Being a generic brand is not always a guarantee of success. Tupperware is a perfect example of this. The American brand, synonymous with plastic boxes around the world, is at its worst.
On Monday, the Orlando, Florida-based company plunged on the stock market with its price falling nearly 49%, its biggest drop ever recorded. Tupperware shares are now worth just $1.30, up from more than 37 in 2021 and 95 at its all-time peak in 2014.
With $700 million in debt, Tupperware saw its revenue plummet nearly 20% last year to $1.3 billion. Since 2014, the drop has even reached 50% (2.6 billion dollars at that time). The company is running out of cash to finance its operations and the banks no longer want to finance it.
“Tupperware has embarked on a journey to turn around our operations and today marks a critical milestone in addressing our capital and liquidity situation,” the company’s chief executive officer, Miguel Fernández, said in a statement. The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate steps to seek additional financing and correct our financial condition.”
expensive products
Tupperware is considering layoffs and the sale of some of its real estate assets.
The American company, which already had to reduce its number of production sites in recent years (in 2018 in France in Joué-lès-Tours) is now threatened with bankruptcy. And while the Covid period marked by store closures and lockdowns has restored a semblance of luster to this 77-year-old company, the renaissance was short-lived.
More than ever in competition in its core business with furniture brands like Ikea or bazaars like Action, the company suffers from an outdated sales model that no longer appeals to young consumers. Tupperware’s business model is, in fact, meeting sales, which no longer has sales on its candles with young urbanites.
“There’s a big drop in the number of sellers, a pullback from consumers in home products and a brand that still hasn’t fully connected with young consumers,” said Neil Saunders, an analyst at GlobalData. CNN. The company was once a hotbed of innovation with problem-solving kitchen gadgets, but it has really lost its edge.”
Quality products but considered too expensive. Count, for example, 57 euros for a salad spinner or 33 euros for plastic strainers… Products that are two or three cheaper on Amazon, for example.
Source: BFM TV
