Tupperware Brands
Annual Report 2009

Plain-text annual report

Rick Goings Chairman & Chief Executive Officer Dear Shareholders, As we look back over the last decade, we can be proud of our strategic efforts that have transformed Tupperware Brands into a stronger and more dynamic company. We’ve contemporized our core, including products, selling methods and sales force compensation structures. We sell in more than two dozen emerging markets, and many of them are now at scale. Most recently we’ve successfully expanded into direct sales of beauty products. Importantly, we believe our business model will provide sustainable performance. In 2009, our emerging markets comprised 51% of our sales and grew 14% in local currency as compared with 2008. We had great successes in many of these markets, such as Indonesia where we almost doubled the business last year, as well as Tupperware Brazil, Mexico, Russia and South Africa. We had notable increases in a growing number of established markets as well. We generate strong cash flows, have continued to reduce our debt levels, and have a strong and improving return on sales. We raised our dividend for the first time in our history and accelerated our share repurchases because we have confidence in the future and confidence in our ability to continue to grow sales and generate cash. Confidence in our Company Our strong management teams have many years of experience in direct selling and know how to navigate challenging external environments. As we advance into the next decade we will continue to focus on our three main competitive strengths: • Developing innovative and relevant products that consumers want to buy and our sales force is eager to sell. • Creating selling situations that are entertaining and informative for consumers and profitable for our sales force as they demonstrate the features and benefits of our products. • Refining and promoting compelling career opportunities that enable us to attract a dynamic sales force. Confidence in our Brands Confidence is what drives people to our brands. We are passionate about the quality and integrity of our products. Tupperware Brands Corporation was recently named one of Fortune’s “World’s Most Admired Companies” for the third year in a row. We were awarded one of the highest distinctions in the realm of design: the 2009 “red dot design team of the year” in one of the world’s leading and largest design competitions. Tupperware Brands was named as one of “America’s Best Big Companies” by Forbes.com. We were named “Superbrand of the Year” in India, and in Russia we were awarded the country’s coveted “Product of the Year” for trendy design and function in modern kitchenware. Confidence in our Sales Force Self confidence is the memory of past success. For over 60 years, we have made an unwavering commitment to Enlighten, Educate and Empower women and their families across the globe, creating invaluable connections that last a lifetime. Tupperware Brands is passionate about changing lives and instilling confidence in every one of our sales force members. We support them with strong training programs and attractive career opportunities to help them achieve personal and professional success. As they help others in the organization achieve success, they gain confidence in their leadership skills. Our Chain of Confidence campaign celebrates the powerful bonds of friendship that connect women together and significantly shape who they are and who they have the potential to become. Confidence in our Future We are pleased to see that all the work that has been done this past decade is producing results. Management’s job #1 is the sustainability of the enterprise. Supporting that is our solid and adaptable business model, our well respected brands, and most importantly, the quality of our management and sales teams across the globe. We will continue to work towards focusing our resources on growth, lower debt levels and improved profitability. We believe that companies like Tupperware Brands with platforms in multiple markets, in multiple currencies and with a footprint that includes businesses in emerging and established economies will be in an advantageous position in the next decade. EMERGING AND ESTABLISHED MARKETS Established 49% of 2009 Sales Emerging 51% of 2009 Sales GREATER GEOGRAPHIC DIVERSITY 1999 Sales 2009 Sales US & Canada 18% Europe, Africa & Middle East 46% US & Canada 15% Europe, Africa & Middle East 36% Latin America* 13% Latin America* 26% Asia Pacific 23% *Includes Mexico and South America Asia Pacific 23% COMPETITIVE STRENGTHS STRATEGIC PLATFORMS FOR GROWTH • Developing Innovative and Relevant Products • Creating Entertaining and Informative Selling Situations • Refining and Promoting Compelling Career Opportunities • Extensive Direct Selling Experience of Management s t e k r a M Keep focus on “Crown Jewels” Fix under Performers Penetrate Key Emerging Markets Accelerate Growth in Latin America MOBILIZE! Drive Leadership Development Sales Management Development Strengthen Marketing Mix Fast Forward Supply Chain Optimization s e s s e c o r P & e p o e P l 

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