Concerns about a shortage of kegs in New Zealand have been averted after Kegstar concluded negotiations to purchase their financially-stricken rival Konvoy Kegs.
The two companies controlled the keg rental market in New Zealand and Australia until Konvoy went into receivership earlier this year.
Kegstar, which is owned by global business Microstar, still needs to gain approval from the Commerce Commission here and its Australian counterpart, ACCC.
In a statement, Kegstar said:
“We are reaching out … to inform you that negotiations around the sale of Konvoy have concluded, and that Microstar/Kegstar have been successful with their bid. As we’ve stated since the start of this process, our intention of this proposed acquisition is to build density within the market, so that we can become an efficient and sustainable supplier, and ensure keg pooling is an option for all brewers into the future.
“Supporting the ANZ craft industry is in our heritage, and we are always aware that brewers have choices and that keg ownership or leasing remains a viable and important option to the industry. Whilst the bid has been accepted, the transaction is conditional on a decision from the ACCC and NZCC, following their public inquiry and reviews.
“Whilst the ACCC and NZCC conduct their inquiries, it is business as usual for Kegstar. Our focus has always been ensuring kegs are available to brewers when they need them, so they can continue to get their products into the market, and this will not change. To support brewers and ensure we continue to achieve this goal, we can also announce that we have additional kegs getting on the water very shortly and landing in [Australia and New Zealand] over the coming months.
“For those brewers that we do not currently service, our goal is to earn your trust and support you through any transition period, with a focus on continuity of supply. We will continue to provide clarity to the market as and when we can.”
With Konvoy’s future in the balance since March, there were concerns in New Zealand that there might not be enough kegs to supply the market.
Breweries traditionally owned their own kegs, but it was always tough to keep tabs on them, so keg rental business such as Kegstar and Konvoy offer an alternative solution, with kegs pooled and distributed as required.