Latest / Bloomberg Intelligence / Tupperware's Goings: 92% of Business Is Outside the U.S.(Audio)

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Tupperware's Goings: 92% of Business Is Outside the U.S.(Audio) · Bloomberg Intelligence

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  Speaker 1: news desk don Bill Maloney show, right, Thank you very much,
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  Speaker 1: Bill Maloney, and do your live breaking news over your
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  Speaker 1: I'm Charlie Pellic, and that's so Bloomberg Business Flash. You're
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  Speaker 1: listening to taking stock with bim Box and Kathleen Hayes
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  Speaker 1: on Bloomberg Radio. Shares of Tupperware they are up more
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  Speaker 1: than eight percent today after reporting quarterly results. And here
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  Speaker 1: to tell us more is Rick Goings. He is the
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  Speaker 1: chairman and the chief executive of Tupperware Brands. Joining us now, Rick,
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  Speaker 1: thanks very much for being with us. Before we get
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  Speaker 1: into the details some of the numbers, I'm wondering if
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  Speaker 1: you could just describe for people what is Tupperware Brands today.
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  Speaker 1: It is not just the plastic can hangers by any means,
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  Speaker 1: and it is not just an American company. Oh no.
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  Speaker 1: Actually we're firstly product category, very much like uh Apple
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  Speaker 1: has morphed away from just computers and mostly as in
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  Speaker 1: other kinds of products, food storage is actually only about
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  Speaker 1: a fourth of our business. We have morphed into really
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  Speaker 1: high tech products in China are one of our biggest
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  Speaker 1: sellers is uh water filtration systems that are there are
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  Speaker 1: thousand dollars uh there. We're just launched uh this last month.
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  Speaker 1: They what's called a micro grill, which enables you to
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  Speaker 1: cook steaks in a microwave oven where we actually convert
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  Speaker 1: microwave energy into thermal energy. So we've gotten into uh,
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  Speaker 1: you know, water Uh, all kinds of new gadgets that
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  Speaker 1: really make food preparation easier, and it really is all
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  Speaker 1: about today's modern woman making her life easier. The other
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  Speaker 1: big thing is we're of our businesses outside the US,
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  Speaker 1: which shouldn't be a shock. The US only has about
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  Speaker 1: five percent of the world's population, and interesting were now
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  Speaker 1: just over three point one million sales force and most
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  Speaker 1: of these are young entrepreneurial women. And that's a sweet
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  Speaker 1: spot because millennial women, those borned after almost sixty of
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  Speaker 1: them don't want a job. They want to have their
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  Speaker 1: own business. I'm glad you mentioned your salesforce because back
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  Speaker 1: in twenty thirteen you set out a strategy and you've
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  Speaker 1: been talking about this for a while it's there. The
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  Speaker 1: two parts to it. Tell us about the first part
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  Speaker 1: this this involves new approaches to how you retain the
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  Speaker 1: sales force. What was spot on, what we basically did
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  Speaker 1: is part of one of our strategy is is to
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  Speaker 1: really we we operate under a fundamental that every successful
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  Speaker 1: business model works until it doesn't. And so the need
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  Speaker 1: is there for constant contemporization and improvement. And there are
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  Speaker 1: three parts really to that is to on board these
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  Speaker 1: new dynamic women, better get her active sooner, and get
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  Speaker 1: her to a point where her retention on our retention
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  Speaker 1: levels are higher. And in the markets where we've really
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  Speaker 1: done our learning laboratories, and and we're first movers on that,
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  Speaker 1: like uh, you know, temper were Mexico. You know we
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  Speaker 1: were up there, uh you know, mid teens in the
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  Speaker 1: quarter of our Brazilian business. I called it an eye
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  Speaker 1: popping up and it's I think that these strategies that
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  Speaker 1: are really leading to it, and now we're launching it
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  Speaker 1: in many more of our markets. The second piece of
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  Speaker 1: our strategy, it's going to take longer, but we're we're
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  Speaker 1: on our way in the learning laboratory phase and it
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  Speaker 1: really talks about using more digital tools, and we've initiated
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  Speaker 1: that in a number of our markets. Interesting, in Brazil
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  Speaker 1: this last month, we have a thing called tupper TV,
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  Speaker 1: and you know we have at a certain time, forty
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  Speaker 1: of our sales force will be on the tupper TV
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  Speaker 1: network at a given time. In China, where we have
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  Speaker 1: five thousand, five hundred of what we call experienced studios,
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  Speaker 1: they use we chat, so digital matters. Secondly, Interesting, we
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  Speaker 1: go through a lot of people because the areas are
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  Speaker 1: the barriers to entry or low to get into tupper Ware,
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  Speaker 1: but we lose a lot of the sales force. We
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  Speaker 1: just did studies in Germany and it showed that half
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  Speaker 1: of those that left tupper Ware, she still wants a relationship,
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  Speaker 1: and so we're creating a strategy that makes her a
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  Speaker 1: brand ambassador where we can mind uh the relationship equity
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  Speaker 1: that we have with them. And then thirdly, the movement
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  Speaker 1: to from rather than just big Tupperware distributor ships that
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  Speaker 1: are usually on the edge of town, you're gonna see
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  Speaker 1: Tupperware experienced studios that will be focused mostly on the
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  Speaker 1: sales force, but they'll be able to invite their consumers in.
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  Speaker 1: And everything is about demonstration of highly technical products that
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  Speaker 1: aren't commodity products anywhere. If you can just tell us
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  Speaker 1: the effects of the stronger US dollar on the results, well,
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  Speaker 1: I mean that has really had a negative impact over
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  Speaker 1: the last We've lost several hundred million in sales on
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  Speaker 1: the strengthening of the US dollar. But but I will
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  Speaker 1: say that when we look at this over time, over
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  Speaker 1: usually a decade period, it generally evens out. And that's
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  Speaker 1: why we came up with the strategy that what we
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  Speaker 1: were going to do with regard to leverage to support
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  Speaker 1: a dynamic dividend and then do share repurchase. Even though
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  Speaker 1: we've had this strengthening of the dollar the last four years,
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  Speaker 1: we've been able to support the dividend that is pushing
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  Speaker 1: five percent yield. So I think we've got the right
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  Speaker 1: strategy there, and we don't think the US dollar can
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  Speaker 1: continue with these rates. But this is certainly a time
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  Speaker 1: of uncertainty and the rest of the world, but that's
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  Speaker 1: where our business model works well in times of uncertainty.
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  Speaker 1: Thanks very much. Rick Goings is the chairman and the
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  Speaker 1: chief executive of Tupperware Brand's Corps joining us from Orlando, Florida.
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