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UK pubs and brewers risk closure – Financial Times

UK beer news

Soaring energy prices and lack of carbon dioxide reportedly threaten beer production.

UK brewers are facing tenfold price increases for the CO2 they use to carbonate and package beers, the Financial Times reported on Friday, also citing supply disruptions that could threaten brewing ahead of the Christmas season.

According to the report, the market disruption follows a warning from US fertilizer group CF Industries last month that it would shut down a major UK ammonia plant that makes CO2 as a byproduct. The company said its decision was due to soaring natural gas prices, which have made production unviable.

“Brewers have been approached with little or no notice by their suppliers to accept huge surcharges for the continued supply of CO2, or issued with ‘force majeure’ letters to say ‘we can’t guarantee that your supply will continue,’” policy director at the British Beer and Pub Association (BBPA) Andy Tighe told the media outlet. “This risks an awful lot of production coming to a standstill just at the wrong time,” he warned.

The report also pointed out that gas suppliers have been struggling to source CO2 from international markets because of ammonia plant closures in Europe.

The energy price spikes and shortages have come as brewers prepare to increase production for Christmas. According to William Lees-Jones, managing director at JW Lees brewery in Middleton, Greater Manchester, the CO2 that had cost £250 a ton ($284) in June was priced last week at £2,800 a ton ($3,187).

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Source:RT News

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2 COMMENTS

  1. There’s only one thing worse than a pub with no beer
    That’s a pub that’s not there
    They could always be converted into ‘warming centres’
    The lock downs have worked a treat
    For which they were designed
    Like in NZ
    To destroy and shut down small to middle-sized business’s
    Peoples lives
    And way of life
    Into the hands of state dependency
    And control
    Digital ID’s
    And a digital currency
    It was all deliberate intentioned contrived and calculated
    Knowing full well the desired and catastrophic consequences
    Sadly the social devastation and collapse bought about by these maleficent hostile actions
    Which has been inflicted upon the people of NZ
    Predominantly ignorant and asleep
    Is just beginning

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