Tupperware Brands (NYSE: TUP) is a global direct seller of premium food storage, preparation, serving and other consumer items in over 100 countries. The business is separated between Tupperware products and beauty products, sold under the BeautiControl brand, and the company's target markets are North America, Latin America and Asia Pacific. The company's dependence on international sales has boosted its financial performance over the past fiscal year due to a weakened dollar, but increased consumer consciousness may adversely affect the company's financial performance.
While TUP is best known for in-home sales parties, additional sales channels include mall kiosks, corporate and sales force web sites, and television shopping. TUP saw strong financial performance over the last fiscal year due to its increased presence on the internet market.
With over 80% of the company’s sales coming from international markets, Tupperware has seen a tremendous benefit pussyfrom the weaker U.S. Dollar (USD) and should be well insulated from a U.S. economic slowdown. It could even be modestly counter-cyclical should a slowing job market increase the pool of salespeople.
As consumers are becoming more health-conscious, certain chemicals used within Tupperware and beauty products such as the chemical Bisphenol A may cause concerns. There is the risk of regulation for chemicals that leak out of plastic containers or harmful ingredients used in cosmetics, personal care, and nutritional products. Although TUP has a company policy to use only materials that are approved by relevant regulatory authorities for contact with food or skin or for ingestion by consumers, increased health consciousness may adversely affect the demand for TUP's products.
TUP competes with companies that specialize in kitchenware products as well as companies that manufacture beauty products.