TrenStar Chosen by Coors for Keg Management in the UK

Provider becomes UK's largest keg owner, first to offer brewers asset pooling

Provider becomes UK's largest keg owner, first to offer brewers asset pooling

Denver — May 24, 2004 — TrenStar Inc. said it has acquired and will provide outsourced management of the beer keg fleet of Adolph Coors Co.'s operating subsidiary in the United Kingdom, Coors Brewers Limited (CBL), bringing the percentage of kegs owned and managed by TrenStar in the UK to more than 60 percent.

TrenStar will make its radio frequency identification (RFID)-enabled aluminum and stainless steel keg and cask fleet available to CBL under a 15-year, "per-fill" fee container services agreement. The provider said that by having all containers fitted with RFID tags, it can track location and container use information for better control, visibility and asset utilization.

Greg Cronin, CEO of TrenStar, said, "This is a long-term partnership between Coors and TrenStar, during which we will work hard to deliver to Coors the benefits that outsourced keg management and tracking can bring: reduced container loss, increased asset utilization and improved customer service, which should help drive sales for Coors."

Now the largest keg and cask owner in the UK, TrenStar plans to be the first single provider to pool and source these common, non-competitive assets and activities of multiple brewers for a lower average cost, said Cronin. He said that CBL transferred management of its keg fleet to TrenStar, expecting significant and long-term cost savings through increased supply chain efficiencies and participation in a neutral industry keg pool.

"Supply chain optimization for the entire UK brewing industry becomes possible," said David Adams, TrenStar senior vice president of corporate strategy. "Without industry pooling, each brewer must duplicate the entire supply chain. Brewer participation in an industry asset pool requires a serious shift in the way things are done today, but the rewards of sharing kegs amongst competitors and letting a neutral third party run the operation are enormous."

Cronin said that TrenStar is in negotiations for a similar partnership with major brewers in the United States, Europe and Asia Pacific.