The carbon dixoide shortage is coming for beer and cider, with brewers saying high prices and limited supply could force some to shut up shop.

The CO2 price has gone up 500 per cent since July, says Good George co-founder and head brewer Brian Watson, and shortages are severely affecting 'pretty much all brewers in New Zealand”.

The Brewers Guild predicts price rises will push some small-to-medium sized businesses out of the industry, and also hurt bars.

Hamilton-based Good George has already burned the midnight oil to make up for lost production days and Watson said, if there's no CO2 supply, the business will be at risk.

'Our customers will not be able to get our products and our 50 staff may have to be made redundant.”

The only place in New Zealand producing CO2 is the Todd Energy plant at Kapuni in Taranaki, and it has been shut for three weeks for safety reasons, with no reopening date set yet.

And BOC New Zealand, the biggest supplier of the bottled gas, says it's rationing and prioritising critical medical, safety and water customers.

Watson, who is also the deputy chairperson of NZ Brewers Guild, says every BOC customer last week received a new contract with the latest price rise – and no guarantee of supply.

'Pretty much all brewers in New Zealand will be severely affected by this. We need Kapuni up and running as soon as possible.

'No one is saying when it's going to get back on track.”

Some of Watson's friends in the industry had gone weeks without making beer, he said.

'We have lost days without production but we managed to make it up as soon as we got the supply. This means we are working our staff overtime. We are trying to keep on track because of CO2 shortage.

'It is a crisis.”

Good George has a nitrogen generator and is replacing about 10 per cent of the CO2, says Watson.

Good George co-founder Brian Watson, right, says the CO2 price has leapt 500% since July. He's pictured with fellow co-founder Darrel Hadley.

Having a carbon dioxide recovery system is next to impossible for most brewers because of the price, and Watson says it will be 'awesome” if the Government could help.

'They are $200,000 plus for each system. For a small brewery, that's crazy money.”

Watson reckons this is the last nail in the coffin for hospitality, especially pubs that survive on beer sales.

Brewers Guild executive director Melanie Kees says the increase in CO2 prices is unsustainable, pushing a lot of small-to-medium sized businesses to potentially shut their doors.

'The reality is a lot of them have already been working with shortages of CO2 since Covid-19 and the closure of Marsden Point plant, so it's been tough for them already to work in full capacity leading up to summer, the busiest time of the year.

'And now for this to happen, right in the middle of their prime production time, is really serious... it is absolutely the worst time this could happen to them.

'We are aware that CO2 is needed in the healthcare sector, for water and safety, and obviously that needs to take priority. It is not just about beer, it is about small businesses potentially shutting up shop.”

There will be a ripple effect – for example to suppliers of equipment and hops - Kees said, but she expects the biggest knock-on impact to be on hospitality.

'Hospitality industry is dealing with staff shortages now, they will soon be dealing with beer shortages too.

'They cannot pour beer at bars without CO2.”

In a statement to Stuff, BOC says it's prioritising supply of CO2 to critical medical, safety and water customers. Rationing is in place and allocations will be reviewed regularly.

BOC is 'working collaboratively” to manage the supply situation, including with extra shipments of CO2 from overseas.

'CO2 is used across various industries, including medical, utilities, food production and processing, and industrial applications.”

-Avina Vidyadharan/Stuff.