One of the most remarkable events of 2024 in the direct selling industry was iconic direct seller Tupperware’s filing for bankruptcy. Tupperware was once synonymous with durable kitchen storage solutions and with party-plan selling. This article explores Tupperware’s history, the reasons behind its decline and how it could potentially revive its legacy.
Beginnings
Tupperware branded products were introduced in 1946 and were quite innovative in those days. With these airtight containers, food was to be preserved for longer periods.
Contrary to general belief, Earl Tupper’s products first appeared in retail outlets but not in home parties. Despite their breakthrough nature, people did not show much interest to these containers mainly because they needed demonstrations to understand how they worked. But Earl Tupper did not know this until he met Brownie Wise.
Brownie Wise and Transition to Party Selling
After the World War II, Brownie Wise was selling Stanley Home Products at home party demonstrations to earn some additional income. Stanley Home Products was a direct selling company founded by Frank Stanley Beveridge in 1931. In a short while, Wise began promoting Tupperware products at her home parties, too.
Around 1948, Brownie Wise’s extraordinary success in selling Tupperware products through home parties caught Earl Tupper’s attention. He asked Brownie to design Tupperware’s marketing strategy based on her experiences. Tupperware was withdrawn from retail stores in the early 1950s. Brownie Wise then, became the Vice President of the company and ran “Tupperware Home Parties”, company’s sales division. She was also the face of Tupperware, representing the brand on television, and newspaper and magazine articles.
Brownie Wise was fired by Earl Tupper in 1958. It was said that this sudden end was caused by disparities in managerial approaches.
Post-Wise Era and Recent Developments
The same year Brownie Wise was fired, Earl Tupper sold his company to the Rexall Drug Company for $16 million, divorced his wife, gave up his U.S. citizenship to avoid taxes and bought himself an island in Central America. In 1983, Earl Tupper died in Costa Rica at the age of 76.
After a decade of success in the U.S, Tupperware expanded into Europe. The first British Tupperware party was held in October 1960. In 1963, the company was present in six European countries. Then came launches in Japan and Australia.
In 1996, Tupperware became a publicly held company.
In the 2011-2015 period, company’s annual sales peaked at $2.6 billion. This went down to $1.6 billion in 2021 and to $1.3 billion in 2022.
Tupperware started selling its products in Target stores in 2022 and in Macy’s stores in April 2024.
In June 2024, management announced that they will close its last remaining U.S. factory in early 2025, shifting production to Mexico, where the company already has a presence.
Relations with the Direct Selling Community
In all these years, Tupperware chose to put a distance between itself and those direct sellers that employ a network marketing model.
Former CEO Rick Goings once said, “Direct selling left us, because the industry became dominated by buying clubs that looked like pyramid schemes.”
He also commented in another occasion, “We think MLM is not a sustainable way to do a direct selling business when all you basically are a wholesale buying club. So, no interest at all in going that direction.”
Bankruptcy
Tupperware was known for decades for its long-lasting, innovative kitchen storage solutions and home parties. After having declining sales and mounting debts in the recent years, it faced an eventual bankruptcy filing in September 2024.
One Tupperware share was being sold for a little over $1 on the New York Stock Exchange in September 2024, valuing the company at $56 million!
What Went Wrong?
Several answers to this question have been put forth, all of which seem to have had an impact:
1. Reliance on Its Sales Model
Tupperware’s sales model, once revolutionary, became a liability in the 21st century. With the rise of e-commerce and shifting consumer preferences, fewer people were interested in hosting or attending Tupperware parties. The company failed to modernize its sales strategy, which left it struggling to compete.
2. Lack of Brand Relevance
While Tupperware had been a household name for decades, it failed to stay relevant to younger generations. Millennials and Gen Z shoppers are more likely to prioritize sustainable, multifunctional products and prefer brands that align with their values. Tupperware’s brand image remained tied to a bygone era, failing to resonate with a younger audience.
3. Competition From Low-Cost Alternatives
Tupperware’s pricing strategy also worked against it. Competitors like Rubbermaid, Ziploc, and numerous private-label brands offered similar products at lower prices. As household budgets tightened, consumers often opted for these cheaper alternatives.
4. Slow Adoption of Digital Marketing
Tupperware was slow to adopt digital marketing strategies that have become vital for consumer engagement. Social media platforms, influencer partnerships, and online communities now play a crucial role in building brand awareness, but Tupperware lagged competitors who capitalized on these trends.
5. Internal Challenges and Financial Missteps
Tupperware faced internal management issues as shown in having three different CEOs in the last six years, and a lack of clear vision and direction, according to many observers. Thus, the company’s financial health deteriorated due to mounting debts and dwindling cash reserves.
You might also want to read what Tupperware’s ex-CEO Rick Goings had to say on the reasons to Tupperware’s decline in his article “What Killed Tupperware… and Why It Matters”.
What Can Tupperware Do?
Despite its challenges, Tupperware is not beyond redemption. Its name still carries a degree of nostalgia and trust, which I believe can be leveraged to stage a comeback. Below are some strategies the company can adopt:
- Embracing E-Commerce and Digital Sales
- Appealing to Sustainability-Conscious Consumers
- Rebranding for a Younger Audience
- Innovating and Diversifying Product Offerings
- Strengthening Retail Presence
- And Finally, Improving Financial Management
Tupperware announced in October 2024 that it reached an agreement with a group of its lenders to form “The New Tupperware Company”. It is envisioned that The New Tupperware Company will be rebuilt with “a start-up mentality using an agile methodology in dynamic phases”. The initial focus would be on global core markets including the U.S., Canada, Mexico, Brazil, China, Korea, India and Malaysia, closing down the remaining 62 markets.
Then in late November 2024, it was announced this time that Tupperware’s assets were sold to Party Products LLC, a creditor-backed company. Party Products is comprised of the lenders such as Stonehill Capital Management LLC and Alden Global Capital LLC.
Tupperware’s decline is a cautionary tale of what happens when a brand fails to adapt to changing market dynamics. However, the company still has a chance to regain its footing. Reviving Tupperware will not be easy, but with the right strategy and execution, the company can turn its well-known past into a promising future.
Tupperware proudly states it has more than 8,500 functional design and utility patents for its solution-oriented kitchen and home products. For a brand that revolutionized food storage and party-plan selling once, innovation and adaptability can help it do so again.
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Hakki Ozmorali is the Founder of WDS Consultancy, a management consulting and online publishing firm in Canada, specialized in providing services to direct selling firms. WDS Consultancy is the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki Ozmorali is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.
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Price of Tupperware just got to pricey.. My customers started complaining about the prices when they stated going up. I gave it up when Covid hit. Then Walmart had there cheap plastic listed as Tupperware.