Put a lid on it… Tupperware's leaking profits. The 77-year-old food-storage icon said that it may have to shut down, and that it’s hired advisers in a bid to seal its survival as sales slump. Since the news hit last week, its stock has plunged nearly 50%. Tupperware enjoyed a pandemic boom as locked-down shoppers breathed new life into leftovers, but it didn't last.
The Tupperware party’s over… Last year sales dropped 18%, and the biz ended the year with $700M+ in debt.
Trays not chic: Tupperware rose to fame with 1950s "Tupperware parties," but has struggled to catch on with younger generations (despite a distribution deal last year with Target).
Going green to get that green… Tupperware lost out as younger shoppers passed on plastic resealable tubs in favor of more sustainable glass or metal options. FYI: 84% of surveyed US shoppers said they're concerned about plastic waste, and more than 60% said they'd pay more for sustainably packaged products. Last year, Tupperware's CEO said the plastic powerhouse would expand its offerings to include more glass and stainless steel. Tupperware's pitch as the OG reusable product wasn't enough to shift consumer shopping sentiment.
Genericized products have generic competition… Tupperware's a name brand, but lots of shoppers equate its products with any resealable food container. It's a common problem for brands that've become so ubiquitous they define an entire category (like: Kleenex, Q-tips, and Ziploc). While consumers might splurge extra on brand-name Coke or Nikes rather than knockoffs, items like food containers and cotton swabs are seen by many as interchangeable. And if generic options are cheaper or more sustainable, they have a leg up.