Is Tupperware too indestructible to survive?

Peter de WaardNov 7, 202216:01

The tupperware party came to the Netherlands at the same time as beatlemania. The American producer of plastic containers that can be closed watertight and airtight thanks to an ingenious lid, opened a factory in 1961 near our country, in Aalst, Belgium.

Soon everyone was crazy about Tupperware. The trays were indestructible and did not smell of plastic. They could withstand both very high and very low temperatures, just when the modern kitchen was fitted with a freezer. The reviews about the food containers were as lyrical as the Beatles album Revolver. ‘Art for 39 cents, seamless and soft like jade, reflecting light like alabaster or pearls.’

The marketing concept was also unique. The Tupperware was brought to the woman through consultants. They came on a home visit and demonstrated the ease of use, especially the art of opening and closing the lid. The consultant received 25 percent of the proceeds, which was a nice extra income at a time when women were often still confined to their homes during the day. The hostess was allowed to choose a few presents, depending on the turnover. Everyone wanted to organize a party with neighbors and friends. At one point, the world had a Tupperware party every 2.6 seconds.

But for several years now things are going less well with the company Tupperware. Last week it was announced that the American company is on the brink of bankruptcy. Four years ago, a stock cost $63. At the beginning of this year it was $20. On Friday, the share price fell to $ 4, after a 20 percent drop in sales was announced earlier in the week. The company only has $103 million in cash, while debt is $704 million.

The problems don’t come out of the blue. In the Netherlands, Tupperware already stopped the parties at the beginning of last year. One of the reasons was the pandemic, which made the parties no longer possible for some time. The war in Ukraine has undermined the supply chain. The strong dollar isn’t helping either. And in China there are still lockdowns.

Since the outbreak of corona, Tupperware has replaced the parties with an online sales channel, but so far this has not been able to reverse the decline in turnover. Apparently the consultants cannot simply be exchanged for the internet.

Last week a spontaneous strike broke out in the tupperware factory in Aalst, Belgium, where 260 employees fear for their jobs. Tupperware thinks that the loss of turnover is due to an old-fashioned image. That is why new products are being launched, such as micro barbecues and carafes for coffee and tea. But maybe that’s not the real problem. Tupperware may sell so poorly, because after 70 years everyone already has an indestructible set. Just like everyone else the indestructible LP Revolver has.

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