Goodbye Tupperware: Why the well-known brand might soon become history
Tupperware boxes are a ubiquitous sight in kitchens around the world, but their days as a household staple are numbered.
It appears that cracks have emerged in the once revolutionary air-tight sealing business and with falling sales and rising debts, the US-based company may soon go under.
The world saw the birth of Tupperware products in 1946.
Tupperware containers have become synonymous with the kitchen. However, the inspiration for its creation was to assist war-weary families in saving money on costly food waste.
In the 1950s and 60s, ‘Tupperware parties’ helped make the containers iconic and its air-tight and water-tight containers took the market by storm.
But it wasn’t just the airtight boxes that helped set Tupperware apart from the run of the mill containers. The US company’s core business model of using self-employed salespeople, who sell from their own houses, helped in making Tupperware the brand it is today.
The brand is is sold in 100 countries across the world.
And at its peak, it was reported that every 1.5 seconds, somewhere on the planet, a Tupperware party was thrown and it sold over $2.6 billion (Rs 21, 345 crore) worth of product.
The shares of the 77-year-old US company tanked by 50 per cent on Monday after it announced that there was “substantial doubt about the company’s ability to continue as a going concern,” and that it was working with financial advisers to find financing to stay afloat.
It added that it didn’t have enough cash to fund its operations if it didn’t secure additional investment.
The New York Stock Exchange also warned that the company’s stock was in danger of being delisted for not filing the required annual report.
Sales have steadily fallen the past couple of years. This freefall was arrested during the COVID-19 pandemic when people stayed home and cooked and baked for themselves, but this relief was shortlived.
From having sales of nearly $500 million (Rs 4,104 crore) in the fourth quarter of 2020, the company reflected just $313 million (Rs 2,568 crore) in its most recent fourth quarter.
There’s also the heavy criticism against plastic. Studies have shown that Phthalates, which are used to make plastic more flexible and are found in food packaging and plastic wrap, have been found in measurable levels across the US population.
Another reason for the fall in Tupperware sales can be attributed to the distribution model itself. In this digital age, the face-to-face model doesn’t hold relevance.