News On Japan

Japanese Companies Go Black-and-White on Naphtha Supply Shortages

TOKYO - A black-and-white version of Calbee's popular Kappa Ebisen snack has appeared on supermarket shelves in Tokyo as concerns over the supply of printing materials linked to Middle East tensions ripple through Japan's food industry, while more than 1,000 food products are set to become more expensive in June.

The newly released black-and-white Kappa Ebisen packaging reflects growing concerns about the supply of printing inks and other materials derived from naphtha, a petroleum product whose availability has come under pressure due to instability in the Middle East.

Regarding a roughly 23% decline in domestic naphtha production in April compared with the same month a year earlier, Economy, Trade and Industry Minister Ryosei Akazawa said on May 31st that the drop was largely due to a concentration of scheduled maintenance work at production facilities.

"The decline was caused by periodic maintenance being concentrated in that month," Akazawa said. "We expect production levels to return to 100% after April."

He added that the situation does not warrant public concern, saying there is no indication of a supply crisis that should alarm consumers.

According to Teikoku Databank, 1,078 food and beverage products will see price increases beginning this month, representing a sharp rise from May.

Meanwhile, Pan Pacific International Holdings, the operator of discount chain Don Quijote, announced that a new line of private-label products will feature black-and-white packaging.

The products will be introduced this month at approximately 670 stores nationwide, including Don Quijote outlets. The company said the simplified packaging reduces printing costs and, together with logistics improvements, helps keep prices low.

Focusing on daily necessities, the lineup will initially include 26 products, such as 500-milliliter bottles of water priced at 40 yen and packs of five tissue boxes priced at 196 yen.

The company also said the packaging strategy will help mitigate the impact of rising raw material costs and potential ink shortages stemming from worsening conditions in the Middle East.

As packaging materials become more expensive, retailers across Japan are accelerating efforts to adapt to supply chain disruptions and rising costs linked to geopolitical tensions.

Source: TBS

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