TrenStar has announced that it has concluded an agreement with Scottish Courage Limited, part of Scottish & Newcastle plc and one of the largest brewers in Europe, to acquire the beer keg fleet of Scottish Courage (some 1.9 million units) and to provide an ongoing keg management service for the brewer.
TrenStar will make the fleet available to Scottish Courage under a container services agreement for a period of 15 years on a "per fill" fee basis. The fleet acquisition and ancillary equipment of approximately $69.4 million (€76.8 million) was funded by a major U.K. bank.
Alan Doyle, TrenStar's senior vice president of Business Development, says, "The transaction is the first of its size and nature in the U.K. It is one of the largest mobile asset management projects to date and establishes TrenStar as an emerging and significant provider of asset purchasing offered together with technology and management services solutions to the European brewing industry." TrenStar intends to use this transaction as a springboard for the creation of an "industry-wide pool" of beer kegs owned and managed by TrenStar companies and used by U.K. and European brewers to reap the cost benefits of greater efficiencies and economies of scale.
According to TrenStar, negotiations with other brewers in Europe and internationally are at an advanced stage. Greg Cronin, TrenStar's CEO, says: "The decision of Scottish Courage to transact with TrenStar is an important validation of the TrenStar business model of providing mobile container management technology solutions and operational services on a per-use fee basis. TrenStar provides solutions for supply chain execution, automatic data collection, mobile asset management and collaborative logistics integration to asset-intensive industries. Our new operating model represents a significant and efficient improvement on the traditional 'rent per day' business model currently utilised by asset management providers." TrenStar's website can be found at www.trentstar.com