Tupperware had become such a habit of everyone that when asked which plastic to use for food, the name of Tupperware came out of the mouth of many. But now Tupperware’s sales are down and the industry is in shambles. Therefore, this 78-year-old American company has filed for bankruptcy.
The food storage container firm said it will seek court permission to begin selling the business.
In recent times, the company has tried to reach out to younger consumers by revamping its products. But, their efforts were not successful.
Last year, the company had warned of bankruptcy. The company had said that the fund should be raised quickly otherwise the company will face bankruptcy. The company’s shares have fallen more than 50 percent this week following news of the bankruptcy.
There was a slight increase in the demand of Tupperware during the Corona period. But, after Corona, many people preferred home food and started making it at home. Since then, the company has noticed that the demand for Tupperware is declining. Rising cost of raw materials, increased wages and transportation costs have reduced profitability.
Laurie Ann Goldman, CEO of Tupperware, said in a statement to investors that the company’s financial position has been severely impacted by the challenging macroeconomic environment over the past several years.
Tupperware was founded in 1946 by Earl Tupper. He also got a patent for “Flexible Airtight Seal”. Many families could not afford a refrigerator. Tupperware was widely used during that time to keep food fresher for longer. But, there was no immediate success in this industry either. Brownie Wise, a saleswoman, took the brand home. These Tupperware sellers were women who would go door to door to sell Tupperware to women. It was known as Tupperware Parties.
According to the company, Tupperware is currently sold in 70 countries.
But, now consumers have started using eco-friendly containers to store food instead of plastic. So the party is over for Tupware, said Hargreaves, head of money and markets at Lansdowne.
All is not well in this 77-year-old American company that once revolutionized the field of airtight containers. Due to increasing debt, falling consumption, this company is facing the risk of losing its investment.
Over the past few years, the company has tried to revamp its products and also try to create a niche among the younger consumers, but this has not stopped the decline in consumption.
In the 1950s and 1960s, Tupperware parties revolutionized consumerism. These airtight and spill-proof products quickly established themselves in the market.
Their business mainly depended on selling products from their own homes. However, this type has now gone backwards and in the United Kingdom, such distribution has been stopped since 2003.
Now the seniors of the company feel that it is difficult to survive in the market without new investment.
Tupperware’s position improved a bit during the Covid pandemic as people started baking and cooking at home. This halted Tupperware’s share decline, but the rise was short-lived.
Sales have since declined. The main reason for this, says Shuttleworth, is that the company has not brought anything new to the market in the last 10 to 20 years.
The lack of innovation is already a cry for this company.
This company was founded in 1946 by Earl Tupper but Brownie Wise was the face of this company in society.
Tupperware home party in sarasota, florida in 1950’s
Tupperware has often missed opportunities when it comes to change, says Neil Saunders, executive director of global data. It has been seen from selling only through parties in terms of products and distribution. All this affects the engagement of young and old customers.
New consumers like eco-friendly products, things like beeswax paper that keep things fresh.
According to retail analyst Richard Hyman, Tupperware’s products were difficult to imitate, so the company benefited greatly.
The company has tried to diversify its products. It has also planned a strategy to meet its target in the retail chain in America and has introduced different products for cooking.
Over the past ten years, Tupperware has faced many challenges. Perhaps the company may be in a different position now.
But now the company’s superiors have no chance to think that some miracle can happen. Due to lack of large funds, the company may collapse.
