Carbon dioxide bidding war to break out as two factories turn taps back on

A carbon dioxide bidding war is expected to break out between the meat, fizzy drinks, beer and packaging industries in the scramble to get hold of supplies after two key factories restarted production.

Two of the UK’S biggest CO2 plants, in Billingham and Wilton, both on Teesside, were back up and running yesterday but the problems are now expected to be with distribution amid widespread shortages across the UK.

Nick Allen, chief executive of the British Meat Processors Association, said: “It could still be a difficult week. There are only so many lorries in the country that can move it around.

“There will be a battle between the beer, meat and drinks industries. It could end up coming down to who’s prepared to pay the most. I would be amazed if it doesn’t turn into a bidding war. The distributors will be fighting to get hold of it and then they will have to prioritise their own clients, many of whom are offering huge sums to get their hands on the stuff.”

He said it would still take around 48 hours for the plants to turn the liquid CO2 into food-grade gas. The shortage has lasted for nearly a fortnight, forcing shops to ration fizzy drinks, Warburtons to stop making crumpets, bars to run out of beer and a suspension of operations at abattoirs, which use CO2 to stun animals before they are slaughtered.

Desperate pub landlords, fearful of running dry during the England World Cup games, have been prepared to drive hundreds of miles for a prized canister, at any price.

Mark O’neill, of The Beer and Gas Man, which provides CO2 to around 750 customers in the West Midlands, said some were prepared to drive to Leicester from Brighton or Liverpool and pay five times the usual price for single cylinders.

The Government held an emergency meeting of its Food Chain Emergency Liaison Group yesterday, which involved various suppliers and trade associations.

A Food and Drink Federation spokeswoman said that despite the developments, they expected to see an ongoing impact on the choice of food and drink products available to consumers.