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The Impact of Iran War on Japanese Snacks 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. Calbee's Response to Ink Shortage 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. The Data Analysis Japan imports 40 percent of its naphtha, an oil derivative needed to make printing ink, from the Middle East. The closure of the Strait of Hormuz has affected Japan, leading to a global supply shock. The Impact Analysis The war has triggered a global supply shock, affecting supplies of key ingredients used in coloured inks. Printing inks rely heavily on petrochemical feedstocks, including solvents and resins derived from naphtha, a crude oil by-product. The Prediction Major ink and chemical producers have raised prices due to the volatility in oil and gas supplies from the Middle East. The substantial volume of naphtha Japan imports from the Middle East makes Japanese manufacturers highly vulnerable to the security situation there.

The Packaging Pivot Japan’s biggest snack maker, Calbee, has been forced to use black-and-white packaging for some flagship products because of ink ingredient shortages caused by the Strait of Hormuz blockade. Details of the Supply Chain Disruption Calbee, whose potato chip brands in particular are known for brightly coloured bag designs, said 14 of its products would switch to monochrome branding by the end of May. The move to black and white was forced on Calbee by disrupted supplies of naptha, an ink ingredient derived from petroleum. Impact on Business Operations Calbee said it was reacting to an unstable supply of “certain raw materials” due to the war. Japanese companies have lately sought to minimise the impact of rising costs and material shortages even as the government seeks to reassure the public and businesses over supplies. Government Response and Future Outlook A government spokesperson said domestic naphtha refining continued with the use of stockpiled crude oil, while imports from outside the Middle East have tripled in May compared with levels from before the Iran war broke out in late February. Kei Sato, a senior government spokesperson, assured the public that naptha shortages would not cause wider disruption.