The massive CO2 shortage has begun to affect Salford Brewery SEVEN BRO7HERS BREWING CO, as they came just weeks from shutdown.
Environment Secretary George Eustice said carbon dioxide prices would rise from £200 per tonne to £1,000.
At least 1.5 million consumers have seen their suppliers go to the wall in recent weeks after the energy sector was hit by rocketing global wholesale gas prices.
Keith McAvoy, CEO from SEVEN BRO7HERS BREWING CO, in Salford, said: “We have a two-to-four-week supply of CO2 so last night’s bail out deal with the government couldn’t have come any sooner. As little as a three delay in CO2 supply [sic] could have a major impact on our business. That said, it is likely our CO2 costs will increase because of the government investment which will have direct impact on our margin.
— SEVEN BRO7HERS BREWING CO. (@SEVENBRO7HERS) September 22, 2021
“The decision has accelerated our plans to carbon capture our own CO2 to make ourselves more independent and self-reliant in times like this. In the brewing process one of the biproducts of the fermenting is the release of CO2. We are exploring different ways to capture this and add it to our reserve. Our goal is to become a carbon negative business.”
Discussing the supply chain impacts of national post-pandemic shortages, Keith added: “Currently every part of the production and supply chain process is being squeezed. We have been impacted by lack of carboard supplies and the access to raw ingredients to make the beer. We have faced challenges meeting deadlines with customers, due to the shortage of HGV drivers affecting our suppliers.
“Challenges we don’t need coming out of covid-19.”