Source: Australian Ministers for Regional Development
The ACCC has decided to oppose MicroStar Logistics LLC’s (MicroStar) proposed acquisition of the assets of Konvoy Holdings Pty Ltd (Receivers and Managers Appointed) (Konvoy), both of which supply keg pooling services to brewers across Australia.
MicroStar, which operates under the name Kegstar in Australia, and Konvoy are the only suppliers of keg pooling services, which enable brewers to rent kegs on a short-term basis to supply alcoholic drinks on tap to licensed venues.
“Our investigation has found that MicroStar acquiring the assets of Konvoy, the only other provider of keg pooling services in Australia, would be likely to substantially lessen competition,” ACCC Commissioner Dr Philip Williams said.
While independent brewers can use their own kegs or leased kegs, the ACCC considers that these options generally serve different purposes and would not be a viable alternative should keg pooling prices increase.
For example, owning kegs or renting them under long-term leases may be suitable when independent brewers are located close to the licensed venues, but these models are unlikely to be viable when servicing venues located further away.
“Without competitors, MicroStar could increase prices above a competitive level and reduce services or quality of service for customers,” Dr Williams said.
“Higher prices for keg pooling would have a significant impact on many independent brewers.”
The ACCC noted that Konvoy is in receivership and that its assets may ultimately be liquidated.
“Our view is that if the proposed acquisition does not proceed, the Konvoy business is likely to continue, whether under new or existing ownership; however, we recognise that liquidation of the assets is also a potential outcome,” Dr Williams said.
“If Konvoy’s assets are liquidated, they would likely remain in the market and be available to new or emerging rivals to MicroStar, or to independent brewers.”
More information can be found on the ACCC public register: MicroStar Logistics, LLC – Konvoy Holdings Pty Limited.
Background
MicroStar is the largest independent keg services company in the United States with operations in the UK, Europe, Australia and New Zealand. It entered the Australian market in 2021 via the acquisition of the Kegstar business from Brambles.
In Australia, Kegstar handles the activities and costs relating to a brewery’s keg use (for example, keg capital costs, reverse logistics, repair and maintenance, and keg management labour) under a pay-per-fill (PPF) model.
Under the PPF model, a brewery will order the number of kegs it requires, these are then delivered to the brewery for them to clean, fill and ship to the brewery’s customers. The brewery provides information on full keg deliveries to Kegstar who then tracks the kegs to the brewery’s customers (i.e. licensed venues), and then Kegstar arranges to collect the empty kegs for further use by its PPF customers. Brewers will pay for this PPF service based on the number of kegs that the brewery refills.
Konvoy operates a keg services business in Australia where it provides keg rentals on a short-term basis, known as “keg pooling”; and it leases kegs on a long-term basis, for a period of 12-60 months, known as “keg leasing”. Under its long-term keg leasing, brewers can lease kegs for their brewery for a monthly fee.
For its keg pooling, Konvoy stores and maintains a fleet of serviced kegs which are delivered to brewers as needed in exchange for a fixed fee. The brewers will then clean, fill and distribute the kegs. Konvoy tracks the kegs and arranges a pickup from the brewer’s customers, usually licensed venues, once they are empty.
In addition to these leasing services, Konvoy offers separate keg maintenance and repair and branding services. It also sells kegs to customers and supplies a tracking technology, known as ‘Katch’, as part of its logistics offering which assists with tracking kegs across the supply chain.
Konvoy entered receivership and administration on 11 March 2025. The Receivers determined that a sales process for Konvoy’s assets would provide the best return to creditors.