Japanese snack giant switches to black-and-white packaging: What's the reason?
What's the story
Calbee, Japan's largest snack manufacturer, will soon switch 14 of its products to black-and-white packaging. The move comes in response to an ink ingredient shortage caused by supply chain disruptions. The ongoing conflict involving Iran and resulting disruptions in the Strait of Hormuz have affected naphtha imports from the Middle East, leading to this change.
Strategic shift
Temporary measure
Calbee has said that the decision to switch to monochrome packaging is a temporary measure. The company is doing this to ensure its snacks remain available on store shelves despite the ongoing supply chain issues. The firm has also postponed the launch of a new product due to these challenges.
Import strategy
Japan seeks alternative naphtha import routes
In light of the ongoing supply chain issues, Japan has stepped up its naphtha imports from other regions. The country is actively working with major corporations to ensure that naphtha is imported through routes other than the Strait of Hormuz. This strategy is part of a broader effort by Japanese companies to minimize the impact of rising costs and material shortages.
Market response
Calbee's shares dip slightly
Following the strategic shift to black-and-white packaging, Calbee's shares dipped slightly. The company's decision comes after a brief panic in March, when another crisps brand temporarily halted production due to difficulties in procuring heavy oil for its factory. Calbee was founded in Hiroshima in 1949 and has since grown into a global snack giant with products sold across Asia, Europe, and the US.