According to Axios, many small breweries are struggling with the rising cost of raw materials and the lack of sufficient supply chain management. Bart Watson, an economist at the Brewers Association, said that many of these companies are struggling to keep their doors open.
Despite the overall increase in beer prices, they have not gone as high as those in the broader market. This could change as the cost of grain and CO2 continues to rise.
The shortage of beer in the US is caused by the lack of carbon dioxide. Due to the natural contamination of a reservoir in Mississippi, many breweries are reducing their carbon dioxide production.
Several breweries in the US have reported delays in their production, and they are planning on switching to nitrogen as their carbon dioxide supply has decreased. One company in Boston temporarily closed its facility due to the lack of supplies.
Following the pandemic, the lack of carbon dioxide is threatening the recovery of the beer industry. The UK is also experiencing the same issue.
According to The Sun, CF Fertilizers has temporarily suspended operations at its plant in Billingham due to the rising cost of energy. This could affect the food supply and beer production.
According to Emma McClarkin, the chief executive of the British Pub and Brewery Association, the timing of the issue could not be worse.
Experts warned that the lack of carbon dioxide could affect the Christmas beer supply in the country.