Why did the iconic food container company collapse?

Who doesn’t see a food container and immediately think of “tupper”, short for Tupperwareeven if it is any other brand? And it was for almost 80 years a company so successful that its name has remained in the collective imagination to name the items in which we transport snacks, but the streak ended and finally collapsewell He could not resolve his debts.

The American multinational home products company Tupperware began the process to declare bankruptcy, dragged by the drop in sales, and will seek court approval to continue operating and facilitate a sales process to protect its brand.

Tupperware Brandsknown worldwide for its plastic food containers for storage, voluntarily started the procedure filing for chapter 11 in the United States Bankruptcy Court of Delawarewhich sank the stock by more than 50% on the New York Stock Exchange and led to its subsequent suspension.

Who owns Tupperware and when was it founded?

Tupperware was founded in Massachusetts in 1946 by chemist Earl Tupper, who designed the emblematic airtight containers plastic to help families preserve their food during the postwar period; and now the Tupperware company is owned by Tupperware Brands.

The iconic brand also became known for its home delivery sales, which became known as “Tupperware parties.”

READ: Why is Tupperware, a food container company, on the brink of collapse?

Why did the Tuppeware brand collapse?

Tupperware had been warning since before 2020 that its ability to stay on the market was in doubt; however with the confinements Due to Covid-19, the use of containers to transport food to school or work decreased, so it would be a turning point for the firm.

And from then on income continued to fall, that is, in 2020 was when the kitchenware company, which led the food storage business for decades, had problems stronger that made one doubt its possibilities of lasting.

Finally, the company could not keep up with the changing pace of retail and changing consumer tastes who headed to the Internet to buy many of the basic products that Tupperware sold.

In 2022, the company still relied on direct sales through an army of 300 thousand sellers.

But shoppers were increasingly purchasing similar, cheaper products online.

Tupperware Brands is filing for bankruptcy

The company had already delayed the presentation of the 2023 annual accounts in March of this year, and in June announced its plans to close its only factory in the United States and lay off almost 150 employees.

Bloomberg informed of the possible bankruptcy of the firm.

On Monday, the shares lost 57.51% in a single day after learning this information according to which the Orlando group (Florida, southeast).

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In mid-August, the group explained that it was still “facing liquidity problems important” and had “doubts about his ability to continue his activity.”

Tupperware has been dealing with several hundred million dollars of debt for years and has already restructured its liabilities once, in 2020.

Since 2022, the group has not published its accounts. In that year, its turnover fell to $1.3 billion, 42% less than five years earlier.

Tupperware goes bankrupt: why did the iconic food container company collapse?

And during its start in 1946, Tupperware used an estrategy that worked perfectly, through the so-called Tupperware Partiesso famous in the 1960s, where housewives were invited to offer refreshments while the products were shown and great sales of food containers were achieved.

A decade after starting its activity in the United States, Tupperware expanded to Europe and by the mid-60s it already had a presence in six European countries, and then made the leap to the Latin American and Asian markets.

Peero Times have changed and it seems that the brand has not evolved at the same time as the market and today it takes its toll; Well, the food container manufacturer, Tupperware, has tried to attract a younger audience but has not completely succeeded.

Since the young public now opts for reusable products, whether for fashion or environmental awareness, this is now reflected in a clear drop in sales that seems to have no turning back.

Tupperware uses a direct trade workforce and sellers earn a percentage of all food containers, in addition to marketing them through their website.

And it recently began selling its products also in retail supermarket chains in the United States, such as Target, with a view to reaching younger shoppers and has expanded its range from food containers to kitchen utensils.

He even designed items like a grill that works in the microwave, but those changes were too late, as Tupperware finally collapsed and is going bankrupt.

What does the Tupperware logo mean?

Inspired by the lid of a paint can — since it preserved its contents for years without the product evaporating—, created the world famous Tupperware® seal. This is how the Tupper Plastics TM brand was consolidated in 1946, with more products that revolutionized the way of preserving food.

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