Italian fizzy drinks could fall flat

CO2 is a byproduct of the ammonia produced by chemical groups for use in the manufacturing of fertilizer, engineering plastics, and diesel exhaust fluid.

Major chemical companies have scaled back their operations due to 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.

According to Alberto Bertone, CEO and chairman of Italian mineral water firm Acqua Sant’Anna, their suppliers have informed them they are struggling to find CO2 because the Ferrara plant operations are curtailed due to high energy costs.

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.

He added that the shortage has become more acute over the past three weeks.

Sometimes we manage to intercept some (CO2) shipments around Europe, but the task is getting increasingly difficult as many industry peers face the same problem.

Spared from the initial impact of shortages, the company said that Sanpellegrino, part of the international consumer goods group Nestle, has also been forced to trim its production.

About 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 said a statement to Reuters.

Sanpellegrino is a familiar name across Europe with its eponymous water and fizzy orange and lemon-flavored drinks.

TEMPORARY SHORTAGES?

Britain suffered shortages of CO2, also used in the meat industry, last autumn after one of its major fertilizer makers cut production.

Italian soft drink industry lobby Assobibe, whose members include global players such as Coca-Cola (NYSE: KO) and PepsiCo (NASDAQ: PEP), paints a picture compounded by a seasonal spike in demand for drinks over the summer months.