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Tupperware Brands Corporation (TUP) – Incredibly Foolish !!!

Tupperware Brands Corporation (NYSE:TUP) is known across the world for its successful direct sales methodology and a unique strategy which is central to the participation of women as sales representatives giving them the opportunity to expand their wings beyond the perimeters of their home.

The company realized the potential of women as a major sales force and gave them an opportunity to run a business independently, marking the beginning of an extremely successful strategy ending the year 2012 with a sales force of over 2.8 million.

2012 marked an extremely successful year for the company on the back of strong growth in major emerging markets, especially in APAC and Latin American regions, growing at 11%, constituting 61% of the total revenues.

Source: CEO Letter 2012

Tupperware Brands Corporation (NYSE:TUP)’s internal assessment pegs a penetration of less than 25% in residences in India, Brazil and Indonesia creating massive opportunities of growth.

Another factor working in company’s favor is the incredible potential of tapping into the scores of women in these geographic areas who are left out of the mainstream owing to various reasons, and giving them a respectable and dignified way to earn money and support their families providing a boost their self-confidence.

It all boils down to the 4 key elements

Tupperware Brands Corporation (NYSE:TUP)’s success is a result of continued commitment to the 4 key elements they identify as the critical success drivers of their businesses.

Source: Company Website

Tupperware Brands Corporation (NYSE:TUP), realizing the importance of generating real return for the shareholders, has, in the last 3 years, generated a total return of 42% in the form of extensive buyback programs and continuous growth in dividends.

Furthermore, the company for the year 2013 has increased its share repurchase program by $800 million and increased the quarterly dividend by over 70% in a bid to continually add value to shareholders wealth.

Moving ahead on these solid fundamentals, the company looks set for a continued and sustained growth across business segments and geographies, and at the same time empowers women to add value to their lives and society at large.

Let’s see what the competitors are up to

The company’s prime competitors are Avon Products, Inc. (NYSE:AVP) and Newell Rubbermaid Inc. (NYSE:NWL).

Newell Rubbermaid Inc. (NYSE:NWL)’s diversified product portfolio ranging from home solutions and baby products to commercial products puts the company in a formidable position.

The company strives on its brands, which are clearly evidenced from the chart below, putting many of their brands in a commanding position in their home markets.

The company is taking strong and large strides in a bid to enhance itself as a major player in the global markets and move on the path of high growth.

As part of their global strategy the company has developed a fivefold model which it believes puts them in a commanding position to establish  itself in high growth emerging markets of Asia and Latin America.

Source: Company presentation

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