Trenstar's UK operations in doubt
Trenstar UK, the country's leading beer keg and cask owner, said it would operate normally for the foreseeable future despite launching a restructuring programme which could shutter of large parts of its operation in a matter of months.
Stuart Facey, Trenstar UK's managing director, said the restructuring exercise would take "several months", during which time it was "business as usual" with Trenstar's clients, which currently include Carlsberg and Scottish & Newcastle (S&N).
Facey said the decision to review the business and implement "some closures" had been triggered by a series of factors, including mounting container losses and a recent decision by brewer and former Trenstar client Coors to buy back its kegs from the company.
Facey admitted that "parting waves with Coors has had a significant impact on our business, but our restructuring plans have not impeded our ability to operate".
However Carlsberg is also understood to be considering buying back its kegs, a decision that could have far-reaching consequences for Trenstar.
Thepublican.com also understands members of staff at Trenstar UK's offices in Beverley, near Kingston-upon-Hull, were notified of a decision to close the business on April 25, although Facey said he was not prepared to comment on the level of likely closures that could result from the review, nor was he prepared to put a number on potential job losses.
Trenstar's problems were meanwhile being exacerbated by the rising losses of kegs, he said, mainly due to theft as the scrap value of the stainless steel containers rose.
"Container losses are reaching unacceptable levels, tens of millions pounds annually, and the [brewing] industry is aware of this problem," he said.
A spokesman for S&N said the brewer planned to work with Trenstar "for the foreseeable future", although he admitted it was in talks with the company's management about a range of issues going forward.
Denise Garcia, vice president marketing for Trenstar in the US, told thepublican.com that it "expects the UK operation to go on" and that the restructuring was part of the recovery process prompted by the loss of the Coors contract.
