WEBVTT - Tupperware's Goings: 92% of Business Is Outside the U.S.(Audio)

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<v Speaker 1>Global business news twenty four hours a day. If Bloomberg

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<v Speaker 1>This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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<v Speaker 1>I'm Charlie Pelot. Stocks higher on track for records. Let's

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<v Speaker 1>head right over to the First Word Breaking news desk

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<v Speaker 1>for today's afternoon call, and here's Bill Maloney. Good afternoon.

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<v Speaker 1>Charlie gains for the manuals averages again today with Daal's

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<v Speaker 1>DAL currently higher by forty four points as he's game

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<v Speaker 1>nine and as it rises fifty three. The small cap

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<v Speaker 1>six hundreds up five points, and there was ten yield

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<v Speaker 1>at one point five eight percent. Six out of ten

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<v Speaker 1>sub sectors are higher, led by games in technology, healthcare

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<v Speaker 1>and consumer discretionary. Consumer stables and utilities led to the downside.

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<v Speaker 1>Transports are little change and as a biotex rise sixty

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<v Speaker 1>nine and the vix is down by two percent. Doll

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<v Speaker 1>leaders included Microsoft, Cisco, and Intel, while Disney fell one

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<v Speaker 1>point two percent. It Shares where cuts a hold, rat

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<v Speaker 1>Steeple and now that there's Kellogg fell as much as

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<v Speaker 1>five point two percent after CNBC reported that there is

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<v Speaker 1>no true to speculation on the craft Deal and some

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<v Speaker 1>of the names supporting after the bell to night include Intel,

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<v Speaker 1>American Express, Qualcom and eBay. Live from the first breaking

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<v Speaker 1>news desk don Bill Maloney show, right, Thank you very much,

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<v Speaker 1>Bill Maloney, and do your live breaking news over your

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<v Speaker 1>Bloomberg tipe squawk squ a w k on your terminal.

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<v Speaker 1>I'm Charlie Pellic, and that's so Bloomberg Business Flash. You're

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<v Speaker 1>listening to taking stock with bim Box and Kathleen Hayes

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<v Speaker 1>on Bloomberg Radio. Shares of Tupperware they are up more

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<v Speaker 1>than eight percent today after reporting quarterly results. And here

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<v Speaker 1>to tell us more is Rick Goings. He is the

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<v Speaker 1>chairman and the chief executive of Tupperware Brands. Joining us now, Rick,

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<v Speaker 1>thanks very much for being with us. Before we get

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<v Speaker 1>into the details some of the numbers, I'm wondering if

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<v Speaker 1>you could just describe for people what is Tupperware Brands today.

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<v Speaker 1>It is not just the plastic can hangers by any means,

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<v Speaker 1>and it is not just an American company. Oh no.

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<v Speaker 1>Actually we're firstly product category, very much like uh Apple

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<v Speaker 1>has morphed away from just computers and mostly as in

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<v Speaker 1>other kinds of products, food storage is actually only about

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<v Speaker 1>a fourth of our business. We have morphed into really

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<v Speaker 1>high tech products in China are one of our biggest

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<v Speaker 1>sellers is uh water filtration systems that are there are

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<v Speaker 1>thousand dollars uh there. We're just launched uh this last month.

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<v Speaker 1>They what's called a micro grill, which enables you to

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<v Speaker 1>cook steaks in a microwave oven where we actually convert

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<v Speaker 1>microwave energy into thermal energy. So we've gotten into uh,

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<v Speaker 1>you know, water Uh, all kinds of new gadgets that

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<v Speaker 1>really make food preparation easier, and it really is all

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<v Speaker 1>about today's modern woman making her life easier. The other

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<v Speaker 1>big thing is we're of our businesses outside the US,

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<v Speaker 1>which shouldn't be a shock. The US only has about

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<v Speaker 1>five percent of the world's population, and interesting were now

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<v Speaker 1>just over three point one million sales force and most

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<v Speaker 1>of these are young entrepreneurial women. And that's a sweet

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<v Speaker 1>spot because millennial women, those borned after almost sixty of

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<v Speaker 1>them don't want a job. They want to have their

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<v Speaker 1>own business. I'm glad you mentioned your salesforce because back

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<v Speaker 1>in twenty thirteen you set out a strategy and you've

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<v Speaker 1>been talking about this for a while it's there. The

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<v Speaker 1>two parts to it. Tell us about the first part

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<v Speaker 1>this this involves new approaches to how you retain the

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<v Speaker 1>sales force. What was spot on, what we basically did

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<v Speaker 1>is part of one of our strategy is is to

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<v Speaker 1>really we we operate under a fundamental that every successful

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<v Speaker 1>business model works until it doesn't. And so the need

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<v Speaker 1>is there for constant contemporization and improvement. And there are

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<v Speaker 1>three parts really to that is to on board these

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<v Speaker 1>new dynamic women, better get her active sooner, and get

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<v Speaker 1>her to a point where her retention on our retention

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<v Speaker 1>levels are higher. And in the markets where we've really

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<v Speaker 1>done our learning laboratories, and and we're first movers on that,

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<v Speaker 1>like uh, you know, temper were Mexico. You know we

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<v Speaker 1>were up there, uh you know, mid teens in the

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<v Speaker 1>quarter of our Brazilian business. I called it an eye

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<v Speaker 1>popping up and it's I think that these strategies that

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<v Speaker 1>are really leading to it, and now we're launching it

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<v Speaker 1>in many more of our markets. The second piece of

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<v Speaker 1>our strategy, it's going to take longer, but we're we're

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<v Speaker 1>on our way in the learning laboratory phase and it

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<v Speaker 1>really talks about using more digital tools, and we've initiated

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<v Speaker 1>that in a number of our markets. Interesting, in Brazil

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<v Speaker 1>this last month, we have a thing called tupper TV,

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<v Speaker 1>and you know we have at a certain time, forty

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<v Speaker 1>of our sales force will be on the tupper TV

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<v Speaker 1>network at a given time. In China, where we have

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<v Speaker 1>five thousand, five hundred of what we call experienced studios,

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<v Speaker 1>they use we chat, so digital matters. Secondly, Interesting, we

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<v Speaker 1>go through a lot of people because the areas are

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<v Speaker 1>the barriers to entry or low to get into tupper Ware,

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<v Speaker 1>but we lose a lot of the sales force. We

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<v Speaker 1>just did studies in Germany and it showed that half

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<v Speaker 1>of those that left tupper Ware, she still wants a relationship,

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<v Speaker 1>and so we're creating a strategy that makes her a

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<v Speaker 1>brand ambassador where we can mind uh the relationship equity

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<v Speaker 1>that we have with them. And then thirdly, the movement

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<v Speaker 1>to from rather than just big Tupperware distributor ships that

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<v Speaker 1>are usually on the edge of town, you're gonna see

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<v Speaker 1>Tupperware experienced studios that will be focused mostly on the

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<v Speaker 1>sales force, but they'll be able to invite their consumers in.

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<v Speaker 1>And everything is about demonstration of highly technical products that

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<v Speaker 1>aren't commodity products anywhere. If you can just tell us

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<v Speaker 1>the effects of the stronger US dollar on the results, well,

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<v Speaker 1>I mean that has really had a negative impact over

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<v Speaker 1>the last We've lost several hundred million in sales on

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<v Speaker 1>the strengthening of the US dollar. But but I will

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<v Speaker 1>say that when we look at this over time, over

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<v Speaker 1>usually a decade period, it generally evens out. And that's

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<v Speaker 1>why we came up with the strategy that what we

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<v Speaker 1>were going to do with regard to leverage to support

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<v Speaker 1>a dynamic dividend and then do share repurchase. Even though

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<v Speaker 1>we've had this strengthening of the dollar the last four years,

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<v Speaker 1>we've been able to support the dividend that is pushing

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<v Speaker 1>five percent yield. So I think we've got the right

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<v Speaker 1>strategy there, and we don't think the US dollar can

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<v Speaker 1>continue with these rates. But this is certainly a time

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<v Speaker 1>of uncertainty and the rest of the world, but that's

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<v Speaker 1>where our business model works well in times of uncertainty.

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<v Speaker 1>Thanks very much. Rick Goings is the chairman and the

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<v Speaker 1>chief executive of Tupperware Brand's Corps joining us from Orlando, Florida.

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<v Speaker 1>This is taking stock and this is Bloomberg coming up

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