- Centre for International Business at the University of Leeds
There have been plenty of headlines recently highlighting the current shortage in carbon dioxide (CO) supply and how this will impact food and drink production across Europe. COis used to make drinks fizzy, preserve pre-packed salad, and produce theinstantly recognisable crumpet. But what happens when the supply of COdrops?
Depending on the product in question, COmay be sourced locally, globally, or a mixture of both. If a supplier is unable to provide the COrequired, the manufacturer has to look elsewhere to source it or risks producing a sub-standard product (or no product at all). For the UK the CO2 shortage has been particularly difficult – it relies heavily on local suppliers due to CObeing troublesome and costly to import.
Selling a product that does not meet the consumer’s expectations could have a long-standing negative impact on reputation and profits. This leaves the manufacturers with a difficult decision - to streamline production and continue to manufacture only the most popular products, or, to stop production completely. For small businesses, closure may be the only option.
In this video, Anthony Brown explains the reasons behind the reduced supply of COand the impact the COshortage is having on manufacturing companies, highlighting why an integrated supply chain is so important.
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The views expressed in this article are those of the author and may not reflect the views of Leeds University business school or the University of Leeds.