Established Tupperware sellers in Quebec are not afraid of their banner going bankrupt. On the contrary, their business has never been so successful.
• Also read: Tupperware on the verge of bankruptcy?
“A company like Tupperware cannot go bankrupt. It’s iconic, it’s been around for over 76 years. If they can’t refinance, I don’t worry, I know it’s a company that’s being bought,” says Sylvain Lalonde, elite director at Tupperware in Quebec.
Tupperware Brands’ action fell 42% on Wednesday after the release of its financial results for the third quarter. In a press release, the company announced a 20% drop in sales compared to the previous year. His debts total over $700 million.
The maker said it may not be able to meet the covenants of its loan agreement, which “raises significant doubts about the company’s ability to continue as a going concern”.
The difficulties associated with COVID and the impossibility of hosting the usual “Tupperware parties” at home had already shaken the American company’s mythical business model. Add to that inflation, which has increased Tupperware prices by 10%, and environmental concerns.
Quebec on the rise
In Quebec, the situation is very different. Mr. Lalonde’s sales team of 6,400 consultants has seen sales grow from $2.5 million in 2019 to more than $7 million in 2021. And the growth continues.
“In Quebec we are growing (…), supports the director. Unfortunately COVID has been amazing for our business because people have started cooking at home, have more time and go to the grocery store less often. It also allowed many mothers to join the company to sell around them.
Les Diamants sales group, led by Quebec major Maria Meriano, has tripled sales since 2019 to more than $50 million. Spokesman for Tupperware’s parent company confirms increased domestic involvement.
New model online
The recipe for success in Quebec? Being able to turn the ship on board supports the entrepreneur. Leave the face-to-face meeting-at-home model behind. Trading is now done online like an influencer.
Advisors promote their “Tupperware lifestyle” in their community through cooking or freezing events, always online.
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Mr. Lalonde believes the Quebec organization could be more agile than elsewhere. The Les Diamants team would have been recognized as the most successful at Tupperware in the world in 2021.
Tupperware on the verge of bankruptcy?
Could this be the beginning of the end for the infamous Tupperware dishes and salon meetings that made it famous?
If you believe the plastic container giant’s latest financial figures published on Wednesday, nothing is going smoothly.
Tupperware Brands shares fell 42% on Wednesday after the release of third-quarter financial results, which showed the company’s debt has risen sharply relative to its earnings.
Tupperware Brands has $103 million at its disposal while its debt exceeds $700 million.
The manufacturer said it may not be able to honor commitments in its loan agreement, which “raises significant doubts about the company’s ability to continue as a going concern,” Tupperware said in a statement of its financial results.
Net sales were $302.8 million, down 20% year-on-year from $376.9 million for the same period last year.
Gross profit was $196.6 million, or 64.9% of net sales, compared to $247.9 million, or 65.8% of net sales, in the prior-year period.
Founded in 1946, Tupperware sells its products in nearly 70 countries primarily through independent agents worldwide.
– In cooperation with the agency QMI
Who is Tupperware?
- The company was founded in 1946 by American chemical engineer Earl Sila Tupper, who invented the first Tupperware bowls.
- The brand’s sophisticated sales method in the form of “Tupperware home parties” has made a significant contribution to its success.
- The brand is present in almost 100 countries around the world.
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