Rick Goings
Chairman & Chief Executive Officer
Dear Shareholders,
2010 was a successful year for Tupperware Brands, as we achieved many of our
goals. Our 6% full year local currency sales increase was within our target and longer
term guidance range. While the 2% decrease in our established markets was a bit
softer than we would have liked, being up 15% in our emerging markets exceeded
our expectations. So on balance, we continued to progress. Our profitability continued
to improve, we generated strong cash flow and we raised our dividend by 20%.
Recently, we announced a new dividend policy and accelerated share repurchase
plan for 2011 and beyond, because we have confidence in the future and
confidence in our ability to continue to grow sales and generate cash.
We are a global portfolio, doing business in almost 100 countries, with a healthy mix
of emerging and established market economies. We had great successes in many of
our markets, including Tupperware Austria, Brazil, France, India, Indonesia,
Malaysia/Singapore, South Africa and Turkey. Meanwhile, we had some
disappointments as well, such as in Russia, Australia and our BeautiControl business.
Natural disasters and economic upheavals disrupt our sales force growth and thus
require rebuilding efforts, though we find that our geographic and product diversity
help mitigate the effects of these factors and keep us growing. Because we are a
global company, there will always be challenges that arise. But I believe, and we’ve
seen, that our management teams have the skills to navigate through such obstacles
and a business model that is highly adaptable.
When we distill down our business model, there are four key elements which we have
identified that are critical success drivers for every market’s success. In essence, they
are our formula. Our continued growth is not due to luck; it’s because we understand
how to execute this formula:
• Developing innovative products with great design
• Creating entertaining selling situations
• Offering our sales force compelling earning and leadership development
opportunities
• Employing dynamic direct selling fundamentals
But what really makes our formula work is our attitude that every successful
business formula works, until it doesn’t. With that mindset, we have created a
culture focused on the constant renewal of the way we execute our formula’s
components. Essentially, we are a group of multi-local businesses. At our best, we
are simply trying to create “repeater stations” around the world, adapting and adopting
the formula to local needs.
Tupperware Brands is fortunate in that we are able to increase the size of our business
with very little investment in financial capital. Tupperware's growth comes from its
worldwide sales force, and for over 50 years we have made an unwavering
commitment to Enlighten, Educate and Empower Women and their families across
the globe. We are therefore passionate about changing lives and instilling
confidence in every one of our sales force members. We invest a substantial amount
of effort and money each year to build and maintain momentum in these individuals.
We support them with strong training programs and attractive career opportunities
to help them achieve personal and professional success. All these expenditures are
included in our routine operating costs and are not capitalized. We ended 2010 with
a record level of 2.6 million in our diverse sales force, and this diversity gives us
strength and power.
We achieved many of our 2010 goals. Going forward, our priority is the sustainability
of the enterprise, and that comes from a focus on revenue and profit generation
supported by a solid financial structure. We are looking for good growth, from a focus
on the key fundamentals that make our businesses thrive. This strategy enabled our
2010 success, and gives us confidence that we will be able to repeat this success
year after year.
BALANCE OF EMERGING AND ESTABLISHED MARKETS
Established 44% of 2010 Sales
Emerging 56% of 2010 Sales
GREATER GEOGRAPHIC DIVERSITY
2000 Sales
2010 Sales
US & Canada
21%
Europe, Africa &
Middle East
40%
US & Canada
13%
Europe, Africa &
Middle East
35%
Latin America*
16%
Latin America*
27%
Asia Pacific
23%
*Includes Mexico and South America
Asia Pacific
25%
STRATEGIC BLUEPRINT FOR GROWTH
R
T
S
E N G T H E N
SHARE
1. Innovative Products
2. Entertaining Selling Situations
3. Compelling Earning &
Leadership Opportunities
4. Direct Selling Fundamentals
R
EFRESH
E M E
I M P L
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• Larger Sales Force
• Stronger Productivity
• More Customers