Once a pioneer in the kitchenware market, Tupperware's iconic status is now overshadowed by bankruptcy and layoffs, leaving questions about the future of the brand.
Image: Tupperware
Tupperware’s story, which began in the 1940s, has been marked by groundbreaking innovation,significant global expansion, and a revolutionary approach to sales. The company was a household name for decades, with its distinctive, airtight containers becoming synonymous with food storage.
But now, the brand finds itself in crisis, as it announces the closure of its South African operations by December 2024, following a bankruptcy filing due to years of declining sales.
The origins of Tupperware can be traced back to 1942 when American chemist Earl Tupper invented the first Tupperware container. Made from polyethylene resin, the container was designed to preserve food by creating an airtight seal. Initially, Tupper’s invention struggled to gain traction in stores, but everything changed when saleswoman Brownie Wise revolutionised the way the product was marketed.
In 1951, Wise introduced the concept of "Tupperware Parties" - informal gatherings where women could learn about the products, see demonstrations, and purchase items. This direct-sales approach became the backbone of Tupperware’s success, allowing the brand to connect with consumers in a way that no other company had before.
The idea was so effective that it propelled the company into a period of exponential growth. By 1953, Tupperware was holding national sales conferences, and Wise’s sales strategy was fully integrated into the company's business model.
Wise’s innovative approach allowed Tupperware to expand rapidly, both domestically and internationally. By 1958, Tupperware had become a global brand, selling products in Canada and other international markets.
As the 1960s and 1970s unfolded, Tupperware expanded aggressively. The company’s iconic containers became available in countries across Europe, South America, and Asia, cementing Tupperware’s place as a household name worldwide.
At the same time, the company’s direct-sales model continued to thrive, empowering women to become independent entrepreneurs, selling Tupperware products from home and giving them the potential to build their own businesses.
The 1970s also saw the company expand into the children’s market with the introduction of Tupperware Junior, a line of products designed specifically for children. This innovation marked the brand’s ability to adapt to changing consumer needs.
The company’s success peaked during the 1990s, when it began to further globalise its operations. Tupperware entered emerging markets in Eastern Europe and Asia and was well-positioned to capitalise on the growing demand for practical and durable kitchen products.
As the world turned to more eco-friendly solutions, Tupperware adapted its product offerings in the 2000s, introducing a line of sustainable and environmentally-friendly products. The company made a concerted effort to reduce plastic waste and promoted its efforts through a public Sustainability Program launched in 2021.
However, as the 2010s and 2020s progressed, the company began facing new challenges. The shift to digital shopping, changing consumer preferences, and competition from more agile brands caused Tupperware’s once-dominant position to erode.
Despite these obstacles, the company attempted to pivot by leveraging e-commerce platforms and social media campaigns. The global Covid-19 pandemic further challenged Tupperware’s sales model, as its in-person party structure was abruptly interrupted.
Despite efforts to adapt, Tupperware’s financial situation worsened in recent years. In 2023,Tupperware celebrated its 75th anniversary but continued to grapple with declining sales and an increasing inability to meet market demands.
In September 2024, Tupperware filed for bankruptcy due to a culmination of factors, including its inability to compete effectively in a changing market and the decline in consumer interest. The company announced that it would be selling certain assets to Party Products, a company formed by its lenders to help facilitate its restructuring.
However, it was also revealed that Tupperware’s South African operations would not be included in the asset sale, leading to the closure of its facilities in the region by December 2024.
Justin Korte, the head of commercial at Tupperware, confirmed that Tupperware South Africa would not receive the equipment necessary to continue production, which left the company with a severely limited stock of products.
In light of this, the company issued Voluntary Severance Packages (VSPs) to its employees,with the last working day set for December 31. Those who did not accept the VSP would face layoffs in early 2025.
The decision to close Tupperware South Africa marks the end of an era for the brand in the country. South Africa has been one of the markets where Tupperware built a strong presence through its direct-sales model.
For many years, Tupperware was a symbol of reliability and innovation in kitchens across the country. The closure will not only affect local employees but also disrupt the livelihoods of many independent distributors who have relied on Tupperware as a primary source of income.
IOL