Industry leaders said there are currently no major signs of widespread disruption, but warned prolonged instability could add further pressure to businesses already facing rising costs and tight margins.
The issue follows fresh inflation concerns this week, with trade bodies warning the sector has “no room” left to absorb further increases.
A spokesperson for the British Beer & Pub Association told The Morning Advertiser (MA): “Our domestic CO2 supply chain is vital for our brewers and pubs and something we closely monitor. While we’re not aware of any imminent issues, we remain in close contact with the Government to highlight any concerns and explore solutions about any indications of potential CO2 disruption or shortage.”
CO2 is used across brewing, soft drinks and parts of the food supply chain, making availability a key issue for pubs and suppliers.
Star Pubs managing director Lawson Mountstevens said: “We are monitoring the situation around input costs and supply chain disruptions carefully.
“We are mindful that with the summer months approaching, and a World Cup in the offing, we need our pubs to be in the best position possible and as ever we’re working hard to ensure that they are.
“There are currently no major concerns around significant disruptions as a result of the conflict in Iran.
“However we keep in close contact with our supply chain partners to ensure that any should any disruption come to light, any impacts are kept to an absolute minimum.”
Food inflation risk
Suppliers said availability remains stable for now, but warned costs are beginning to rise.
Bidfood sales and marketing director Tim Adams said: “While we are not experiencing any disruption to our supply chain or seeing any significant issues with product availability at present, given the current volatility in this geopolitical situation, it is too early to determine any potential future implications for supply and availability.”
He added Bidfood remained confident in its supplier network across the UK and international markets and would continue updating customers.
Meanwhile, Sysco GB merchandising director David Cole said: “The conflict in the Middle East is not currently having a major impact on our product availability.
“However, there is growing pressure on product and delivery costs, driven primarily by fuel inflation. This is initially affecting products with longer transit times, and fresh produce, which relies on more frequent deliveries.”
Cole added the longer the conflict continued, the broader the effects were likely to be, with further categories potentially affected by rising fertiliser prices.
‘Hospitality is exposed’
UKH chair Kate Nicholls said: “Hospitality is directly exposed to increases in fuel, food and logistics costs, and any additional supply chain pressures linked to the Iran conflict will inevitably feed through into higher prices for businesses.
“That is deeply concerning for a sector that has faced relentless cost inflation recently, and it is crucial that any further increases are kept to an absolute minimum.”
She added rural hospitality and tourism businesses would be especially exposed to higher heating oil prices.
Admiral Taverns commercial director David Wigham added: “Like many, the pub sector is facing concerns as levels of uncertainty and rising fuel/energy costs impact our supply chains.
“For a wet-led business like ours, the supply of CO2 is another area we are monitoring, as this is also critical to the day-to-day running of pubs.”
With summer trading approaching, operators will be hoping supply chains remain stable and further inflation can be avoided.
For many pub businesses, the bigger concern may be another wave of cost increases rather than outright shortages.
