Brambles acquire 100% of Kegstarby Press Release on 2015-12-01 03:10:38
KEGSTAR COMMENCES RAPID GLOBAL EXPANSION
Kegstar is pleased to announce today that the global supply-chain logistics company Brambles has moved from 30% to 100% ownership of Kegstar Holdings Pty Limited, after acquiring the shareholdings associated with Founder and Managing Director Adam Trippe-Smith and co-shareholder Shane Bradley. As a result, Kegstar will be accelerating its plans to expand into new territories beyond Australia and New Zealand.
Under Brambles’ ownership, Kegstar will continue to operate as a stand-alone business, with Adam Trippe-Smith retaining his position as Managing Director and the entire Kegstar team also remaining in place to continue the execution of the Company’s business plan.
The first stage of Kegstar’s global expansion will be the establishment of its European operations. Kegstar will launch a specialist keg pooling business in the UK in February 2016 and then expand operations into mainland Europe. Building on success in Australia and New Zealand, the European business will also feature Kegstar’s innovative keg-tracking platform and the unique pay-per-fill offering, whereby Kegstar collects the empty kegs from the licensed venue. The addition of Kegstar operations in Europe also opens up the opportunity for customers in Australia and New Zealand to export their beer to the UK in Kegstar kegs and UK brewers to export their beer to Australia and New Zealand in Kegstar kegs.
Kegstar Founder and Managing Director Adam Trippe-Smith commented: “I am excited and proud that Brambles has recognised the unique business that my team has created over an extraordinarily short period of time. We now look forward to tapping into the global asset pooling knowledge and network of the entire Brambles group to take Kegstar to the next level. It’s now game on!”
Brambles Chief Financial Officer Zlatko Todorcevski added: “When Brambles first invested in Kegstar in March 2014, we saw it as an exciting and innovative business with a great team that was gaining traction in the fast-growing craft beer and cider market. We didn’t have a presence in keg pooling, but definitely identified the potential to add value, not just through financial investment, but also with Brambles’ supply-chain expertise and global network. Having seen what the Kegstar team has achieved since then, it was an easy decision to take the step of acquiring the company. Brambles will fully support Adam and his team as they take Kegstar forward.”
Kegstar first launched in December 2012 with 880 kegs, one person and one customer. Brambles acquired a 30% stake in March 2014, and since then Kegstar has grown its keg pool from 15,000 to now in excess of 50,000 stainless steel kegs across three countries (Australia, New Zealand and the UK). The Company now employs thirteen people and has annualised sales revenue of approximately A$3 million.
Kegstar works with 140 brewers, 75 distribution partners and 1,500 venues across Australia and New Zealand. As part of its keg tracking solution, Kegstar kegs have been scanned over 500,000 times.
Kegstar is an asset pooling business specialising in stainless steel kegs used to transport beverages, principally beer and cider. Under its pooling model, Kegstar owns and manages, on behalf of its customers, a growing pool of more than 50,000 kegs. Kegstar collects the empty kegs from the venue and then redeploys them to other customers, who participate in the Kegstar pool. Each Kegstar keg is uniquely identified and tracked when the keg moves through the supply chain. Kegstar is part of the global supply-chain logistics company Brambles Limited and currently operates in Australia and New Zealand. Kegstar will commence operations in the United Kingdom in February 2016, followed by mainland Europe. www.kegstar.com
Brambles Limited (ASX:BXB) is a supply-chain logistics company operating primarily through the CHEP and IFCO brands. Brambles enhances performance for customers by helping them transport goods through their supply chains more efficiently, sustainably and safely. The Group's primary activity is the provision of reusable unit-load equipment such as pallets, crates and containers for shared use by multiple participants throughout the supply chain, under a model known as "pooling". Brambles primarily serves customers in the fast-moving consumer goods (e.g. dry food, grocery, and health and personal care), fresh produce, beverage, retail and general manufacturing industries, counting many of the world's best-known brands among its customers. The Group also operates specialist container logistics businesses serving the automotive, aerospace and oil and gas sectors. Brambles has its headquarters in Sydney, Australia, but operates in more than 60 countries, with its largest operations in North America and Western Europe. Brambles employs more than 14,000 people and owns more than 500 million pallets, crates and containers through a network of approximately 850 service centres.
For further information, please visit www.brambles.com.