Iran war: Staggering hike in packaging costs could be lurking for the likes of FSL Foods

Wednesday, 25 March 2026

Eliana Glover, the daughter of FSL Foods’ founders, says the company is eager to avoid raising prices in a cost-of-living crisis - but may be forced to.

One good thing for those in the berry industry contemplating the fuel price hike upon the world as a result of war in the Middle East, is that the height of the season has come and gone.

While they will still be forced to pay more to start their next season crops, with fertiliser and fuel a predominant concern, they are at least spared the cost of shipping the fresh fruit at a time when supply chains are starting to become disrupted.

Nelson-based FSL Foods, which sources, packs and sells frozen fruit and vegetables, mainly into retail under the Fruzio, Goodness Kitchen and The Berry Fix brands among others, has a few of the same concerns, and a few of its own.

The company, which was established by the Glover Family in 2003, is now run by daughter of the founders, Eliana Glover, and she too is dealing with the escalating cost of freight. FSL mainly imports its produce (usually that which is hard to grow in New Zealand) and what it processes is sold both domestically and internationally.

Glover says the company is seeing 6-9% increases on the FAF portion of domestic freight bills currently - FAF is the “Fuel Adjustment Factor”, a variable surcharge applied to base transport rates to account for fluctuations in fuel prices.

While she does not believe the increases to shipping will be anywhere near the “crazy increases” experienced during Covid, she acknowledged the key variable is how long the situation in the Strait of Hormuz continues.

“The FAFs are reviewed weekly, so we’re just watching and waiting right now, to see what they are when they come through,” she told The Post.

Perhaps more worrying for a company with a large retail presence is the impact of the current situation on packaging, which Glover said was yet to flow through.

“Obviously oil is a key component of plastic packaging so that is one that will be hitting our industry pretty hard,” she said. “We are hearing anything from 20-50% increases, so that’s a pretty big jump. That said, when you are purchasing raw materials and things like packaging, you are covered for a reasonable period forward, so we are not seeing those impacts yet.

“But that is the early indication from some of our packaging parters, so that is one we are watching out for.”

Another hit for the importer is the weakening New Zealand dollar, which for a while has been on a nice ascending trajectory, but since the war, has declined (Dr Anna Breman, New Zealand’s Reserve Bank Governor, said yesterday that because of the incline followed by the decline, the dollar has effectively barely moved).

Glover said if the war extends out for a long period of time and cost escalation continues, the company might have to look at price increases, but it is trying to avoid that, aware that unlike post-Covid, the economic picture in New Zealand this time is more fragile.

“Affordability is a real issue - I’m feeling it in my own back pocket and we are seeing it in shopper behaviour as well … I don’t think people can withstand increases as much at the moment.”

Luckily, frozen food sold by the likes of FSL tends to do well at times when people are curtailing their spending, as it offers less waste and more affordability in some produce types. But after an affordability-focused 2025, the company was starting to see a bit more spending and a move to some premium brands by customers - prior to the war on Iran.

“All businesses were really hopeful and optimistic about a better year and a stronger economy this year,” said Glover. “So this situation has really thrown a spanner in the works.”