The Petainer keg is on the rise – 60% market share for non-returnable kegs

The Petainer keg was first presented during drinktec 2009. Since then it has had a model career and now holds a 60% share of the worldwide market for non-returnable kegs. One of the main reasons for this legendary success is undoubtedly that KHS and Petainer form a partnership where the two companies excellently complement one another and work together perfectly.  While Petainer specifically concentrates on the container itself, KHS' prime focus is on the plant engineering and thus on the processing of the Petainer kegs at the beverage company. In the following interview Nigel Pritchard, group chief executive for Petainer, Annemieke Hartman-Jemmett, Petainer's group commercial strategy director, and Rainer Deutschmann, the global kegging product account manager at KHS, talk among other things about the concrete benefits the innovative plastic keg gives the beverage industry, in which regions of the world the demand for this light alternative to the steel keg is highest and what ideas they have on its further development. 

More container variants for a variety of beverages

Which beverages is the Petainer keg designed for?

Rainer Deutschmann: Like the classic returnable keg it's primarily designed for beer but can also be used for wine and slightly sparkling, non-alcoholic beverages.

What sizes is it available in?

Nigel Pritchard: In a 15, 20 and 30-liter version, with the 20-liter size making up the lion's share at 60%. 

Reasons for choosing the one-way keg

For decades the beverage industry only used returnable steel kegs and was satisfied with this setup. What vehement reasons are there now for the use of the one-way keg?

Pritchard: The biggest advantage of the one-way keg system is that containers no longer need to be returned to the plant nor large quantities of kegs provided. This not only saves considerable investment costs but also a large amount on shipping, especially with exports. The plastic keg also scores with its low weight. Classic steel kegs weigh between six and seven kilograms, while Petainer kegs holding 15 and 20 liters notch up just 250 grams on the scales, with 30-liter Petainers at around the 400-gram mark. This makes them much easier to handle during transportation and in the hospitality and retail trade. As the packaging is much lighter, about 4,000 liters more beverage can be loaded per truck. This is a plus of 30% – which also cuts fuel costs and the CO2 footprint. The Petainer keg is therefore also an especially sustainable system.

Deutschmann: In addition, a lot of the costs involved when non-returnable kegs are processed at a bottling plant simply don't arise here. For instance, chemicals and usually between ten and 14 liters of water are needed to wash the interior and exterior of a classic steel keg. This media is no longer consumed and keg washing technology can be completely done away with. The same goes for keg tracking systems. Keg repairs and the frequently bemoaned loss of returnable kegs are also no longer the subject of debate and the amount of warehouse space required for storage is also reduced.  If a company decides to produce its Petainer kegs inline and thus integrate the blow molding process into this line, no empty kegs have to be shipped to the company. Just one shipping container can hold over 25,000 preforms. If you produce a million Petainers inline, that also means approximately 900 fewer truck deliveries. Companies are also a lot more flexible, as kegs can always be provided according to demand.

Approx. €10.00 more cost effective per hectoliter

How much do you save as a rule per hectoliter of beverage, expressed in euros and cents, if you use Petainer kegs instead of the steel variety?

Pritchard: We’ve done some calculations here. Taking all influencing factors into account, we come up with a conservative saving of up to €10.00 per hectoliter at a shipping distance of 5,000 kilometers. Of course, in the end it always depends on the particular case in hand. Petainer kegs financially out-perform steel kegs at shorter distances, say 2,500 kilometers, and even at 600 kilometers where keg losses are higher and/or kegs cycles are lower. 

Minimum shelf life of nine months assured

Must customers reckon with a compromise in quality in order to save so much?

Annemieke Hartman-Jemmett: No, quite the opposite, in fact. We used sophisticated barrier technology in our Petainer kegs which provides excellent product protection. The Polyester Plus material we've developed with its active oxygen scavenger prevents oxygen penetrating the product and reduces CO2loss. Pigments in the polyester guard the contents against infiltration of UV light. We guarantee a minimum shelf life of nine months. However, tests have shown that the product quality is still perfect after 12 months. Just recently we did some blind tests with the VLB [eds: Research Institute for Brewing and Malting Technology] on the Petainer keg versus the steel keg. Here, consumers were asked to judge the taste of a brand beer after a six-month storage period. Our testers found that the beer from both containers tasted equally good. 

Everything is recycled

Is the Petainer keg also 100% recyclable?

Pritchard: The material has of course been designed so that it can be fully recycled. Disposal couldn't be easier. Once the pressure has been relieved, empty packs are simply squashed together and collected like any other plastic refuse. 

Countless benefits for the retail and hospitality trades

What do the retail and hospitality trades think of this lightweight?

Hartman-Jemmett: In our experience they're extremely positive about it. This is surely also thanks to the fact that we place great emphasis on providing our customers with advice and don't let their questions go unanswered. Personal talks on site, the provision of informative materials and special training courses are all part of our services to both the beverage industry and their clients. Besides the low weight retailers and hospitality outlets also find it important that the fittings are compatible with standard tapping systems, meaning the containers can therefore be connected up to existing tapping equipment in the same way as classic returnable kegs. The retail and hospitality trades undoubtedly also benefit from the system in that they neither have to store nor return their Petainers and there's no deposit due.

Petainer/KHS cooperation a definite plus

In this context, do you also consider it a definite advantage that together with KHS you're able to provide all-round expertise on container and line technology?

Pritchard: It's this which is one of the great keys to our success. While Petainer's competence lies with the container and its material, KHS' expertise clearly lies with the plant engineering. We feel we're in very good hands with KHS as world leader for keg technology and have probably managed to make the Petainer keg the market leader for one-way PET kegs within such a short space of time thanks to this strong cooperation. 

Deutschmann: Anyone who's interested can decide whether they first want to discuss any queries on the container with Petainer or talk to KHS alone about the possibilities provided by the technical system – or find a solution together with both partners at once.

One of many success stories

You probably have a few success stories to share with us.

Deutschmann: Yes, we have. One good example is Bochkari Brewery in Siberia. The keg has always been their container of choice. For the first time in 2012 they invested in two semiautomatic PETBoy F2 Petainer racking systems alongside their investment in a classic Contikeg system with an output of 800 steel kegs per hour. We provided information on the new system on site together.  The brewery also directly procured a stretch blow molder. The next step is to invest in a fully automatic Petainer kegging line. Bochkari primarily uses the container for long distances. Vadim Petrovich Smagin, the managing director of Bochkari, has personally confirmed on many occasions that our lightweight container is being excellently received by the market. 

Special Petainer technology and processing on existing lines both feasible

While we're talking about the technical setup, if customers opt for the Petainer keg do they always have to invest in a new technical system as well or can they rack their beverages on an existing line and first test market acceptance?

Deutschmann: When the Petainer keg was launched to market, we also introduced technical equipment which was exclusively designed to process the new plastic keg, namely the semiautomatic Innokeg PETBoy racking system, which can fill up to 60 kegs per hour, and the fully automatic Innokeg PETLine, which outputs up to 210 kegs per hour. The industry soon approached us with the request to launch a system to market which could process Petainers on existing keg lines. Petainer then developed what's known as the USD or upside-down keg. These are Petainer kegs which are supplied in sturdy secondary polypropylene packaging and which can be filled on existing lines with the minimum of modification. Another alternative is to use the adapters developed by KHS which can pick up 20 or 30-liter Classic Petainer kegs and run these through an existing machine.

Which modifications are involved here? 

Deutschmann: In order to process USD kegs on a classic keg line we block the washing process and make slight alterations to the racking process. The kegs are otherwise handled on the line like steel kegs. Modification costs are minimal and depend on the size of the system. However, the secondary polypropylene packaging makes the USD keg about 30% more expensive than the Classic Petainer keg. It's thus often treated by the sector as an entry-level solution and seen as a way of initially testing customer acceptance of the new type of packaging. If the container proves popular, companies then usually quickly invest in a dedicated Petainer keg line. 

Technical systems for all capacities

Is an output of 60 Petainer kegs per hour not a bit high for some companies, especially during the initial launch phase?

Deutschmann: So that we can also meet the demand for smaller units, by the end of the year we'll be introducing a system to market which operates with just one racking head and outputs up to 30 kegs an hour. Small craft breweries and wineries in particular want this, who only fill a small percentage of their product into keg packaging. With this system we then cover the entire performance spectrum from 30 to 420 Petainer kegs per hour.

Hartman-Jemmett: For newcomers not yet sure which avenue they should take we're also thinking about keg leasing, a concept we'll soon be finalizing. This enables customers to initially go for the smallest machine – which they can return and replace with a larger line if necessary.

Once in use, always in use

That sounds as though you don't reckon on companies rejecting the Petainer system once they've tested the market.

Hartman-Jemmett: We don't. According to my information, nobody who introduced the system to their plant then stopped racking and marketing this type of packaging.

Pritchard: Our system gives a lot of companies the unique chance of entering the draft market at relatively little cost and effort. Take craft breweries, for example. For these microbreweries it's often quite costly to maintain a separate fleet of kegs and organize the elaborate logistics of returning them. With the new, light packaging, however, small breweries now feel able to explore new sales channels. What's interesting is that our system is also establishing itself in places where a classic keg culture doesn't yet exist. I'm thinking of emerging markets such as Africa here, who have yet to set up a full infrastructure and where beverages often have to be distributed over long distances.  

Focus on Europe, Russia and the USA

Which markets do you think present the greatest opportunities for the Petainer keg?

Pritchard: Our focus is on Europe, Russia and the USA. These countries already have an established keg culture and the chances for our lightweight as an extra alternative are very good. In Russia we're also hoping that the draft beer cult will continue to expand. In the USA we see the greatest opportunities in its craft breweries. At the same time, however, with the help of KHS' global network we're also continuously moving towards new markets.

Hartman-Jemmett: Incidentally, in the USA the Full Sail Brewing Co., voted Craft Brewer of the Year by the trade journalBeverage World , recently opted to use the Petainer keg. 

Trend for wine on tap in the USA

Do you think that the Petainer keg will also continue to be primarily in demand in the beer sector in the future?

Deutschmann: This will most probably remain the case initially. However, lots of breweries are not only using the container for their beer but also for slightly carbonated soft drinks. On the other hand, I'm also seeing a growing acceptance in the wine business. In the USA, for instance, there's a trend for wine on tap in pubs and bars. The Petainer is just right for this!

Individual branding for each Petainer keg

Hartman-Jemmett: What's also popular with our winery customers is that they can brand our packaging as they wish. This gives their kegs an extra individual note and helps to build brands.

Trend towards one-way kegs foreseeable?

Despite the Petainer keg's march of triumph and the many benefits it has the beverage industry still primarily relies on the returnable keg. Do you think this trend will change in the near future?

Deutschmann: The steel keg is a popular container and many breweries have large keg fleets which they want to continue to use. However, I think that many companies will decide to replace their lost kegs with Petainer kegs. Over the course of the next ten years I estimate that one-way kegs will make up about 20% of all kegs worldwide.

Pritchard: I beg to differ here. I think we'll see a clear 50% share of non-returnable kegs in ten to 15 years. Last year we had a growth rate of around 100% with the Petainer keg and this year we're reckoning on a plus of 150%. There are just too many advantages to this system which neither the beverage industry nor retailers and the hospitality trade can ignore.

Many thanks for this interview.