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As Beer Prices Rise And CO2 Levels Rise, The Industry Continues To Struggle

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As Beer Prices Rise And CO2 Levels Rise, The Industry Continues To Struggle

(CTN News) – There is a growing concern among beer producers due to the fact that the brewing sector continues to face increased costs for essential inputs such as carbon dioxide and packaging.

There is no way to manufacture beer without CO2, according to Patrick Crawford, co-founder of Denver Beer Co., in an interview with Yahoo Finance in late September.

CO2 ranks fourth on our list of the most essential ingredients for beer, after barley, water, and hops.

Recent figures from the Producer Price Index (PPI) indicate that the price of carbon dioxide alone increased by 28% over the same period last year, based on the most recent figures.

However, it must be noted that despite the price of the necessary ingredient for beer having declined marginally from month to month, the scarcity of CO2 has not disappeared.

As beer distributors, food distributors, and beverage distributors all struggle to find a limited supply of the gas they need in order to process and preserve their goods, they are all facing the same problem.

It has been imperative for brewers to change their course before this season starts. There has been an increase in material costs and an aluminium shortage, which began during the epidemic and worsened in 2022 as a result of increasing production costs.

In turn, this has resulted in a rise in prices for consumers as well.

Crawford said that the price increases for cans and barley this year totaled between 15% and 20%. Thus, as a result, we have had to raise our prices in order to ensure the safety of our margins and maintain our profitability. It was inevitable that we would have to raise our prices since almost all of our input costs have increased.

The rise in input costs is, however, having the most adverse effects on local, smaller breweries. As stated in Good Beer Hunting, one of the reasons is that carbon capture equipment can be quite expensive, with starting prices typically starting around $100,000.

There has also been an increase in the acceptance of new customers by CO2 suppliers. Substitutions like nitrogen that can be used to reduce costs can significantly affect the taste of the beer.

It is hoped that the Denver Beer Company will be able to grow its business in the carbon dioxide capture sector. This is because the demand for carbon dioxide puts pressure on a wide variety of businesses.

Depending on the circumstances of the organization, it may be in a favorable position to do that at the opportune moment in time.

In Crawford’s opinion, industry-crossing collaboration creates a lot of carbon dioxide, which we produce more than what we can consume, which means we have to produce more carbon dioxide than we can consume. I believe we will be able to find a way to get it and package it.

A report by Denver Beer Co. states the company’s carbon capture technology can collect 100,000 pounds of carbon dioxide per year and prevent it from entering the air.

This allows them to achieve their broader goal of sustainability by preventing carbon dioxide from entering the atmosphere in the first place. It is very critical for this brewery, along with other environmentally conscious craft breweries, to use only renewable sources of energy to power its main brewing facility.

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