Tupperware: the rise and fall of a kitchen icon

If you grew up in the last century, chances are you have some memories of Tupperware. Mine are of the colorful plastic cups with the matching lids. My grandma owned them and I always thought they were genius as they kept wasps and other nasty things from going in your soda when drinking outside.

That was the thing about Tupperware back then. It was a hotbed of innovation that changed the way people stored and served food. It solved many kitchen-related problems. The company, founded in 1946 by Earl Tupper, also created opportunities for millions of women who sold products through home parties and earned commissions. Tupperware was a symbol of modern living in every sense.

But today, Tupperware is in trouble. The company warned in a regulatory filing last Friday that there is "substantial doubt" about its ability to continue as a going concern.

Tupperware's troubles stem from a combination of factors, including changing consumer preferences, increased competition, and some internal mismanagement.

Most significantly, Tupperware is failing to connect with a new generation of consumers who prefer more eco-friendly options for food storage and have no real affinity with the direct selling model that was favored by consumers of the past. Even older shoppers, who once eagerly attended Tupperware parties, have moved on thanks to being able to easily shop online.

Tupperware also faces stiff competition from other brands that offer similar or better products. Brands like Rubbermaid and Pyrex are often much cheaper. They also sell their products in stores like Target and Walmart, making them more visible, accessible and convenient than Tupperware's direct-selling model.

This stiffer competition has also made Tupperware less attractive to sellers as it is more of a struggle to shift items. This has been exacerbated by face-to-face interaction falling of favor during the pandemic. In North America, the sales force has fallen by 29% in the space of a year - that's 20,554 fewer people now selling Tupperware products: a real body-blow for the reach of the brand.

On top of all of this, Tupperware is facing a lawsuit from investors who accuse it of misleading them about its financial situation and internal controls. The New York Stock Exchange has notified Tupperware that its stock could be de-listed for not filing its annual report for 2022 on time.

The results of all this turmoil are not pretty. Tupperware's stock price has plummeted by 98% in the past year. The company's market value is now less than $60 million, compared to more than $3 billion in 2013. That makes it incredibly difficult to raise new capital, which it must do if it is to cover losses and continue trading.

If it can sort the financials, one of the potential solutions is to move away from its direct selling model to selling in retail - something it has already done in a very gentle way with a limited selection of products being sold in Target. But even this radical step does not guarantee success. Tupperware will need to justify its desire for shelf space alongside competing brands, and that means getting back to its innovative roots in a very serious way to produce gadgets and items that unique and desirable - a tough ask for a company under enormous pressure.

Unless Tupperware can find a way to reinvent itself and appeal to new generations of consumers, it may not outlast the plastic containers that are still stuffed at the back of cupboards and on the top shelves of pantries in homes the world over.

More of my comments and thoughts are featured in this CNN article: