Fears have been raised over a shortage of beer due to a massive increase in the price of carbon dioxide, which is threatening production.
Carbon Herald reports that brewers are being hit particularly hard as CO2 is used in a whole series of steps in the beer-making process, from carbonating to packaging.
Three months ago UK brewers were paying an average of £250 per metric tonne of CO2. Last week the price peaked at a whopping £2,800 per tonne.
Read More: Price of pint could rise to £20 as pubs struggle against high costs
US fertiliser group CF Industries - which produces about a third of this country's supply of CO2 - last month announced it would be shutting down its ammonia plant in the UK in response to rising gas prices. Ensus, which supplies 40%, has temporarily closed its bioethanol plant in Teesside in another blow to the beer industry still reeling from the effects of the coronavirus pandemic, reports Wales Online.
The massive price hike is hitting small and regional brewers mainly as the bigger brewers have carbon capture systems that allow them to recapture their emissions. Supply chain issues threaten to bring some beer production to a halt as the industry is hit with another body blow to contend with following the pandemic.
Meanwhile, it was recently reported that the price of a pint would have to go up by “ridiculous” amounts to match the increase in pub running costs.
Tom Stainer, the chief executive of the Campaign for Real Ale (Camra) group, said that some pubs were seeing their bills go up by 500% to 600%. A Camra survey this summer found that more than 50% of the British public think the cost of a pint is already unaffordable, meaning customers would be put off by a £15 or £20 pint.
"What you can say with surety is you can't possibly pass on these energy increases and you can't increase the pint by 500%. It just isn't viable for pubs to pass (price hikes this big) on to consumers because people wouldn't come drink at pubs anyway."
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