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Drinks industry battles carbon dioxide shortage

Shortages of carbon dioxide (CO2) are leading to supply issues for soft drinks and carbonated mixers in Australia.

Home-brand soda water and lemonade are among the worst affected, with approximately 20 Woolworths brand soft drinks also affected.

A Woolworths spokesperson told news.com.au: “We are working to manage these impacts and a number of alternative products are available to customers while these shortages continue.”

Coles is also experiencing shortages. A spokesperson said: “We are working with our suppliers to minimise the impacts for our customers and we hope to have products back on our shelves as soon as possible.”

Coca-Cola Europacific Partners said it has enough supply to ensure there is no disruption to operations.

Australia’s carbon dioxide market relies on two multinational suppliers: the British company BOC and French firm Air Liquide.

Carbon dioxide is used in the production of consumer products such as packaged meats, baby foods, fresh foods and baked products.

It is also used to brew beers, make sparkling wine and to dispense beverages in hotels and pubs. 

BOC said it was experiencing a “short-term CO2 supply shortage on the east coast of Australia”.

“This is due to supply interruptions from several local CO2 sources and issues impacting international freight for imported CO2 product,” the company said.

BOC is building a carbon dioxide processing facility in Victoria that will be completed in the second half of 2024. It will have the capacity to produce 60,000 tonnes of beverage-grade liquid carbon dioxide annually.

Air Liquide said in a statement the disruption in its supplies was “as a result of a planned maintenance shutdown at the source location”.

“Air Liquide planned for this anticipated disruption and to date has minimised impact to its customers,” it said.

“Nonetheless, the CO2 situation remains tight and Air Liquide continues to monitor and manage its storage and supply chain.”

A spokesperson for the Australian Beverages Council told 7NEWS.com.au they expected the shortage to be “felt on shelves around the country for some time”.

Second crisis in 12 months

A carbon dioxide shortage threatened supply of key consumer goods in April 2023 following the closure of the Torrens Island A power station in Adelaide.

At the time, Hill Smith Family Estates reported the cost of carbon dioxide supplies has “approximately doubled” following the station’s closure.

“In general, CO2 is critical in wine production for many reasons, particularly if you are manufacturing sparkling wine,” a spokesperson said.

Are beer supplies at risk?

Europe faced a carbon dioxide shortage in 2021, with some soft drinks manufacturers pushed to the brink with only a few days of CO2 supply left in reserve. 

At the time, the British Beer & Pub Association said brewers and pubs were also facing issues.

CEO Emma McClarkin said: “As the threat of disruption to the availability of CO2 continues to grow, so does the potential impact on brewers and pubs.

“We continue to liaise with suppliers and are urging the Government to support those manufacturing processes we depend on for the majority of our CO2 to resume operations.”

Carbon dioxide is used extensively when brewing beer. Nitrogen can also be used but CO2 is the preferred option among most brewmasters. CO2 is mainly used in the carbonation process, giving the beer its fizz at the point of bottling, canning or kegging.

However, major brewers in Australia say they are unaffected by the shortage, as they capture CO2 produced during fermentation to carbonate their beverages.

An Asahi/Carlton United Breweries spokesperson said they have “adequate supply of CO2 to meet production requirements”.

Lion is also fairly self-sufficient as the brewing process produces carbon dioxide that can be captured and reused for its carbonated beverages.

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