The rise and fall of the iconic food container brand Tupperware
Tupperware, the renowned plastic food container company, has filed for bankruptcy after years of dwindling sales and increasing competition. The US-based firm, which operates its UK headquarters in Milton Keynes has entered Chapter 11 bankruptcy proceedings due to a sustained decrease in demand over the past decade.
Bankruptcy filings reveal that Tupperware's estimated assets range between $500m and $1bn, with liabilities between $1bn and $10bn, and the company has between 50,001 and 100,000 creditors. In 2023, Tupperware warned without new investment, its survival was at risk.
Despite attempts to secure additional funding, efforts to rescue the business have been unsuccessful. This signifies the end of a long-standing attempt by the company to rejuvenate its brand amidst changing consumer tastes and a fiercely competitive market.
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Company executives are now seeking new owners to "protect its iconic brand and further advance Tupperware's transformation into a digital-first, technology-led company". Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, told The Guardian: "There is still a chance a buyer for the business can be found, but with plastic seen as far from fantastic, among eco-aware consumers, revitalising the brand will be an uphill struggle.'' Tupperware said it would seek court approval to continue operations during its bankruptcy proceedings.
What went wrong for Tupperware?
Tupperware has become so iconic in food storage that its name is often used generically to refer to any plastic container, regardless of the brand. The brand first burst onto the scene 77 years ago, when inventor Earl Tupper teamed up with saleswoman Brownie Wise to promote an innovative new way of storing food for the housewives of America.
The product was highly innovative for the time, using new plastics to ensure freshness like never before. But what truly set the brand apart was its innovative approach to sales: the Tupperware Party. Instead of traditional store sales, Tupperware had enthusiastic salespeople.
When Tupperware burst onto the scene in 1946, it revolutionised food storage
The key to this sales model was that it wasn't just about selling products - it was about creating an engaging experience. Guests could handle the products, witness demonstrations on how they kept food fresh, and enjoy the social aspect of the event.
This direct-selling approach helped Tupperware build a loyal customer base and establish the brand as a household name, with several direct-selling brands, including makeup company Avon, later adopting a similar approach. However, as the decades passed, the brand failed to adapt to changing times.
The allure of traditional Tupperware parties has waned as online shopping has become more prevalent, with consumers preferring the ease of browsing and buying products online rather than attending home demonstrations. Consequently, the UK branch of the company abandoned the party model in 2003. Moreover, Tupperware faced stiff competition from other brands offering similar products at cheaper prices.
This surge of alternatives affected the brand's market share and dwindled its customer base. Furthermore, as younger consumers have increasingly adopted more eco-friendly products like beeswax paper for food preservation, the brand has not managed to shift away from plastic use.