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  4. Nationwide Carbon Dioxide Shortage Impacts Food and Beverage Firms - WSJ
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Nationwide Carbon Dioxide Shortage Impacts Food and Beverage Firms - WSJ

By Sam Boughedda The Wall Street Journal reported Friday that there is a nationwide shortage of carbon dioxide, meaning U.S. food and beverage firms are struggling to "keep...
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Nationwide Carbon Dioxide Shortage Impacts Food and Beverage Firms - WSJ © Reuters. Nationwide Carbon Dioxide Shortage Impacts Food and Beverage Firms - WSJ

By Sam Boughedda

The Wall Street Journal reported Friday that there is a nationwide shortage of carbon dioxide, meaning U.S. food and beverage firms are struggling to "keep operations running."

They state that supply disruptions over the summer have impacted carbon dioxide supply, affecting companies such as Tyson Foods (NYSE:TSN) and Kraft Heinz (NASDAQ:KHC). The lack of supply is said to threaten items such as cold cuts and beer.

Carbon dioxide is widely used in the food and beverage industry for aspects such as adding carbonation to soft drinks and keeping food items cold during transportation. It's also turned into dry ice to keep food frozen.

The WSJ said supplies have been tight since early 2020 when demand fell due to the Covid pandemic. However, with strong summer demand and production problems, supply has softened significantly.

In addition, they state that some major suppliers have limited deliveries to customers. Correspondance seen by the Wall Street Journal stated that in May, Tyson Foods said: "it was in an emergency state and needed help closing gaps in its carbon-dioxide supplies at plants in Iowa and Nebraska." In addition, the WSJ claims that in June, the company said it was in a "very big need" of gas for plants in 10 U.S. locations.

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