Breweries depend upon beer gas to create fizzy, tasty beer. Compressed gas of one kind or another is used in the brewing process from start to finish.

But according to some customers of gas supplier Praxair, breweries may be paying more for their compressed gas than they should have to because of extra fees or unexpected price increases charged by Praxair.

How Breweries Use Compressed Gas

Gas plays an important role not only in the fizziness of the drink, but also in the flavor. According to AirCheckLab.com, compressed air systems are used throughout the brewing process. Potential contaminants in compressed air and gas systems can result in unwanted flavors, bad odors, oxidation and even beer spoilage. Any introduction of contaminants along the way can result in a beer that’s not safe for consumers to drink.

Before beer begins to ferment, compressed air delivers increased oxygen to help yeast grow. According to Air-Components.com, pressure produced by compressed air helps beer move through piping and remove any solid matter that remains from the fermentation process. Compressed air is also used to make sure pipe lines remain water-free and help ensure equipment is sanitized.

While carbon dioxide has always been used to introduce the carbonated fizz, nitrogen has become more popular because it produces smaller bubbles and is less acidic than carbon dioxide. The craft beer industry has become particularly fond of nitrogen.

“A typical nitrogenized beer contains about 70 percent nitrogen and 30 percent carbon dioxide,” according to CraftBeer.com.

Taking Issue with Beer Gas Prices

The prices breweries pay for beer gas may be more than they legally should be, if concerns raised by other industrial gas users turn out to be well founded.

A Florida restaurant and hotel have filed a class action lawsuit against NuCO2 LLC, a wholly owned subsidiary of Praxair Inc., which is the largest industrial and medical gas supply company in North America.

Praxair sells and distributes a variety of industrial gasses used by various businesses. Both TownHouse Restaurant of Oviedo Inc. and Estero Bay Hotel Co. allege NuCO2 violated contracts by instituting illegal price increases.

Both TownHouse and Estero buy carbon dioxide and purchase or lease the needed equipment to use the gas from NuCO2 through contracts. According to the class action lawsuit, the contracts are uniform among putative class members because they are all six-year contracts that automatically renew for additional six-year terms. The alleged intent of the contract is to set a fixed monthly price the customer can rely upon paying NuCO2 for products and equipment.

The allegations against the Praxair subsidiary accuse the company of insisting on unsubstantiated and illegal price increases for years. According to the plaintiffs, “NuCO2 has carried out a systematic deceptive scheme to charge its customers more than the agreed amounts. NuCO2 enters into the agreements knowing that it will increase the promised prices without justification.”

The contracts do allow NuCO2 to initiate legal price increases of beer gas under two circumstances. NuCO2 may annually adjust the pricing up to 5 percent or the amount of a specific inflationary index every year on the effective date of the contract. NuCO2 also may initiate a price increase within 15 days of sending the customer a “Price Adjustment Notification.”

NuCO2 is accused of doing neither of its legally binding efforts to increase prices, but instead, automatically increases the prices every year by as much as 30 percent more each month than the agreed-upon contractual amount.

NuCO2 also allegedly adds a fee called a “fuel surcharge/energy surcharge” that the plaintiffs allege has nothing to do with increased fuel costs, but is itself a hidden price increase.

The Beer Gas Lawsuit is Townhouse Restaurant of Oviedo Inc. and Estero Bay Hotel Co. v. NuCO2 LLC, Case No. 2:19-cv-14085-RLR, in the U.S. District Court for the Southern District of Florida, Fort Pierce Division.

This article is not legal advice. It is presented
for informational purposes only.