Tupperware relied on social gatherings for explosive growth in the mid 20th century. In the 21st century, it is social distancing that is fueling sales.
Restaurant pain has turned into Tupperware's gain with millions of people in a pandemic opening cookbooks again and looking for solutions to leftovers. They've found it again in Tupperware, suddenly an “it brand" five decades after what seemed to be its glory days.
The company had appeared to be on life support, posting negative sales growth in five of the last six years, a trend that seemed to be accelerating this year.
Long gone was the heyday of the Tupperware Party, first held in 1948, which provided women with a chance to run their own business. That system worked so well, Tupperware took its products out of stores three years later. But it has struggled as more families gave up making dinner from scratch and also dining out more.
Then the pandemic struck.
Profit during the most recent quarter quadrupled to $34.4 million, Tupperware reported Wednesday.
The explosion of sales caught almost everyone off guard and shares of Tupperware Brands Corp., which had been rising since April, spiked 40% to a new high for the year. Shares that could be had for around $1 in March, closed in on $30 Wednesday.
Tupperware stands apart from most other companies that have thrived in the pandemic. Unlike Netflix, Amazon.com, Peloton or even DraftKings, it doesn't rely on a hi-tech platform.
However, it's certainly not alone as the pandemic bends how we spend our time more rapidly perhaps than any point in our lifetimes.
On Monday the toymaker Hasbro said that its games division, which includes board games like Monopoly, saw a 21% jump in revenue.
On Wednesday, Tupperware reported quarterly adjusted earnings of $1.20 per share, triple what Wall Street had expected. Revenue of $477.2 million was about 30% higher than forecasts and 14% better than last year.
CEO Miguel Fernandez said the company, based in Orlando, Florida, had shifted more heavily to digital sales to accommodate those sheltering in the pandemic. He also noted "increased consumer demand."
The company earlier this year had begun a turnaround campaign. Fernandez, who once led Avon, was named CEO in March just as COVID-19 infections began to spread in the U.S.
FAQs
Tupperware is currently looking to regain its financial footing. The brand recently stated that it was looking for new lines of credit and investors, or it risks folding.
What is happening with Tupperware? ›
Sales have declined in recent quarters as the world re-opened. In a U.S. Securities and Exchange Commission filing on Friday, the company flagged doubts about its ability to continue as a going concern for at least a year and forecast inadequate liquidity to fund operations.
Does anyone buy Tupperware anymore? ›
As of 2020, Tupperware said, 3.2 million people sold its products worldwide, with nearly 600,000 of them reported as "active" sellers. Since then, the company has not updated the total number, while the "active" ranks have shrunk to 284,000.
Is Tupperware in trouble financially? ›
Tupperware shares are down 33% year to date and have lost 45% of their value in the past 12 months. Sales have been declining at Tupperware for years, as competition in the plastic storage container business has increased dramatically, with competitors offering products at substantially lower prices.
Why do people buy old Tupperware? ›
By buying vintage, you're practicing sustainability and reusing something from a different generation. Plus, Tupperware is one of those kitchen workhorses that still functions perfectly after decades of use.
Who bought out Tupperware? ›
Tupperware was acquired by Kraft, the food company, in 1980.
What is Tupperware called now? ›
In 1958, Tupper sold The Tupperware Company for $16 million to Rexall. In December 2005, Tupperware Corporation changed its name to Tupperware Brands Corporation to reflect the company's increasing product diversity.
Is Target going to sell Tupperware? ›
Tupperware containers will now be available at Target, in a major shift for the 76-year-old brand.
Will Tupperware survive? ›
Tupperware Brands warned that the 77-year-old company may not survive for another year and forecast inadequate liquidity to fund operations, the seller of plastic airtight food storage containers said in a filing with the SEC on Friday.
Should I throw away my old Tupperware? ›
While there is no set timeframe for replacing plastic food containers, experts say they should be tossed out when they show visible wear, chips, cracks, or signs of stains and odors. In place of plastic containers, experts recommend opting for glass or stainless steel instead.
The transition will happen in phases throughout the remainder of the year. Tupperware currently has plants in China, India, Belgium, Brazil, South Korea, Mexico, Portugal and South Africa.
Will Tupperware replace my old Tupperware? ›
LIMITED LIFETIME WARRANTY
In the event of a product's failure to meet the foregoing warranty, Tupperware, at its election, will either replace the affected product with a like or similar product or provide toward future purchases of Tupperware® brand products.
Why is Tupperware shutting down? ›
The nearly 80-year-old company cited the closure as part of a multi-year strategy to simplify its supply chain and operations and create efficiencies, according to the spokesperson.
Why not to use Tupperware? ›
Bisphenol A, more commonly known as BPA, is a chemical that, according to the United States Institute of Environmental Health Sciences, has been used for years in the production of certain plastics to make them more durable and shatter-resistant. Unfortunately, BPA can also make them potential health hazards.
Which country owns Tupperware? ›
Tupperware is an American company that manufactures, and internationally distributes preparation, storage, and serving containers for the kitchen and home. It was founded in 1942 by Earl Tupper, who developed his first bell-shaped container and introduced the products to the public in 1946.
Will Tupperware stock recover? ›
What are analysts forecasts for Tupperware stock? The 4 analysts offering price forecasts for Tupperware have a median target of 6.38, with a high estimate of 10.00 and a low estimate of 3.00. The median estimate represents a 20.55 difference from the last price of 1.31.
What can I buy instead of Tupperware? ›
Healthier Alternatives To Plastic Tupperware
- Cotton Reusable Sandwich Wraps. Skip the plastic wrap and keep your sandwiches fresh with these cute little eco sandwich bags. ...
- Paper Snack & Sandwich Bags. ...
- Cotton Muslin Produce Bags. ...
- Beeswax Wraps. ...
- Glass Jars. ...
- Glass 'Tupperware' Alternatives. ...
- Shower Caps. ...
- Compostable Cling Wrap.
According to a statement from Tupperware's CEO Miguel Fernandez on Monday, the brand is expanding to sell their products at Target, both in-store and online, with a curated selection of offerings. "We're honoring our legacy by continuing to host timeless Tupperware parties and we'll offer our products in new channels.
