CO2 - Critical Supply Chain Constraint - Update

05 October 2021 - Inn Express

Please take a moment to read a recent update regarding Air Liquide’s CO2 Supply Chain and the impact on beverage cylinder supplies. This letter has been distributed to the Air Liquide distribution network.

Frustratingly, we have not been given any indication as to when we will receive fresh canisters, and whilst we appreciate these updates will undoubtedly disrupt your business, and we are here to try and help you where possible. We advise all customers to continue to inquire with our office as to when stock is available as we cannot take backorders for any beverage gas.

We can supply a large selection of beer, cider & craft beer in can, keg & cask. Don't hesitate to get in touch with sales@inn-express.com for a range of suitable options for your business.

Please find below key points from the Air Liquide update:

● Given the national importance of CO2 production to various industries, the UK Government stepped in with exceptional support for CF Fertilisers Billingham plant. This support is time-limited and will not be extended beyond 12th October 2021.

● To move to a position where CF Fertilisers will continue production without Government support, the Government expects that CF Fertilisers will have to charge an appropriate market rate for CO2 and that this price for CO2 will be significantly above current prices

● With the backing of short term Government support, CF Industries has restarted the Billingham plant, and some CO2 is available, albeit in limited volumes.

● CF Industries has not restarted the Ince plant, our usual CO2 source for beverage, nor advised a timeline to do so.

● Air Liquide are in regular contact with CF Industries and the Government, and when more information becomes available, we will update you.

Air Liquide is aware that information has been distributed to the wider market by various trade bodies relating to the ongoing negotiations between CF Industries and Industrial Gas suppliers supported by the Government. Air Liquide confirm that part of this negotiation includes a new price structure and contract terms significantly different to those previously in place, resulting in an unavoidable price increase impacting the cost of beverage cylinder filling. Air Liquide is grateful for your ongoing support and patience whilst negotiations are concluded.

Air Liquide remains committed to supporting your business continuity, notwithstanding the supply challenges presently faced; the disruption continues to impact CO2 stock levels. As a result, our beverage supply chain remains severely impacted, operating under Force Majeure.

Air Liquide will continue to review cylinder stock levels and CO2 availability weekly and allocate products across customers during this challenging period to minimise any disruption. Air Liquide will continue to communicate with you proactively about the market position as the situation evolves.

To minimise disruption Inn Express can supply a large selection of all your favourite beers, ciders, soft drinks & craft beer in bottles, cans & casks. Don't hesitate to get in touch with sales@inn-express.com or call 01789 488008 for a range of suitable options for your business.