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The Guardian World1 min read
Japanese snacks go black-and-white: Why Iran war is driving up ink prices
TL;DR
The US-Israeli war on Iran is causing Japanese snack makers to switch to black-and-white packaging due to ink shortages. Calbee, a leading brand, is temporarily altering the packaging of 14 products as a result of this global supply shock.
Key points
- US-Israeli war on Iran impacting global supply chains
- Calbee switching to black-and-white packaging
- Ink shortages affecting Japanese snack makers
- Japan imports 40% of naphtha from the Middle East
- Closure of the Strait of Hormuz causing supply disruptions
Mentioned in this story
CalbeeJapanIranMiddle East
The US-Israeli war on Iran is draining the colour from Japan’s supermarket shelves, with the biggest crisp makers swapping once-vibrant packaging for monochrome as a result of a shortage of ink.
Tokyo-based Calbee, one of the most popular brands in the snack market, has said it will – at least temporarily – switch to using black and white on the packaging of 14 of its products, including its Calbee Potato Chips.
Calbee is just one of many Japanese companies attempting to minimise the fallout from the faraway war in Iran, which has triggered a global supply shock. Since the end of February, when the war began, the Strait of Hormuz, through which one-fifth of the world’s oil is shipped during peacetime, has been effectively shut.
The closure of the strait has affected Japan, which imports 40 percent of its naphtha, an oil derivative needed to make printing ink, from the Middle East.
So, why is the Iran war driving up ink prices? And will crisp packets be colourful again?
What have Japanese companies said?
In a statement, Calbee said its decision to switch to black-and-white packaging was a response to “supply instability affecting certain raw materials amid ongoing tensions in the Middle East”.
“This measure is intended to help maintain a stable supply of products,” the company stated, adding that the new products would roll out on May 25.
Asked about Calbee’s move to simplify packaging to conserve materials, a government spokesperson said it was working to plug supply gaps and that imports from countries outside the Middle East were three times higher this month compared with before the war broke out at the end of February.
“We have not received any reports of immediate supply disruption for printing ink or naphtha and recognise that Japan as a whole has secured the quantities required,” Deputy Chief Cabinet Secretary Kei Sato said.
“Relevant ministries are working together and making efforts to communicate closely with impacted companies to grasp the situation,” he said, adding that a fact-finding hearing would take place on Tuesday.
However, major ink and chemical producers have raised prices due to the volatility in oil and gas supplies from the Middle East.
US-based Sun Chemical, a major global producer of ink and related products, said rising raw-material, logistics and energy costs were forcing broad increases across product lines.
Another leading specialist in printing inks, Germany-based Hubergroup, also announced a hike in prices due to key components experiencing “substantial cost increases” because of supply constraints.
“The scale and persistence of the current cost pressures make price adjustments unavoidable,” it said.
Q&A
How is the Iran war affecting ink prices in Japan?
The Iran war has disrupted the supply of naphtha, an oil derivative essential for ink production, leading to increased prices in Japan.
Which Japanese snack brands are changing their packaging due to ink shortages?
Calbee is one of the major brands switching to black-and-white packaging for 14 of its products due to the ink shortage.
What percentage of Japan's naphtha is imported from the Middle East?
Japan imports 40 percent of its naphtha from the Middle East, which is crucial for producing printing ink.
Will Japanese snack packaging return to color after the ink shortage?
It remains uncertain if and when Japanese snack packaging will return to vibrant colors, depending on the resolution of the supply issues caused by the Iran war.
