Tupperware shutting down in New Zealand: Mainstream media exhaust their annual allowance of witty headlines.
Bronwyn Rideout (September 5, 2022)
Skeptics, I'm mad.
I mean, look at these headlines
Stuff.co.nz: The Tupperware Party is over
NZ Herald: After half a century, Tupperware closes lid on NZ operation
But yes, it is true. Tupperware, the MLM that you likely gave a pass on because your mom or aunty was a fan or a consultant for them, is exiting the New Zealand market.
For now.
Tupperware is up there with AVON and Mary Kay as an MLM that you thought would never die but it was COVID that brought this behemoth down.
Sort of.
Tupperware New Zealand came on the scene 49 years ago with Tupperware Australia operating across the ditch over 60 years ago. There were grumblings of issues for other international branches almost a decade ago with the UK arm ditching the party plan system that Tupperware helped revolutionise.
In 2016 Tupperware was acclaimed, at least by Stuff, for leading the way with harnessing the power of social media to drive network marketing. This included taking the infamous Tupperware parties online with Facebook, ala the infamous LuLaRoe. That lead seems to have not lasted; selling plastic tubs doesn't court the same controversy as making health claims with essential oils.
On July 1st, 2020, Ross Dawson & Mia Gordon became the sole agency for Tupperware in NZ under the name “Ultimately Organised Ltd/Universal Origin Ltd” or UOL. However, COVID was a big obstacle and there were immediate difficulties with getting stock into the country. Whether they were ever able to pull that profit is unclear; as always, finding a financial report on an NZ-based MLM is wishful thinking. On AUgust 24th, 2022, headlines announced that the UOL importer would be shutting down the Tupperware side of their business by October 30th, leading to a surge in Trade Me searches.
In their official media statement, the duo attribute their decision to the stoppage of home-parties and continued reluctance to commence them again once lockdowns eased but the pandemic raged on. However, experts claim that even before the pandemic, the party model was struggling due to online shopping. In New Zealand the availability of homegrown products like Sistema, according to FIrst Retail Group Managing Director Chris Wilkinson, better met consumer preferences.
UOL did not speak to whether another importer was stepping in or whether another branch of Tupperware, like Australia, would pick up the NZ business. It is uncertain if the NZ business will ever pick up. As seen with other MLMs, the New Zealand market is a difficult one to sustain a recruitment-based business model in and its geographic location does no favours for it either in terms of shipping. It is possible that the shutdown of the NZ market is a portent for things to come for Tupperware internationally. The Corporation saw an 18% drop in sales in the second quarter of 2022 with a $65.2 million drop in net profits.In 2021, Tupperware divested itself of two businesses in its beauty and wellness portfolio, one in Mexico and another in South Africa. On July 5th, 2022, Tupperware sold the skincare and cosmetics brand Nutrimetics to the NZ company New Image Group, which also acquired Nutrimetics Australia, Nutrimetics Manufacturing, and Nutrimetics France in the sale. Time will tell is this is just a bump in the road for Tupperware a slow early to the end of your Grandma's MLM.