French brewer Kronenbourg’s rail-centred logistics provision is helping to cushion the impact of rising fuel prices on its operating costs. From its production plant in Obernai, near Strasbourg, the company delivers its bottles and cans of beer throughout France by train as opposed to truck, road-borne freight being directly exposed at present to the hikes in diesel prices due to the hostilities in the Gulf region.
“We make up 450 trains a year, which carry a total of 450,000 pallets,” explained Vincent Petit, logistics director, in an interview with the French media. “In 70% of cases, a beer produced by Kronenbourg and sold in supermarkets has travelled by train.” Empty bottles are also transported by rail wagon before they arrive at production lines to be filled with beer under the Kronenbourg, 1664, Tourtel or Grimbergen brands.
Rail has been at the centre of Kronenbourg’s logistics for almost two decades. It currently works with Hexafret and Captrain, both subsidiaries of Rail Logistics Europe, the structure grouping SNCF’s rail freight interests, as well as with wagon lessor Ermewa. A subsidiary of Danish brewery giant Carlsberg, Kronenbourg has its own 14 kilometre-long rail line which connects to the mainline network, allowing it to run trains to logistics hubs in Paris, Lyon and Angers.
‘Strikes are more impactful’
While transport by train is undoubtedly helping to mitigate the sharp rise in fuel costs to some extent, Kronenbourg still uses road haulage for the final few kilometres of the transport chain to customers, where it, like all manufacturers currently, is facing pressure on prices. Train-based logistics also remains vulnerable to rail-related disruptions: bad weather, cable theft and accidents. “The thing that has the biggest impact on us is when there’s a national strike,” Petit noted, adding that where there are trains, there are also maintenance and servicing costs.