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A drop in carbon dioxide supplies is creating concerns among beer, soda and seltzer water companies who use the gas to create fizz in their products, according to Reuters.
Ethanol producers are a major contributor of the gas to food and beverage companies. They collect the gas as a byproduct when making the renewable fuel. But the market for ethanol has been cut as consumers drive less, forcing many U.S. ethanol plants that sell carbon dioxide to idle or cut production, the wire service noted. Ethanol is blended into most of the country’s gasoline supply.
Bob Pease, chief executive officer of the Brewers Association, told Reuters carbon dioxide suppliers have increased prices by about 25% due to reduced supply. “The problem is accelerating. Every day we’re hearing from more of our members about this,” said Pease, who expects some brewers to start cutting production in two to three weeks.
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