Extreme weather disruptions and supply chain snags forced the company to hike prices three times last year and rethink how it sources its most important ingredient. “That is our headache,” Calbee CEO Makoto Ehara told CNN in an interview. The issue is critical to the company as it embarks on an ambitious $1 billion turnaround and overseas expansion plan that will see it plow deeper into the world’s top two economies. The humble potato is serious business for the 74-year-old snack maker.
To make matters worse, in late 2021, floods in the US Pacific Northwest stopped ports from operating as usual, making it harder for Calbee to get both potatoes and potato flakes: small, white chunks of dried mashed potatoes used to make Jagarico, its popular line of crispy biscuit sticks. As a result, the company had to suspend sales promotions and new product launches, while accepting higher procurement and shipping costs.
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