Looming Beer Shortage Risks Leaving England’s World Cup Fans Gasping

Looming Beer Shortage Risks Leaving England’s World Cup Fans Gasping

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A pint of beer is poured into a glass in a bar in London
A pint of beer is poured into a glass in a bar in London, Britain June 27, 2018. REUTERS/Peter Nicholls

By Martinne Geller and Anu Shukla
LONDON (Reuters)

A shortage of carbon dioxide has hit Britain’s biggest brewers and soft drink makers, disrupting production just as drinkers’ thirst peaks due to a heatwave and a World Cup soccer tournament in which England is doing unusually well

Hot weather and a build-up of beer stocks ahead of the World Cup lifted CO2 demand from brewers just as the gas was in short supply due to production shutdowns at chemical factories that produce it as a byproduct.

The CO2 shortage is also affecting producers of meat and frozen foods, which could put a chill on summer barbecues.

CO2, well-known as a greenhouse gas, is also used to stun animals before slaughter, to increase the shelf-life of foods and to make dry ice, which keeps frozen food cold in transit.

 

England soccer fans watch the team's first match in the World Cup against Tunisia at The Robin pub near Newcastle
England soccer fans watch the team’s first match in the World Cup against Tunisia at The Robin pub near Newcastle, Britain, June 18, 2018. REUTERS/Scott Heppell

 

Dutch brewer Heineken last week warned pubs about potential supply problems. It said on Wednesday it was working around the clock to get beers to customers as quickly as possible.

Coca-Cola European Partners has slowed some production of soft drinks.

Both companies say they are still able to meet demand from customers, though Tesco’s retail distribution business Booker said it was experiencing “supply issues” on soft drinks and beer. It did not specify on which brands.

British poultry processors have already warned that dwindling CO2 supplies could force them to slow or stop production, since more than half of them use the gas to stun birds before slaughter. The same is happening with pork processors.

 

A CO2 canister is seen connected to a drinks machine in a bar in London
A CO2 canister is seen connected to a drinks machine in a bar in London, Britain June 27, 2018. REUTERS/Peter Nicholls

 

Meat company Tulip on Wednesday halted production at its Brechin site, Scotland‘s largest pig abbatoir, after using up its stock of CO2. The company said it was extremely concerned about a lack of information from the gas sector about when the situation would be rectified.

“There’s been no update from the gas industry other than what was communicated at the beginning of last week,” said spokesman Nick Purnell. “In all honesty we’re not confident things are going to be back up and running as hoped for the beginning of next week.”

 

Air Liquide is the biggest of the industrial gas suppliers that buy carbon dioxide from the chemical sector and sell it to food and drink makers

The French company said the shortage was the result of “exceptional and simultaneous production shutdowns” of raw gas production units.

“Our teams are fully mobilised to try to meet our food and industrial customers needs in the context of a temporary shortage beyond our control,” it said.

 

 

Rival Linde in Germany said it was trying to keep up with customers’ demands by shifting European supply logistics.

Industrial CO2 is produced as a by-product of making ammonia used in fertilizer production. Fertilizer production typically peaks in winter to build stocks for spring farming, so plant maintenance-related shutdowns are common in summer.

What is different this year, according to the British Poultry Council, is lower-than-average production of ammonia, and also therefore CO2, due to lower ammonia prices. The Council also said at least one gas supply company has had technical difficulties that had restricted production further.

 

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