Source: Fortune
Summary
Japanese snack maker Calbee is switching to black and white packaging for some products due to supply instability caused by the Iran war. The company’s potato chip products, Kappa Ebisen shrimp-flavored snacks, and Frugra fruit and granola mix will be affected. The measure is intended to maintain a stable supply of products. Calbee imports over 60% of its naphtha, a key material used to produce printing ink, from the Middle East. The Iran war has disrupted the supply chain, causing prices to rise by 60% year-over-year.
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Calbee’s packaging predicament is partly due to a tightening in the supply of naphtha, a liquid hydrocarbon mixture derived from petroleum. The company imports over 60% of its naphtha from the Middle East. The Iran war has caused prices to rise by 60% year-over-year.
Other Japanese companies, such as Itoham Yonekyu and Shiseido Co., are also considering changes to their packaging and product lines due to the naphtha shortages.
The announcement comes as the Iran war continues to disrupt supply chains worldwide.
Calbee’s decision is a “wartime measure” to maintain a stable supply of products.
The strategy enters a familiar phase: when supply chains are disrupted, companies adapt by cutting costs and simplifying production.
Author: Evan Null
