Cosmetics expansion prompts Tupperware to change name and up outlook
Corporation to reflect the company's increasing product diversity
following its recent acquisition of Sara Lee's international direct
sales cosmetic business, a move that has also prompted the company
to upgrade its financial outlook.
Although Tupperware is well known for its practical plastic kitchenware, this activity tends to overshadow its direct cosmetics sales division, which is an established part of its business portfolio.
Tupperware Brands brought up Sara Lee's cosmetics division back in August for $556 million. Last year the business had sales amounting to $470 million in 18 countries including key growth markets in Asia and South America.
"This name change will reinforce that we are a multi-brand, multi-category direct sales company," said Rick Goings, chairman and CEO.
"Additionally, it will make it easier for our numerous new beauty companies to communicate that they are part of a family of direct selling companies, including those acquired today from Sara Lee Corporation, and that, in most cases, they willnot be selling Tupperware products."
The expansion of the company's cosmetics operations is expected to boost the current share of the company's cosmetics revenue from 12 per cent to 35 per cent of its total $1.2 billion sales last year.
The company's beauty division trades under the name Beauty Control, selling skin care, beauty, wellness, sun care and men's cosmetics through its international team of direct sales representatives.
In turn the acquisition will boost the company's global workforce to 1.9 million, as well as increasing sales revenues to between $1.75 and $1.8 billion.
Although the company is predicting that overall sales will be down in its key North American market, the company says that European sales should remain stable, while growth in the Asia Pacific and Latin America regions will register in the low single-digit percentage figures.
The company also pointed out that the growth in both the Asia Pacific and Latin America regions will be boosted by mid-single digit growth from its beauty operations.
The additional activity has prompted the company to upgrade its sales growth outlook for 2007 from 5 per cent to a possible 7 per cent, which also accounts for a 3 - 4 per cent growth in its overall beauty turnover.