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September 19, 2024
Can Tupperware Rejoin the Food Container Party?
Tupperware filed for Chapter 11 bankruptcy protection Tuesday, giving in to dwindling demand for its once-iconic food storage containers and mounting financial losses.
Founded in 1946 by chemist Earl Tupper to help war-weary families save money on food waste, Tupperware was historically sold to consumers through so-called direct sales, most commonly at “Tupperware parties,” similar to cosmetic company Avon’s business model. It was a direct marketing event, typically organized by a woman and hosted in a customer’s home or her own — so she could sell Tupperware products and earn commissions.
It revolutionized the woman’s role in the kitchen and the U.S. economy at the time, turning homemakers into saleswomen. Through the success of in-person sales techniques, the food storage pioneer now ranks as one of the brand names people use as generic terms. The list also includes Q-Tips, Band-Aid, Kleenex, and Sharpie.
Tupperware’s struggles began in the ‘80s when several of Tupperware’s patents expired and rivals — from off-brand plastic food storage containers to major players like Rubbermaid, OXO, and Glad — entered the market with cheaper alternatives. Recycled takeout containers also offered new competition.
Women joining the workforce also limited their time to attend Tupperware parties. In the early ‘90s, Tupperware began sending out unsolicited catalogs in its first move into direct mail while launching its e-commerce site in 1999, but it continued to emphasize one-on-one contact with customers rather than selling its products in stores.
In its Chapter 11 filing, Brian J. Fox, Tupperware’s chief restructuring officer, wrote that the strengths of Tupperware’s direct-to-consumer marketing model became “weaknesses,” saying the company failed to develop a diverse sales strategy, including for online shoppers.
Only in 2022 did it set up a storefront on Amazon and start selling at Target as part of a plan to grow the business through multiple retail channels and get its products in front of younger consumers who never experienced the era of Tupperware parties. It began selling at Macy’s this year. Fox wrote in the filing, “In stark contrast to the early days of the company, nearly everyone now knows what Tupperware is, but fewer people know where to find it.”
Tupperware also long promoted the durability of reusable, long-lasting plastic, but consumers are increasingly interested in more sustainable materials, such as glass and stainless steel, Jennifer Christ, manager of consumer and commercial research for the Freedonia Group told The Associated Press. A sustainable range was introduced in 2019, along with a commitment to create a circular economy for plastic.
Laurie Ann Goldman, Tupperware’s president and CEO, blamed the bankruptcy on a “challenging macroeconomic environment” over the last several years. While receiving a temporary boost during the stay-at-home phase of the pandemic, Tupperware’s sales slowed as restrictions eased, and losses grew due to rising raw material costs and other expenses tied to supply-chain disruptions.
The company said in a press release that it will seek bankruptcy court approval “to facilitate a sale process for the business in order to protect its iconic brand and further advance Tupperware’s transformation into a digital-first, technology-led company.”
Discussion Questions
What turnaround strategy do you see for Tupperware?
What are the brand’s strengths and weaknesses?
Poll
Loading …BrainTrust
Gary Sankary
Retail Industry Strategy, Esri
Bob Amster
Principal, Retail Technology Group
Warren Shoulberg
Senior Contributor, The Robin Report
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There is still some equity in the Tupperware name, but the business needs a complete overhaul. The selling method is dated and no longer drives growth. The products are way too expensive compared to other brands and some very good store own brands, such as those at Target. And there isn’t nearly enough innovation in terms of problem solving in kitchenware. Resolving all of these things is a very tall order, and it is highly unlikely that Tupperware will ever be the life and soul of the party again. It’s fight now is to simply remain in the room.
And honestly, the point about sustainability and plastic: that is not the primary cause of the demise. Rightly or wrongly, plastic containers are still predominant in kitchen storage. And the macro environment is certainly challenging, especially with the downswing in demand for home items, but Tupperware was in financial trouble long before this became an issue!
There are a few things that got them into trouble.
An American Tragedy? Well, that’s probably stretching it – no pun intended – but certainly a clear example of how early mover advantage doesn’t last forever. Tupperware is unique in that an innovative product was paired with an innovative selling technique – indeed, it’s hard to decide which was the more impactful – so it’s hard to decide which “side” to concentrate on. I’m going to play the mushy sentimentalist here: I think how they sell is more important than what they sell…translation: favor DTC, with a heavy dose of nostalgia.
Today, Tupperware remains a brand name associated with quality and convenience, but competition is abound, and the Tupperware “experience,” of its selling process, is antiquated. For too many reasons to list, the Tupperware experience was amazing, but it now belongs in the hall of fame. Even so, it may be able to make a go as a retail or Amazon brand since the brand name still has value. Db
Notwithstanding that Tupperware became the iconic brand in its industry Like Xerox for photocopiers, Hoover (in England) for vacuum cleaners and others, the segment has many more competitors already entrenched in it. Unfortunately, I think that ship has sailed. Nobody will miss it.
I struggle to see what advantage Tupperware offers consumers over their less expensive, and more easily accessible alternatives. Just like many people ask for a Kleenex when they need a tissue, today’s consumers will still unconsciously grab for “Tupperware” for leftovers even if it is really another brand. Ultimately, if Tupperware can’t successfully complete a 180, consumers won’t notice.
All these “have a get together at your home” MLM products seem to be proxies for social media, which we have in spades now.
I don’t see how Tupperware has a future. Pyrex, yes. Plastic containerware…no.
I’m digging through my notes from marketing school, circa 198something, to find that model of the product life cycle. The Tupperware brand name is strong enough that it’s the generic name for any food storage brand in our house. In execution, I don’t think there’s a single piece of Tupperware in the house. These products are tough to differentiate in the market. They all do the same thing, and for the most part, in the same way. So, the last metric to differentiate on is price. Tupperware will need to really address price to have any chance of bringing this product back to relevanance.
The talking points you give the market are ecommerce, omnichannel and technology with a strong dash of AI. Ironically, the reason Tupperware has any sales at all is probably its legions of loyal sellers which have proven resilient at selling a sub-par, plastic product.
Tupperware was built on innovation and like the many innovators mentioned by my colleagues, it failed to adapt. I suspect if it executes its talking points strategy without innovation it will also fail. There are no number of channels or amount of technology that will save any company from itself. Put differently, if you had a single dollar and could only invest that dollar on strategy to turn Tup around, would you put it on one of the talking points or bet it on modernizing and innovating its product line? Innovate or die – wasn’t that a rally cry once?
The management of Tupperware should be embarrassed — and kicked out too — for letting such an iconic brand deteriorate over the years, with a bad outdated business model only equaled by its bad outdated product line. But any company in the housewares sector that doesn’t take a hard look at acquiring this brand is equally guilty of bad leadership. With the right distribution strategy and a revamped product line — can you say plant-based materials? — Tupperware can be a world class and profitable brand oce again.
Good points! The eco-friendly version for the current century!
Tupperware, for all its innovations many decades ago, night be aging itself out of existence. Being both late and slow to evolve never ends well. (And look at how many examples of that we have in the market today.) With so many other choices available to customers, Tupperware wouldn’t be missed for long. (And look at how many examples of that we have in the market today.)
Tupperware’s days are numbered. A changing consumer, lack of innovation, high prices & poor distribution will see Tupperware joining the “has been” category of once leading brands like the Kodak Instamatic Camera. Sad but true.