A shortage of supplies of carbon dioxide from ethanol plants might result in shortages of beer and soda which are considered essentials for many American households.
Ethanol has experienced a significant drop in production due to the decline in demand as a result of the coronavirus pandemic.
Why is there a shortage?
Ethanol is closely related with the nation’s gasoline supply and as the demand for gasoline reduces, so does the production of ethanol. As of right now, the demand for gasoline has decreased by 30% in the United States.
This decrease in ethanol production has affected the sector of the food industry responsible for producing sodas and beers.
“The problem is accelerating. Every day we’re hearing from more of our members about this,” said Pease, chief executive officer of the Brewers Association, who predicts that brewers will have no choice but to start slashing production.
What will be the implications for households for which carbonated drinks are a staple?
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