The CO2 Crisis: How Will Your Business Be Affected?
  • Home
  • Blog
  • The CO2 Crisis: How Will Your Business Be Affected?

The CO2 Crisis: How Will Your Business Be Affected?

A CO2 crisis is upon us! The gas, which is used to make drinks bubble and fizz is also needed to improve the shelf life of many much loved foods. Due to the short supply, pub, bar and restaurant owners across the UK are fearing they could lose business if there isn’t a quick solution. The production of chicken, fish and crumpets along with beer and soft drinks have all been affected.

What has caused the CO2 crisis?

CO2 is a natural gas which is created because of the fertiliser industry. As its summer and less fertiliser is needed, not as much CO2 is created. To add fuel to the fire, many factories have also closed their doors for essential maintenance – bad timing or what? In the UK, there’s just one plant which is still going and to import the gas from other countries is extremely costly.

Another major reason for the CO2 crisis stems from the glorious weather that we have been experiencing recently. More people are getting out and sitting in the sunshine. We can’t forget that it’s the World Cup too! Pubs and bars are full of people supporting their teams by enjoying a cold beer.

Where has the CO2 crisis left the hospitality industry?

Unfortunately for many pubs, bars and convenience stores, the UKs biggest wholesaler, Booker, has had to ration beer and soft drinks. It comes at a time when these businesses are naturally busier, so it’s a very frustrating situation.  Customers are limited to buying 10 cases of beer, or 5 cases of cider or soft drinks. As it stands, many pubs and bars haven’t yet started limiting their sales to customers but if the situation worsens, that might be the only option. This could be detrimental to some businesses.

If you own a company which is heavily reliant on products which require CO2, it might be worth looking at alternatives. If the worst does happen and the remaining CO2 is used up, you’ll have much more of a chance at impressing customers if you have something equally tasty to offer them. Cider for example also comes flat, so why not get some unique flavours which you can offer as a substitute.

How long will the CO2 shortage last?

Many people are arguing that the situation should have never got this bad. Supply started tightening in April and since then, the problem has reached critical. We are being assured that it is being dealt with though, and everything is being done by suppliers to improve the situation.

An emergency committee has also been set up by the Department for Environment, Food and Rural Affairs to find out the scale of the problem and discover just how badly it could affect businesses.

Despite this seeming like a very negative situation, a lot is being done by the government to fix it. We can only hope that this will be achieved quickly so that the hospitality industry can continue to flourish and enjoy a booming Summer.

If you are currently looking to expand your stock with new products that don’t contain CO2, Capify can offer between £3,500 – £500,000 in finance. Get a quote today and discover how much you qualify for.

Get A Quote