THE WHAT? Following escalating violence in Sudan, one of the world’s major gum arabic suppliers, FMCG manufacturers face yet another supply chain crisis, according to a report published by Reuters.
THE DETAILS Sudan produces some 70 to 80 percent of world’s gum arabic, a key ingredient in soft drinks and used in cosmetics too. Manufacturers who rely on the ingredient, such as Coca Cola, have some three to six months stockpiled, Reuters reports.
THE WHY? Trade is said to have stopped abruptly as the conflict broke out and with uncertainty prevailing and communications down, there’s no end to the shortage in sight. Unlike drinks manufacturers, cosmetics brands do not rely on the ingredient but, no doubt there’ll be a run on viable alternatives, causing prices to spike yet again.