Professional Documents
Culture Documents
2017 2016
Personal
$4,050* $4,050*
Exemption
Standard
deduction
$6,350 $6,300
Single, or Married
Filing Separate
Standard
deduction Head $9,350 $9,300
of Household
Standard
deduction $12,700 $12,600
Married Filing
Joint
Earned Income
Credit Maximum $6,318 $6,269
Amount
*Subject to phase out for Adjusted
Gross Income starting at $261,500
($314,000 for Married Filing Jointly)
Personal Taxes
Health Insurance
For 2017, the amount used to calculate the
penalty for not maintaining minimum
essential health coverage is $695 or 2.5% of
household income, whichever is higher.
There are no changes to Marketplace
Insurance. Remember, if you are a small
business owner, you may be able to deduct
your health insurance and long-term care
premiums as an above the line deduction
on your personal return, if you meet some
conditions. This means that you are not
limited by the 10% of AGI threshold for
medical expenses. If you provide health
insurance to employees, there is also a tax
credit that you may be eligible for.
Retirement Contributions
TYPE 2017
Traditional*
IRA or Roth** $5,500
IRA
An
over 50
additional
catch up
$1,000
*May be tax deductible
**Not tax deductible, and
subject to income limits
Business-Related Expenses
Tax Advice
OVERVIEW
Various tax changes inevitably occur from year
to year. These can range from minor
adjustments to the complete elimination of
various tax provisions. The Internal Revenue
Service has released information on a number
of tax changes for the 2017 tax year.
While much is written about the length and
complexity of the U.S. Tax Code, the fact is that
much of it doesn't apply to the average
taxpayer. In reality, taxes can be relatively
straightforward for many individuals.
However, you should be on the lookout for the
various tax changes that inevitably occur from
year to year. These can range from minor
adjustments to the complete elimination of
various tax provisions. The Internal Revenue
Service has released information on a number
of tax changes for the 2017 tax year. (Dont
worry. When you use TurboTax, youll always
be up-to-date with the latest tax laws.)
Inflation adjustments
OVERVIEW
Here are some recent changes in the tax law
with an explanation of how much they can save
you money.
In recent years Congress made a number of
adjustments to the tax code, most of them
designed to reduce Americans tax bills. When
reviewing your taxes, be sure to take these
changes into account:
1. The American Opportunity Tax Credit
Impact: Taxpayers with education expenses
This tax break expands the Hope credit, which
goes to people who pay college-related costs
for themselves, a spouse or a child, or another
dependent. You can receive a credit for up to
$2,500 in tuition and related expenses, such as
course materials, depending on your income
and filing status.
Heres how it works: You get a credit for 100%
of the first $2,000 you spend on post-secondary
education. After that, you can claim a credit of
25% of the next $2,000. The American
Opportunity Credit is partially refundable, so if
the credit reduces the taxes you owe below
zero, you can receive up to $1,000 in the form
of a refund.
This once temporary credit has now been made
permanent.
2. Alternative minimum tax (AMT) changes
Impact: Some middle-to high-income taxpayers
In early 2013, Congress made the AMT patch
permanent to prevent millions of taxpayers from
having to pay AMT in 2013 and beyond. The
exemptions for 2017 are:
$54,300 for single and head of
household filers
$84,500 for married couples filing jointly and
qualifying widow(er)s
$42,250 for married people filing separately
These amounts are indexed for inflation for
future tax years.
3. Energy-efficiency credits
Impact: Taxpayers who installed alternative
energy equipment
If you installed alternative energy equipment
including hot water heaters, solar electric
equipment and wind turbines in your home, you
may be able to claim a credit worth 30% of the
expense. The credit is not refundable but any
excess can be carried forward to future tax
years.
Espaol
Three Extra Days to File and Pay
Taxpayers will have until Tuesday, April
18, 2017 to file their 2016 returns and pay
any taxes due. Thats because of the
combined impact of the weekend and a
holiday in the District of Columbia. The
customary April 15 deadline falls on
Saturday this year, which would normally
give taxpayers until at least the following
Monday. But Emancipation Day, a D.C.
holiday, is observed on Monday, April 17
giving taxpayers nationwide an additional
day. By law, D.C. holidays impact tax
deadlines for everyone in the same way
federal holidays do. Taxpayers requesting
an extension will have until Monday, Oct.
16, 2017 to file.
Refunds Delayed for Some Taxpayers
A law change that went into effect this
year requires the IRS to hold refunds on
tax returns claiming the Earned Income
Tax Credit (EITC) or Additional Child Tax
Credit (ACTC) until at least Feb. 15. Still,
even with this change, the fastest way to
get a refund is to file electronically and
choose direct deposit. Even though the
IRS will begin releasing EITC and ACTC
refunds on Feb. 15, many early filers will
still not have actual access to their
refunds until at least the week of Feb. 27.
The additional delay is due to several
factors including the time needed by
banks to process direct deposits.
Under this change, required by the
Protecting Americans from Tax Hikes
(PATH) Act, the IRS must hold the entire
refund even the portion not associated
with the EITC and ACTC. This change
helps ensure that taxpayers get the
refund they are owed by giving the IRS
more time to help detect and prevent
fraud. Taxpayers should file as usual, and
tax return preparers should submit returns
as they normally do. Beginning a few
days after Feb. 15, affected taxpayers can
check the status of their refund by visiting
IRS.gov/Refunds and clicking on Where's
My Refund? Or using the IRS2Go mobile
app.
Renew ITIN Soon to Avoid Refund
Delays
Many Individual Taxpayer Identification
Numbers (ITINs) expired on Jan. 1, and
affected taxpayers should act soon to
avoid refund delays and possible loss of
eligibility for some key tax benefits until
the ITIN is renewed. An ITIN is used by
anyone who has tax-filing or payment
obligations under U.S. law but is not
eligible for a Social Security number.
Under a PATH Act change, any ITIN not
used on a tax return at least once in the
past three years has expired. Also now
expired is any ITIN with middle digits of
either 78 or 79 (9NN-78-NNNN or 9NN-
79-NNNN).
It can take up to 11 weeks to process a
complete and accurate ITIN renewal
application. For that reason, the IRS
urges anyone with an expired ITIN
needing to file a return this tax season to
submit their ITIN renewal application
soon. ITIN renewal applicants can get
help by visiting IRS.gov/ITIN, consulting a
Certified Acceptance Agent or
Acceptance Agent or making an
appointment at an IRS Taxpayer
Assistance Center (TAC).
Olympic Medals and Prize Money Now
Tax-Free for Most Olympians
Starting in 2016, most Olympic and
Paralympic winners qualify for a new tax
benefit. To qualify, the taxpayers
adjusted gross income (AGI) must be $1
million or less ($500,000 or less, if
married filing separately. For these
taxpayers, the value of Olympic and
Paralympic medals and the amount of
United States Olympic Committee
(USOC) prize money is not taxable.
These amounts are shown in Box 3 on
Form 1099-MISC. See the Form 1040
instructions for Lines 21 and 36 for details
on how to report.
ABLE Accounts Now Available for
Some People with Disabilities
States are now offering specially
designed, tax-favored ABLE accounts to
people with disabilities who became
disabled before age 26. Originally
authorized in legislation enacted in late
2014, these special accounts first became
widely available during 2016. Recognizing
the special financial burdens faced by
families raising children with disabilities,
ABLE accounts are designed to enable
people with disabilities and their families
to save for and pay for disability-related
expenses.
Contributions totaling up to the annual gift
tax exclusion amount -- $14,000, in both
2016 and 2017 -- can generally be made
to an ABLE account each year. Though
contributions are not deductible,
distributions are tax-free if used to pay
qualified disability expenses. See the Tax
Benefit for Disability page for more
information.
Standard Mileage Rates Revised
The standard mileage rates for the use of
a car, van, pickup or panel truck are:
54 cents per mile for business miles
driven in 2016, down from 57.5 cents
in 2015. For those planning ahead, the
2017 rate, for use on a 2017 return
filed next year, is 53.5 cents per mile.
19 cents per mile driven for medical or
moving purposes in 2016, down from
23 cents in 2015. The 2017 rate is 17
cents.
14 cents per mile driven in service of
charitable organizations. This rate is
set by law and is unchanged.
The tax instructions have details on taking
advantage of each of these provisions.
New Self-Certification Available for
Missed Rollover Deadline
Inflation-Related Adjustments
undefined
The tuition and fees deduction is another
that expired at the end of 2016, and this
was a particularly nice one. You didnt
have to itemize to claim it it came off
your taxable income as an adjustment to
income above the line on the first page of
your 1040 tax return. You could take
it and take the standard deduction or
itemize other deductions. It helped to
determine your AGI, which several tax
break phase-outs are subject to.
Unfortunately, its been eliminated
beginning in 2017. You can no longer take
a deduction for tuition or qualified fees you
pay on behalf of yourself or your
dependents. The American Opportunity
Tax Credit and the Lifetime Learning Tax
Credit are still available but are subject to
phase-out limits and some other restrictions
that prevent all taxpayers from claiming
them. Everyone could claim the tuition and
fees deduction, however, even if they didnt
qualify for the credits but not anymore.
6
Confidence
Type Public
Founded 1946
Website www.tupperwarebrands.com
Contents
[hide]
1History
2Brands
3See also
4References
5External links
History[edit]
Tupperware Brands Corporation was founded as The Tupperware Company in 1946 in South
Grafton, Massachusettsby Earl Tupper. In 1958, Tupper sold The Tupperware Company for $16
million to Rexall and the company's headquarters were moved to Orlando, Florida. In December
2005, Tupperware Corporation changed its name to Tupperware Brands Corporation to reflect the
company's increasing product diversity.[citation needed]
Since 1997, Tupperware has been directed by Rick Goings.[3]
Brands[edit]
A decade after starting business in the United States, Tupperware expanded into Europe. By 1965,
the company had a presence in six European countries and then launched in Singapore, Japan and
Australia. Tupperware also had sales offices in Africa and Latin America before 1970. After that,
Tupperware Brands expanded to almost 100 countries around the world under seven brands
connected to it: the brands Tupperware, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics
and Nuvo.[4] In 2008, due to its success in developing the brand's name in China, India and
Indonesia, Tupperware received awards for "Most Favored Brand by Women" and "Company with
the Best Corporate Face."[5]
See also[edit]
Earl Tupper
Brownie Wise
Rick Goings
References[edit]
Company Perspectives
Tupperware is one of the most trusted names in
housewares. We offer the highest quality products, with
the finest design features to meet your special needs.
Whether it's getting a good, hot meal on the table at the
end of a busy day, toting a nutritious lunch to work, or
taking time to learn a new baking secret with your
children--Tupperware makes it all possible.
History of Tupperware Brands Corporation
Tupperware Brands Corporation, whose well-known
Tupperware parties have spread to more than 100
countries, is one of the largest direct sellers in the
world. Relying on independent consultants rather than
employees for sales in most markets, the company
generates more than $1 billion in revenues a year.
Although plastic food storage containers have been
Tupperware's mainstay for decades, in the 1990s the
company expanded into kitchen tools, small
appliances, and baby and toddler products. In 2000,
beauty products became a new avenue for growth.
Though Tupperware is known as an icon of postwar
American life, U.S. sales declined steadily in the 1980s
and 1990s at the same time international sales
expanded, with the result that more than 85 percent of
company revenues were coming from international
business by the mid-1990s. Headquartered in Florida,
the company has just one domestic manufacturing
facility, in Hemingway, South Carolina. The company
identifies itself with its direct marketing channel. Its
sales force, after the acquisition of Sara Lee's direct-
sales cosmetics business in 2005, numbered about two
million independent representatives worldwide.
Company Origins
Company founder Earl Tupper was an early plastics
pioneer and ambitious entrepreneur. An early tree
surgery venture failed in 1936. The self-educated
young inventor then found work at Doyle Works, a
subcontractor for DuPont Co. By 1938 Tupper was
ready to strike out on his own and devote himself to
research in plastics. That year he started his own
company, Earl S. Tupper Co., leaving DuPont with only
his experience and a discarded piece of polyethylene,
remains from the oil refining process that no one had
yet manipulated into a practical form. Tupper's fledgling
company kept afloat by making plastic parts for gas
masks in World War II, although Tupper continued to
pursue his research with polyethylene. Tupper modified
his own refining process, searching for more useful and
appealing forms of plastic.
By 1942 Tupper had developed a plastic that was both
durable and safe for food storage. The lightweight,
flexible, and unbreakable material was also clear,
odorless, and nontoxic. Tupper dubbed the new
material Poly-T, and he further refined the product over
the next few years. In 1946 he founded a new
company, Tupperware, and began manufacturing food
storage and serving containers with Poly-T. The
containers were enhanced the following year with the
unique Tupperware seal, an innovation that consumers
would find useful well into the future. Tupper had gotten
the idea for the airtight seal from a paint can lid.
Although Tupper quickly found department and
hardware stores to carry his product, customers were
harder to come by. Consumers were unfamiliar with the
benefits of the new material and did not know how to
operate the seal. Sales finally took off in the late 1940s
when a few direct sellers of Stanley Home Products
added Tupperware to their demonstrations. The
products flourished with the direct selling approach
because salespeople could explain the benefits of the
plastic and personally demonstrate the seal to
consumers. In addition, Stanley Home Products
salespeople did not sell door to door, but rather sold
their products at home parties. This method was
particularly suited to Tupperware sales
because homemakers felt they were getting advice
from other homemakers who actually used the
products.
Expansion: 1950-70
The most successful early direct seller of Tupperware
was Brownie Wise, a Detroit secretary and single
mother. Tupper hired her in 1951 to create a direct
selling system for his company. Within a few months
Tupper had established the subsidiary Tupperware
Home Parties, Inc. and had abandoned selling his
products through retail stores. Wise's home party
system used a sales force of independent consultants
who earned a flat percentage of the goods they sold
and won incentives in the form of bonuses and
products. Wise, together with Gary McDonald, another
Stanley veteran, created the Tupperware Jubilee, an
annual sales convention that became famous and
provided a format for the conventions of numerous
direct-selling companies.
Sales skyrocketed, multiplying 25 times within three
years. By the late 1950s Tupperware had become a
household name. With almost no advertising,
Tupperware had created phenomenal brand
awareness. The company's rapid success can be
attributed to its recruitment of almost 9,000
independent consultants by 1954, most of them
women, and their enthusiastic spread of Tupperware
parties.
Tupperware home parties provided an easy entree into
the workforce for women. Able to schedule the parties
around their home and family responsibilities, women
could earn extra cash and get together with friends and
neighbors at the same time. In addition, the home party
plan provided a milieu in which women were trusted as
salespeople, unlike door-to-door sales, where women
were not accepted at the time.
In 1958 Wise resigned from her vice-president position
and Tupper sold the company to Rexall Drug. Despite
the change in management the company continued to
thrive. Throughout the 1960s and 1970s sales and
earnings doubled every five years. The company had
grown not only in the United States but also had
entered and thrived in several foreign countries.
Tupperware's first venture outside the United States
was to Canada in 1958. Tupperware parties were soon
being thrown in Latin America, Western Europe, and
Japan. International sales became a significant source
of revenue for Tupperware in the 1970s, and Rexall
Drug, which had become Dart Industries, had changed
the subsidiary's name to Tupperware International.
Slipping Sales in 1983
Sales exceeded the half billion dollar mark in 1976.
Four years later Dart Industries and Kraft Inc. merged,
and the newly formed company looked to subsidiary
Tupperware International to fuel its growth.
Tupperware's growth slowed in the early 1980s,
however, and by 1983 the subsidiary had cut 7 percent
from its sales and lost 15 percent from its earnings.
Several factors contributed to the slip in sales and
earnings. Competition had increased from Rubbermaid
Inc., Eagle Affiliates, and other retail companies. In
addition, an economic recovery had allowed many part-
time sales people to find full-time work elsewhere, and
the movement of women into the workforce had dried
up the company's source for part-time labor and limited
the time many women had to attend parties. The
company exacerbated the labor problem, however, by
not enticing people with higher commissions and by
lowering the quality of their bonus prizes.
Sales continued to fall, slipping 6 percent in 1984, from
$827 million to $777 million. Even worse, earnings
plummeted 27 percent, to $139 million. The following
year was no better; sales dropped to $762 million and
earnings declined to a mere $96 million. Tupperware
finally took action, bringing in a new management team
in 1985. K. Douglas Martin took over as president of
Tupperware USA, and Dart and Kraft moved William L.
Jackson from the company's Duracell battery division
to the chairmanship of Tupperware. Having made
significant improvements in the Duracell division,
Jackson was expected to help turn Tupperware around.
Jackson immediately made several changes. To bolster
slipping party attendance, he loosened the rules
governing parties and allowed adaptations to the
parties that would appeal to working women, such as
shorter parties and parties thrown at the workplace. In
addition, Jackson worked to improve Tupperware's
training of its salespeople and eliminated any bonuses
and sales incentives that appeared ineffective. Over the
next couple of years Jackson instituted further
changes. The company introduced its first catalog,
which was sent out only in response to requests made
to its toll-free number. In addition, national print and
television advertising was stepped up to help
counteract competition from Rubbermaid and other
retail product lines. To improve the company's delivery
speed, Tupperware built several new warehouses and
a large distribution center.
New products in the mid-1980s helped boost both sales
and company morale. In 1985 Tupperware introduced
Ultra 21, a line of cookware to which market research
had shown consumers would respond favorably. The
company's new microwave cookware did very well and
by 1987 had shown significant growth. Other products,
including the company's traditional storage containers,
struggled merely to maintain their sales figures.
Uneven Recovery in 1986
In 1986 Dart and Kraft reversed their ill-fated merger.
Dart renamed itself Premark International Inc., and
former Kraft president Warren Batts took over as chair
and chief executive officer. Tupperware apparently
responded well to the change. Although the subsidiary
posted a $58 million loss in 1986, its profits rose 48
percent in 1987.
Progress at Tupperware was uneven over the next
several years. Sales in the United States continued to
decline, although international business grew steadily.
As a result, the proportion of U.S. to international sales
gradually shifted until international sales accounted for
more than half the company's revenues in 1992. That
year, Tupperware's operations in the United States
reported a loss of $22 million. In another management
shift, Rick Goings, executive at direct sales leader
Avon, took over as president of Tupperware in 1992.
In an effort to halt the decline in U.S. earnings,
Tupperware cut costs and stepped up its sales force
recruiting efforts. In addition, the company moved into
direct mail, for the first time sending out unsolicited
catalogs in 1992. Sales representatives provided
names and addresses and paid Tupperware 65 cents
for each catalog sent to one of their customers. Catalog
customers then bought directly from their sales
representatives. The company saw the catalog as yet
another way to entice busy working women back into
the Tupperware fold.
In 1993 the company was again enjoying profits in the
United States, with earnings that year at $12.5 million.
Sales also continued to grow internationally, helping
improve the company's image on Wall Street. Shares
of Premark International rose from $48 at the beginning
of 1993 to $88 at the end of the year, due in large part
to Tupperware's recovery.
Overall sales continued to improve in the mid-1990s, in
part fueled by massive product introductions.
Tupperware brought out approximately 100 new
products between 1994 and 1996, including entire new
product lines and specialty items catering to particular
needs internationally, such as Kimono Keepers in
Japan. As had been the case for the 1980s,
international sales growth outstripped that in the United
States. Sales in the Far East and Latin America
boomed, while sales in the United States improved
slowly. As a result, by 1996, Tupperware relied on
international business for 85 percent of its revenues
and 95 percent of its profits.
Independence in 1996
Tupperware's finances continued to improve. By 1996
sales had reached 1.4 billion with earnings of $235
million. Premark International's food equipment and
decorative product businesses were not faring quite as
well: $2.2 billion in sales resulted in $168 million in
earnings. Premark shares were trading well below
competitors as a result, and management felt
Tupperware was being held back by the company's
other businesses. Consequently, in May 1996, Premark
International spun off Tupperware, making it an
independent public company. Premark shareholders
received one share of Tupperware stock for each
Premark share they held.
Wall Street responded positively to the spinoff;
Tupperware shares began trading at $42 and soon
rose to $55. Certain analysts sang the company's
praises, including David Boczar, who told Financial
World, "There is a perception of higher quality with
Tupperware as well as the multifunctionality of the
products, and also the nature of the distribution." He
felt that the long-term prospects for the newly
independent company were good.
The steady improvement in sales and earnings in the
mid-1990s faltered in 1997. Revenues declined from a
high of $1.37 billion in 1996 to $1.23 billion in 1997.
Earnings plummeted 53 percent, from $175 million in
1996 to $82 million in 1997. Several factors had
contributed to the decline. Domestically, a change in
the company's sales plan led to a loss in its vital sales
force. Quite a few sales representatives left
Tupperware when the company raised the level of
sales needed to qualify for a company minivan.
Tupperware later renewed its recruiting efforts by
offering subcompact company cars to sales
representatives.
Internationally, the Asian economic crisis significantly
affected Tupperware's performance, which relied on
Japan alone for 12 percent of its sales in 1996. In
addition, a third party vendor delayed Tupperware's
delivery of products to its Japanese sales
representatives, causing a major customer service
problem. Although sales in the Far East continued to
decline as the economic crisis there deepened,
Tupperware hoped its expansion into India, Russia,
and China in 1997 would offset the loss in sales.
In 1997 Tupperware experienced further discord with
some of its U.S. consultants when it began enforcing a
company policy prohibiting the sale of Tupperware
online. The company's crackdown included cutting off
from their distributors consultants who refused to shut
down their web sites. Consultants with web sites
resented the intrusion into how they ran their
businesses, for as independent franchise owners,
Tupperware consultants are not employees. By early
1998, however, only six web sites remained in
operation from a high of almost 100 in 1996. Lawrie
Hall, director of external affairs at Tupperware,
explained the policy to Fortune: "We believe that the
product-demonstration and customer services that our
consultants offer face to face can't be adequately
provided in an Internet environment." The following
year, in a complete about-face from that position,
Tupperware announced plans to sell merchandise over
its own corporate web site.
Sales and earnings fell further in 1998. Revenues
declined to $1.1 billion, a 21 percent decline since the
company was divested from Premark two years earlier.
Net income fell to $69 million, the company's lowest
profits since its loss in 1992. Further erosion of the
company's independent sales force in the United
States was responsible in part for the decline in
domestic sales. Internationally, slipping sales in Latin
America and Japan posed the greatest threat to overall
growth.
In the late 1990s Tupperware pursued several
strategies to combat persistent declines in sales in the
United States. Diversifying its distribution channels was
one strategy. Tupperware had plans for selling over the
Internet, through television infomercials, and at
shopping mall kiosks. Diversifying its product line was
another. Throughout the middle to late 1990s,
Tupperware had been expanding into new product
areas, including kitchen tools, small kitchen appliances,
and children's products. Tupperware introduced a new
sales technique in April 1998 with the "Demo in a Box."
Consultants could purchase these boxes that come
completely outfitted with recipes, apron, invitation
inserts, video and audio training tapes, etc.
Internationally, Tupperware continued to move into new
geographic areas and to expand its independent sales
force.
Although some analysts saw hope in the company's
move into more traditional retail venues, overall
confidence on Wall Street was low, as evidenced by
the 63 percent decline in the company's stock price
between 1997 and 1999. However, new products were
being introduced each month along with hostess
incentives to keep interest high for customers to host
and attend frequent parties, and customer loyalty
remained strong.
New Products for the New Millennium
Tupperware entered a new market in late 2000 with the
purchase of BeautiControl Inc., a Dallas-based direct-
sales marketer of cosmetics and nutritional products.
The price was about $60 million. With fewer women
staying home to raise families, domestic arts were less
in vogue; however there was strong interest in beauty
products through the direct sales channel.
In 2002, Tupperware tried mass retail distribution for
well-known brand via Target department stores (and, to
a lesser extent, Kroger grocery stores). However, this
was cancelled after eight months because the success
of the venture cut into home-based sales.
Tupperware was facing competition from the top and
bottom ends of its traditional market. Cheap,
disposable plastic containers from GladWare
and Ziploc were available at supermarkets, where they
were likely more of a challenge for down-market rival
Rubbermaid Newell Inc. Company insiders derided
Rubbermaid products as being for garbage more than
for food, and perceived their true competition to be
more from the likes of upscale retailer Williams-
Sonoma. However, another direct sales force was
storming through affluent U.S. suburbs: that of The
Pampered Chef, Ltd., which focused on kitchen
utensils and cookware.
By this time, only a fifth of Tupperware's sales were
coming from North America. Half of overall revenues
($1.3 billion in 2004) were coming from Europe. The
company was looking for growth in Latin America,
particularly in cosmetics.
There were layoffs in 2003 and 2005. Tupperware's
only U.S. facility was a plant in Hemingway, South
Carolina, which also served as a distribution center.
While the company had established a factory in Japan
to suit the local market, it shut down a product
development center there in 2003, leaving design
operations in Florida and Belgium. Tupperware
operated several other plants around the world,
including one in China, where products were distributed
entirely through small retail outlets until a ban on direct
sales was lifted. Tupperware was aiming to outsource
about half of its products.
In the United States, the Tupperware party was being
embraced by a new generation of time-strapped,
sophisticated females looking for fun social outings.
The New York Times described the ritual as a "book
club meeting without the book." In Manhattan, at least,
the guests were being plied with cocktails rather than
tea as the timing of the event was shifted from late
afternoon to evening.
Unfortunately, the original concept was running into
difficulties on the other side of the Atlantic. In 2003 the
company shut down its direct sales operations in Great
Britain, where it had had 1,700 consultants, while
keeping other distribution options open.
The product range had continued to evolve. Top new
products included breathable containers for storing
vegetables and accordion-like, collapsible containers.
Tupperware was also expanding its range of kitchen
items with products such as cookware and dishes.
Brand New Name in 2005
Reflecting its identity as a "multibrand, multicategory
direct-sales company," in December 2005 the company
was renamed Tupperware Brands Corporation. At the
same time, the beauty side of the business was
enhanced with the purchase of Sara Lee's direct-sale,
beauty supply line for around $560 million. After this
acquisition, beauty products, where were expected to
be a key source of future growth, accounted for more
than one-third of Tupperware's total sales. All of Sara
Lee's 900,000 cosmetics sales representatives at the
time were operating outside the United States.
Principal Divisions
Europe; Asia Pacific; Latin America; North America;
BeautiControl North America.
Principal Competitors
Avon Products Inc.; Mary Kay Inc.; Newell Rubbermaid
Inc.; The Pampered Chef, Ltd.; Williams-Sonoma, Inc.
Chronology
Key Dates
1942 Earl Tupper develops plastic material suitable
for food storage.
1946 Earl S. Tupper Company established.
1947 The lid of a paint can inspires design for the
airtight Tupperware seal; revenues reach $5
million.
1951 Tupperware drops retail sales altogether in
favor of home party approach.
1954 Brownie Wise, head of nearly 9,000
independent sales consultants, becomes first
female to make cover of Business Week.
1958 Rexall Drug buys company from Tupper.
1976 Sales exceed $500 million.
1996 Tupperware spun off from Premark
International (formerly Rexall and Dart
International).
2000 BeautiControl direct-selling cosmetics
business acquired.
2005 Company renamed Tupperware Brands
Corporation; acquires Sara Lee's beauty supply
business.
Additional Details
Public Company
Incorporated: 1946 as Earl S. Tupper Company
Employees: 5,900
Sales: $1.28 billion (2004)
Stock Exchanges: New York
Ticker Symbol: TUP
NAIC: 422130 Sanitary Food Containers
Wholesaling; 326199 Kitchen Utensils, Plastics,
Manufacturing
Further Reference
Company Background
This excerpt taken from the TUP DEF 14A filed Mar 30, 2007.
Company Background
The Company is more complicated than the average corporation. The sales force is largely
comprised of agents who are not employees and, therefore, must be motivated through compensation
models, recognition and other indirect mechanisms. Due in part to this difficulty of motivating the diverse
independent sales force members in many markets, as well as managing the various business models
throughout the world, the Company takes such matters into account when developing its executive
compensation practices.
The Company seeks to structure its operations in the most efficient manner, including minimizing the
impact of income taxes. As a result, it incurs more pretax costs than if its objective was solely to maximize
pretax income. Therefore, the Committee must include both consideration of pre-tax and after-tax income
in determining management performance. Certain of the named executive officers' (the "NEOs") incentive
compensation is based primarily upon the net (after-tax) income measure, while other of the NEOs'
compensation is based upon a combination of segment (pre-tax) profit and net income.
Although the Company seeks patent protection on many of its new Tupperware products, historically
other manufacturers have developed similar products and sold them through retail channels at
substantially lower prices. For that reason, the Company must continue to develop new products and
improvements of the existing line in order to keep the sales force energized. Although the Company sells
these
10
products in both developed and developing countries, the gross margin in developed countries is in some
cases higher, although this is normally partially offset by higher promotional costs.
The Company has experienced a difficult selling environment in its Tupperware Germany, Japan
and United States businesses and management has been attempting to re-energize its business model
for such businesses, as well as to reduce their overhead. The benefit from these efforts may not be
apparent in the consolidated results of the Company in the near term but are important for future growth.
In many areas of the world, women spend a higher proportion of their available resources on beauty
and personal care products than traditional Tupperware brand products. Also, beauty products are
consumable; and therefore there is a bigger opportunity for recurring business. The Company made a
strategic decision in 1999 to expand its direct selling operations through acquisitions to include beauty
products, which eventually led to two major transactions.
The first acquisition was the purchase of BeautiControl, Inc. in October, 2000. The second
acquisition was the purchase of the direct selling beauty operations of Sara Lee Corporation in
December 2005. The intangible assets acquired in this acquisition consisted primarily of the existing
independent sales force, which were valued at $62 million, and this value is being amortized over its
estimated life, resulting in $24.4 million of expense in 2006. The sales force in the acquired businesses
actually grew in 2006. This non-cash cost was not considered in setting the performance goals for the
Company and consequently was also not included in measuring achievement.
Performance metrics used in the Company's compensation program normally include profit growth,
sales growth, control of working capital and maximization of overall cash flow. These metrics often include
increasing payout percentages with increased sales, since there is normally a high level of profit
associated with incremental sales. After-tax income is normally more important than pre-tax income, but
the Committee also includes a judgment on investment to increase future growth.
Normally performance goals and their measurement are related to an executive's area of
responsibility. Goals for the NEOs are based in whole, or in part, upon consolidated results. Since the
Company has diverse operations, historically some areas of the world have out-performed in any given
year while other areas have under-performed, in which case there is no incentive compensation for
management responsible for those operations.
Growth of the Orlando, Florida metropolitan region has created increased value for some excess
land adjacent to the Company's headquarters. Valuation in the early 1990s indicated that the Company
could expect to achieve as little as $30 million in a tract sale of this acreage. The Company elected to
develop this property including streets and normal subdivision activities. Zoning was achieved for specific
parcels and sales to date have exceeded $58 million, with additional tracts to be developed and sold with
up to $70 million in incremental proceeds currently foreseen. This has been a key strategy, although the
income generated from this activity is not included in setting general incentive plan goals or in measuring
achievement against those goals, but only as a special incentive program for two of the NEOs, including
the Chairman & CEO. This special incentive program was terminated effective December 30, 2006.
Tupperware
From Wikipedia, the free encyclopedia
Type Subsidiary
Website tupperwarebrands.com
Tupperware is the name of a home products line that includes preparation, storage, containment,
and serving products for the kitchen and home. It also includes plastic containers used to store
goods and/or food. In 1942, Earl Tupperdeveloped his first bell shaped container; the brand products
were introduced to the public in 1948.
Tupperware develops, manufactures, and internationally distributes its products as a wholly
owned subsidiary of its parent company Tupperware Brands. It is marketed by means of
approximately 1.9 million direct salespeople on contract.[2]
In 2013, the top marketplace of Tupperware was Indonesia, which topped Germany as the second.
Indonesia's sales in 2013 were more than $200 million with 250,000 sales persons.[3]
Contents
[hide]
1Company history
2Tupperware parties
3Gender aspects and cultural impact
4Product lines
5See also
6References
7Further reading
8External links
Company history[edit]
Brand: Tupperware
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