Tupperware 2Q16 Earnings Call Notes

Tupperware Brands (TUP) E. V. Goings on Q2 2016 Results

We’ve got a hill to climb in Turkey

“we’ve got a hill to climb in Turkey. We’ve got a large group of sales force, almost all women who she feeds her family out of this business, and we think it’s going to take some time to fix this. The Erdoğan government, and we’ve stayed close to what’s going on there; has been moving ever since he came into office as Prime Minister, have been moving away from the secular culture which is largely, you see, north of Bosphorus. And what was really established by Atatürk after the fall of the Ottoman Empire, more towards an Islamic influence that you see coming out of the government in Anatolia. So we’re watching this situation closely. It’s a bouncing ball. But we’ve learned from the past. We can continue to grow our businesses in areas even when there is major conflicts.”

The terrorism environment in France causes social and business challenges there

“Also, I don’t need to remind you of the terrorism we’re dealing with in France, which is not only horrific, but it causes challenges to the social and business environment there, where it gets harder to get people to come and leave their house, and come to a Tupperware Party. We don’t know what kind of tale there is going to be on this. You’re beginning to see these kind of actions or more the new normal.”‘

Millenials are looking for opportunities rather than jobs

“one of the things that’s really attractive to us right now is the change in the sales force of the pool where we’re really fishing for new sales force and new recruits, increasingly it’s those born after 1980, millennials. More of them has had commented in the past. It’s actually, the number is 58% are not looking for a job, but they want an opportunity. They want more flexibility. They are cost-oriented, and so I noticed this on my trips doing these through countries. Even I would contrast a country like Indonesia, where I start to see, I can be in remote areas of Indonesia, and the millennials there act like the millennials that I see in Berlin. And they’re looking for this kind of an opportunity.”

The Eurozone is important for European peace

“From a personal standpoint, I’ve got to say, Anna, I think the greater concern of Brexit is that, the more – not to get into beyond macroeconomics, but to more the political (01:29:37), we haven’t had a European war since 1945. Euroland may be sloppy, but there hasn’t been a war since 1945. The Balkans was a civil war. And in the previous 45 years before the war ended in 1945, a 113 million Europeans were killed by other European. And so the point is, Euroland finding some way to work together and to be economically tied. I mean, it really does matter. And what you’re good – if you start to see these boarders and walls, we exist there. You started to see rebuilding of CIS and their military, they’re one, this is the direction that he wants to go. It’s not good, overall, for the world. For the next three years, I don’t think it’s going to have much impact. But we certainly hope this is a different direction for the future just for peace.”