The Australian Competition and Consumer Commission (ACCC) has announced its decision to oppose MicroStar Logistics LLC’s (MicroStar) proposed acquisition of the assets of Konvoy Holdings Pty Ltd (Receivers and Managers Appointed), citing concerns that the transaction would substantially lessen competition in the Australian market for keg pooling services.
Both MicroStar, which operates under the Kegstar brand in Australia, and Konvoy are the only suppliers of keg pooling services nationally. These services enable brewers to rent kegs on a short-term basis to supply alcoholic beverages 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
According to the ACCC, while independent brewers have the option to use their own kegs or lease them, these alternatives generally serve different operational purposes and are not viable substitutes if keg pooling prices were to rise. For example, owning or leasing kegs long-term may be feasible for brewers serving nearby venues but becomes uneconomical for those distributing to locations further afield.
Dr Williams noted that the loss of competition between MicroStar and Konvoy could result in higher prices and reduced quality of service, with potentially significant consequences for independent brewers that rely heavily on cost-effective keg pooling solutions.
“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 also acknowledged that Konvoy is currently in receivership and that its assets may ultimately be liquidated. However, it concluded that the business is likely to continue under new or existing ownership should the proposed acquisition not proceed.
“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,” Dr Williams explained.
Background
MicroStar Logistics LLC is the largest independent keg services company in the United States, with operations across the UK, Europe, Australia, and New Zealand. It entered the Australian market in 2021 through its acquisition of the Kegstar business from Brambles. In Australia, Kegstar operates under a pay-per-fill (PPF) model, where brewers pay based on the number of kegs they refill. The company handles the logistics, maintenance, and management of kegs, providing a comprehensive keg pooling service.
Konvoy Holdings Pty Ltd, prior to entering receivership on 11 March 2025, operated both short-term keg pooling and long-term keg leasing services. Its offerings included keg maintenance, repair, and branding, as well as the supply of tracking technology known as Katch, which assists brewers in managing their keg fleets.
The receivers managing Konvoy determined that the sale of the company’s assets would deliver the best return to creditors, leading to the proposed acquisition by MicroStar.
