Carbon dioxide shortage could impact beer supply

WOODBRIDGE, Va. - There’s another shortage and this one could make happy hour for drinkers, not so happy.

A carbon dioxide shortage could impact the beer supply nationwide. Carbon dioxide, also known as CO2, is needed to make beer bubble. 

CO2 creates the froth in beer. FOX 5 has learned that local breweries could be impacted the most due to larger companies having the capability and resources to recycle CO2.

Even so, breweries in Woodbridge say so far so good.

The CO2 shortage comes at a time when breweries are navigating additional issues like the cost of bottles, supplies, and grain.

DC area businesses feeling impact of nationwide supply-chain issues

Experts say the shortage is due to contamination at the only company east of the Mississippi that provides CO2 to manufacturers and breweries. That carbon dioxide hub is in Jackson, Mississippi and a supply chain researcher we interviewed compared the CO2 shortage to the same type of situation that prompted a baby formula shortage nationwide.

"The first thing was the craft beer manufacturers just cut supply right down to the amount of CO2 that they can get their hands on, so that creates a risk. The amount of production could end up breaking below profitability for those companies," said Robert Kelley, a senior partner at Headstorm.

Kelley added that the CO2 problem could be indefinite and impact the soda industry next.