Tupperware’s future may be less colorful than the plastic containers it has been making for 77 years. The company’s shares began the week to decline by about 50% on the stock exchange, days after the US regulator reported that there were “great doubts about the company’s ability to continue its activity.”
Shares of Tupperware were valued at just $1.32, much less than the $38.57 recorded in 2021, when demand for the brand’s products soared during the pandemic, largely due to the greater number of people cooking at home. In 2022, inflation and the normalization of consumers’ daily lives cause sales volume to decline again, according to WatchmanThe company’s shares have fallen 95% in the past 12 months.
The brand continues to suffer from high interest rates, as well as resin and labor costs, and problems in distribution chains, forcing the brand to raise the prices of its products to maintain profit margins, which has hampered the recovery of consumer demand for colored boxes.
Tupperware CEO Miguel Fernandez said in a statement that the company is making efforts to “reverse” the situation. “The company is doing all it can to mitigate the impact of recent events and we are working immediately to obtain additional funding and improve our financial situation,” he said.
The company’s economic recovery strategy may include job cuts and the sale of some of its assets. Citing CNN, Neil Saunders of consulting and market analysis firm GlobalData points out that some of Tupperware’s difficulties also relate to a decline in the number of sellers and a lack of connection between the brand and young consumers. a Watchman He points to TikTok and Instagram as platforms where there is no brand expression, compared to other manufacturers of similar products that have managed to find new consumers.
The New York Stock Exchange has already threatened to remove Tupperware shares from its indexes and has given the company 30 days to provide more information about its accounts. The company has indicated its intention to file an annual report on the accounts soon, but admits there is “no certainty” about its ability to meet the deadline.
Tupperware was founded in 1946 by Earl Tupper and gained a reputation for the way it sold its products door-to-door. Currently, the brand’s products are sold in about 70 countries, including Portugal, where it has invaded many kitchens for decades.
Recently, the brand has tried to combat the image attached to its products, which are seen above all as containers for storing leftovers, and has tried to position itself as a more sophisticated brand. In 2019, for example, it offered a deluxe set containing a vase for €36, an apple guard for €13 and Reusable straws From 23 euros. However, the latest financial results show that the company has not been able to renew its image or win over new consumers.
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