Strait of Hormuz: How food and beverage companies can navigate the latest developments

This week has seen a two-week ceasefire announced by the US and Iran. Iran has agreed to temporarily re-open the Strait of Hormuz: although movements remain limited. But the situation is far from stable: and there are many unanswered questions about what happens next. Food and beverage companies have to accept that uncertainty will continue. Key food and beverage commodities have been affected in different ways by the Strait of Hormuz closure. However, for most food and beverage manufacturers, the closure of the Strait of Hormuz has brought three overarching challenges. First is packaging : with the Middle East an important source of polyethylene and aluminum. The second is fertilizer . That’s been a concern for any crop around the world: whether barley for beer or grains for snacks. And the third impact is simply the cost of getting products from A to B: with oil prices soaring. But for many commodities in food and beverage, the effects of the conflict are indirect: making it ...