Japanese snack giant Calbee is temporarily switching to black and white packaging for some of its popular products due to supply disruptions caused by the Iran war. The change affects 14 products, including crisps and prawn crackers, and will start appearing in Japanese shops on May 25. This move is a direct result of the shortage of a key ingredient used in ink production.
Calbee’s decision comes as companies worldwide struggle with supply chain disruptions caused by the conflict. The war has led to a surge in oil and gas prices, with shipments through the Strait of Hormuz halted. As a result, supplies of naphtha, a byproduct of oil refining used in ink and plastics, have been severely impacted.
War Impact on Packaging
The design change is a response to the “supply instability affecting raw materials amid ongoing tensions in the Middle East,” according to Calbee. The company aims to maintain a stable supply of products despite the challenges. Naphtha prices in Asia have almost doubled since the conflict started, pushing up costs for businesses in the region.
Before the war, Japan relied heavily on the Middle East for naphtha, with around 40% of its supply coming from the region. The Japanese government is working to stabilize and resolve supply imbalances, with Prime Minister Sanae Takaichi announcing plans to broaden the country’s naphtha supply to include more sources outside the Middle East, such as the US.
Asian countries have been particularly hard hit by the disruptions to shipping through the Gulf, with companies like Japanese foodmaker Mizkan suspending sales of some products and raising prices for others due to shortages. Car makers like Toyota and Hyundai have also seen their profits affected by higher material costs and lower sales.
Global Supply Chain Disruptions
The impact of the war on global supply chains is being felt far beyond Japan, with airlines pausing flights and grounding planes due to surging jet fuel prices. Fashion chains like Next have raised prices in response to higher fuel costs and supply chain disruptions. As the conflict continues, companies and consumers alike are bracing for further disruptions and price increases.
The war’s effects on everyday goods, from snacks to clothing, serve as a reminder of the complex and far-reaching nature of global supply chains and the significant impact of geopolitical conflicts on the economy.
