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Japan's Calbee swaps color for black-and-white amid supply crunch

Financial Times Companies •
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Calbee, Japan's largest snack producer, will drain color from packaging for 14 products starting May 25 due to Middle East war disrupting petroleum-based colorant supplies. The company, which controls half of Japan's savory snack market, plans to drop its signature Potato Boya mascot and bright red branding on Frugra cereal to maintain product availability during supply chain disruptions.

Japan's government insists the nation has ample supplies of printing ink and synthetic resins despite the Strait of Hormuz closure, with officials meeting Calbee Tuesday to understand the situation. Some analysts suggest the move bears hallmarks of a PR stunt designed to generate attention before potential price hikes, though consumer confidence has already declined significantly since the conflict began.

The "dye-flation" trend follows "shrinkflation" measures across Japanese businesses facing rising costs. Food producers warn colorful packaging may become difficult as naphtha shortages persist. Convenience stores Lawson is considering reducing water bottle sizes, while soft drink companies plan to cut labeling to a quarter of current size, demonstrating how geopolitical tensions are reshaping Japan's consumer goods market.