cooking ahead for the coming week.
Which brings up another factor that may be contributing to the company’s decline. Many younger folks have turned to meal-portioned foods, and the convenience of take-out and delivery.
A precipitous fall
Tupperware disclosed, in an official government filing in April last year, that it was close to declaring bankruptcy. It owed almost $350 million and owed more than $150 million in interest payments.
The company closed its only US manufacturing plant earlier this year, laying off 148 workers.
Tupperware shares have plunged 74 percent in value since the beginning of this year, currently trading at only about $0.50.
My take
Tupperware’s leadership should have seen the crash coming. The company should have explored diversification opportunities sooner.
Tupperware containers have long been used by hobbyists and handyfolks for their storage needs. How hard would it have been to aim a new marketing push at them? Why not reach out to campers, hikers and other outdoors lovers, touting the water- and air-tightness of their products?
And how about placing greater emphasis on their tools – such as spatulas, ladles, cutting boards and the like?
A clear message from the marketeplace
In an era when the retail sector is moving massively to online sales models, why didn’t Tupperware do more to reinvent itself as a broader-based retailer, rather than just manufacturer selling only its own products?
There are so many questions that could have been asked. It seems Tuppeware just didn’t ask them. Or, at least, hasn’t, yet…
The great irony in all this is, the company’s own products may well outlive it!
Maggie J.