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CO2
is a byproduct of the ammonia produced by chemicals groups for
use in the manufacturing of fertiliser, engineering plastics and
diesel exhaust fluid.
Major chemicals companies have scaled back their operations in
the face of soaring energy costs. These include Norway's Yara,
which has put a brake on its ammonia and urea output at its site
in the northern Italian city of Ferrara.
"Our suppliers have informed us they are struggling to find CO2
because the Ferrara plant operations are curtailed due to high
energy costs," said Alberto Bertone, CEO and chairman of Italian
mineral water firm Acqua Sant'Anna.
Number three in the country's mineral water market, Acqua
Sant'Anna, based near Turin in northwest Italy, had to suspend
part of its usual production in response to dwindling CO2
supplies, Bertone said.
The shortage has become more acute over the past three weeks, he
added.
"Sometimes we manage to intercept some (CO2) shipments around
Europe, but the task is getting increasingly difficult as many
industry peers are facing the same problem."
Spared from the initial impact of shortages, Sanpellegrino, part
of international consumer goods group Nestle, has also now been
forced to trim its production, the company said.
"With regard to the problems experienced by companies in the
beverage sector due to the lack of CO2, the Sanpellegrino Group
informs that it has noticed decreases in the supply of carbon
dioxide and has taken steps to adjust production," it said in a
statement to Reuters.
Sanpellegrino is a familiar name across Europe with its
eponymous water and fizzy orange and lemon-flavoured drinks.
TEMPORARY SHORTAGES?
Britain suffered shortages of CO2, also used in the meat
industry, last autumn after one of its major fertiliser makers
cut production.
Italian soft drink industry lobby Assobibe, whose members
include global players such as Coca-Cola and PepsiCo, paints a
picture which is compounded by a seasonal spike in demand for
drinks over the summer months.
"An increased number of beverage groups, including big and
medium ones, have flagged their concerns about the current
situation in the CO2 market", said Assobibe chairman Giangiacomo
Pierini.
"It's hard to say whether some beverages will temporarily
disappear from supermarket shelves. But at some point companies
may be forced to make their choices," he added.
Pierini, an executive at bottling company Coca-Cola HBC, said at
present his firm is not experiencing any issues at its sites in
Italy where it produces some of the carbon dioxide it needs,
while its suppliers have confirmed their deliveries.
(Reporting by Elvira Pollina; Editing by Keith Weir and Janet
Lawrence)
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