Running on fumes — co2 shortages, higher prices add to breweries’ rising costs

Ongoing disruptions to breweries’ supply of carbon dioxide have made national news on the heels of a decision by Massachusetts-based Night Shift Brewing to outsource most beer production in part because it was unable to source the gas needed to carbonate its beer. Combined with higher costs breweries are already paying for items like aluminum, malt, and packaging materials, the burden of having less CO2, paying more for it, or not being able to carbonate and sell as much beer as planned represents a crisis for breweries’ profit margins.

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Craft breweries are facing tough decisions amid a nationwide carbon dioxide shortage

Breweries have already been facing higher costs for raw materials like aluminum and barley as a result of inflation. Craft breweries across America have been on the front lines of businesses facing higher material costs because of inflation. Now, many are confronting a shortage of a key ingredient: carbon dioxide, the gas that gives beer its crisp, effervescent taste. And one brewer has already said it plans to shut down a key manufacturing plant and lay off workers as a result.

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