Shortage of CO2
Did you know that there is a shortage of CO2? No, this is not about global warming, this is about the fizz in the glass. Because we are driving less, because there is less ethanol production, because so many things are changing because of COVID, there is also a reduction in the production of CO2. I didn’t know until recently that companies who are reselling the Carbon Dioxide byproduct, are selling less ethanol or other products that produce CO2, therefore, CO2 is in short supply and high demand. Brewers are now paying up to 25% more than they used to pay for CO2 a year ago.
The sudden increase in prices for CO2 products and the decrease of CO2 also means that cans of carbonated drinks like soda could become more scarce. You may not be shopping as much, I know I’m not shopping as much, but I heard reports that the variety of flavors from carbonated drinks are also limited. So, what are my takeaways from this CO2 shortage? If you are operating your product from a byproduct, make sure that the byproduct is still available if the main product is no longer being produced. In other words, what could a company have done better to secure their supply? My second takeaway is that if you are operating with a byproduct, what could an alternate business model be for you to stay successful. Both are the initial questions that come to mind when I realize that my very own water bubbling machine at home is becoming harder and harder to be refilled.
#326, January 2021, CO2, beer, soda, carbonation, byproduct.