DEVELOPING OPPORTUNITIES IN DRAUGHT

Enhance the economics of keg management by introducing the One-Way-Keg (OWK)

Kegs which do not return from the market for long periods are assets not making a financial return for the business. The high percentage of kegs lost in export and remote markets, very often not identified as lost specifically overseas, are a total loss to the business. When assigning a packaging cost to the product, conventional kegs are at best a variable cost until the keg has been safely returned and is ready for reuse. New »On Tap« markets exist, but the variable cost to supply these markets often makes the option appear unattractive. The OWK allows fast and fixed cost penetration of a new »On Tap« opportunity.

Use of returnable stainless-steel kegs for servicing the export market has a number of disadvantages

• High capital cost of purchasing a keg float
• Substantial expenses in collecting, cleaning and refilling
• Substantial refurbishment costs over time
• Deterioration in appearance over time
• Substantial losses from damage, permanent soiling and no return
• Complexity of handling separate keg floats (30 litre vs 50 litre) for export and domestic markets

... and some constraints:

• High entry cost of purchasing float constrains export opportunities
• Domestic keg size (50 litre) often not appropriate for export markets
• Reluctance to service low volume outlets due to low turnover and cost of re-collection
• Substantial losses incurred particularly when exporting draught beer because of damage to and non-return of steel kegs thereby constraining exports