New York Daily News
Apr 18, 2020 6:44 PM
The coronavirus crisis could disrupt production of beer, soda and seltzer.(Lintao Zhang/Getty Images)
Beer and soft drinks could soon become the next items to disappear from store shelves and online shopping carts in the U.S., as producers scramble to acquire a key ingredient.
Brewers and soda-makers rely heavily on carbon dioxide, or CO2, the chemical responsible for the carbonization of their products. However, a recent drop in ethanol production in the U.S. could lead to a drastic shortage of the fizz-creating chemical, and result in a production nightmare for the beverage industry.
As Reuters reported, ethanol producers are extremely important to breweries and soft drink-makers because they capture CO2 as a byproduct of ethanol and sell it in large quantities.
The production of ethanol, which is blended in the gasoline supply, has suffered greatly by a recent 30% drop in gasoline demand caused by the coronavirus pandemic.
Barrels of beer are displayed on ranges at the Heineken factory. Coronavirus crisis could soon disrupt U.S. production of beer, soda, seltzer.(PATRICK HERTZOG/AFP via Getty Images)
According to Geoff Cooper, the president of the Renewable Fuels Association, 34 of 45 ethanol plants that sell CO2 in the U.S. have lowered production.
“The supply is rapidly deteriorating,” said Cooper. “Absent of some intervention to keep these facilities running, it will further deteriorate. We’re on the verge of something fairly disruptive. It’s going to be hard to come by.”
Bob Pease, the CEO of the Brewers Association, a trade group representing over 5,400 independent craft brewers in the U.S., said that prices of CO2 went up by about 25% due to reduced supply.
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“The problem is accelerating,” he said. “Every day we’re hearing from more of our members about this.”
Some brewers are expected to start cutting production in two to three weeks, according to Pease.
On April 7 Pease and Cooper joined a coalition of associations from breweries and meat packers — which use CO2 for refrigeration — in signing a letter sent to Vice President Pence.
The group expressed “our strong concern” over the damaging effects of CO2 shortages, saying that production had fallen 20% and could be further reduced by 50% by mid-April.
“A shortage in CO2 would impact the U.S. availability of fresh food, preserved food and beverages, including beer production,” the letter read. “If federal action is not swift, a slowdown in food and beverage manufacturing due to a shortage in CO2 will ultimately lead to shortages of needed goods.”
Coronavirus crisis may disrupt US production of beer, soda
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