Restoring order following Japan’s potato shortage boosts Calbee’s bottom line

The Japanese snack giant reported net sales of $551m for the first three months of the fiscal year ending March 31, 2019, due to increased sales of snack foods in the domestic market. Analysts expected the company to report $5.43bn, an increase of 6.92% over the prior year quarter. The company said sales of potato chips increased significantly due to the continued strong demand since sales resumed last year after a disastrous potato shortage was caused by four typhoons in August 2016, which hit the Hokkaido region, which supplies 80% of Japan’s potatoes. Sales of potato chips were halted for three months, sparking a buying frenzy among Japanese consumers who scrabbled to stockpile the last remaining bags of their favorite snack. Calbee North America also posted improved costs due to a reduction in losses from waste. Read more