Logistics News

Brambles completes Kegstar acquisition

Logistics company buys local keg distributor and looks overseas

 

Beer keg distributor Kegstar has been acquired by Brambles after the global supply-chain company upped its stake from 30 to 100 per cent.

Purchasing the remaining shares from Kegstar founder and managing director Adam Trippe-Smith and co-shareholder Shane Bradley, Brambles plans to keep running the distributor as a stand-alone business and expand its reach.

As a result, Trippe-Smith and his staff will remain in their roles to orchestrate Kegstar’s growth beyond Australia and New Zealand.

“I am excited and proud that Brambles has recognised the unique business that my team has created over an extraordinarily short period of time,” he says.

“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.”

Kegstar works in a pool model; supplying, collecting, and cleaning kegs that service a variety of businesses.

The kegs are uniquely identifiable and tracked as they move through the supply chain from the brewery to the venues.

Once empty, an online portal or smartphone app is used to alert Kegstar to collect and clean the kegs, which are then refilled and supplied to a new venue.

For Kegstar the next stage is the establishment of operations in Europe, starting with a specialist keg pooling business to launch in the UK in February.

The company says the UK business will operate in the same fashion as in Australia and New Zealand, while also opening an opportunity for companies to export their beer across the globe in Kegstar kegs.

Facilitating the expansion, Brambles chief financial officer Zlatko Todorcevski says the local growth made it a simple decision to complete the acquisition and look overseas.

“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,” Todorcevski says.

“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.”

In the period since Brambles purchased its initial 30 per cent stake, Kegstar’s keg pool has grown from 15,000 to 50,000 units.

 

 

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