Snack giant switches to black and white packaging as Iran war hits ink supplies
Summary
Japanese snack company Calbee will temporarily use black and white packaging for 14 products due to shortages of an ingredient for ink caused by the conflict in Iran. The war has disrupted supplies of naphtha, a chemical used in ink and plastics, raising costs for many companies in Asia and around the world.Key Facts
- Calbee is Japan’s largest snack maker and will change packaging colors starting May 25.
- The war in Iran has disrupted supplies of naphtha, a byproduct of oil refining used in inks and plastics.
- Naphtha prices in Asia have nearly doubled since the conflict began on February 28.
- About 40% of Japan’s naphtha imports come from the Middle East.
- The Japanese government is working to stabilize supply and find alternative sources, including the US.
- Other companies such as Mizkan and car makers Toyota and Hyundai are also affected by higher material costs.
- Airlines worldwide have paused flights due to increased jet fuel prices caused by the war.
- Some retailers like UK’s Next have raised prices because of fuel costs and supply chain issues.
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