🧊 Lineage Logistics reported to be pursuing $30B-plus IPO

Welcome back to Cube Cold News where we cover the latest developments in the cold chain industry and temperature-controlled logistics.

In today’s edition:

• Lineage Logistics reported to be pursuing $30B-plus IPO

• raising the temperature of frozen food by 3 degrees could see major cut in carbon emissions

• Groupe Robert opens one of the most advanced cold stores in North America

• The Cold Chain Climate Summit and Sustainability Awards will take place in March 2024

News

Lineage Logistics reported to be pursuing $30B-plus IPO Lineage Logistics, a leading provider of temperature-controlled storage and logistics services, is reportedly planning an initial public offering (IPO) that could value the company at over $30B.

• The IPO is expected to take place as early as the first half of 2024.

• Morgan Stanley and Goldman Sachs are believed to be the lead underwriters for the IPO.

• Lineage Logistics, backed by private equity firm Bay Grove, is the largest cold storage real estate investment trust in the world.

• The company operates more than 400 facilities and 2.5B cubic feet of space across North America, Europe, and the Asia-Pacific region.

• To date, Lineage has raised more than $13B of capital, including two rounds totaling more than $2.4B last year and $6.7B in equity since the beginning of 2020 (source: PitchBook). (link)

Raising the temperature of frozen food by 3 degrees could see major cut in carbon emissions Recent research suggests that raising the standard temperature of most frozen foods by just three degrees, from -18°C to -15°C, could significantly reduce carbon emissions and energy consumption without compromising food safety or quality.

• The study, conducted by researchers from the International Institute of Refrigeration in Paris, France, and the UK Universities of Birmingham and London South Bank, found that this small change could cut 17.7 million tonnes of CO2 emissions per year, equivalent to taking 3.8 million cars off the road.

• The research also identified potential energy savings of approximately 25 terawatt-hours per year, equivalent to 8.63% of the UK's annual energy consumption.

• In addition to environmental benefits, the move could also bring economic advantages by reducing supply chain costs by at least 5% and in some areas by up to 12%.

• The research was supported by global logistics firm DP World, which has set up an industry-wide coalition named "Join the Move to -15°C" to explore the feasibility of this change.

• The current standard of -18°C for storing and transporting frozen food was first implemented in 1930 and has not been updated since.

• The researchers argue that these standards are long overdue for revision, especially considering the urgent need to address climate change and energy consumption.

• It's worth noting that a similar study conducted by Nomad Foods in August 2023 found that increasing the storage temperature of frozen food by 3°C could reduce freezer energy use by 10% without affecting the quality or safety of products. (link)

Groupe Robert opens cold store in Montreal Groupe Robert, a leading logistics company based in Canada, has recently opened an automated cold storage facility in Montreal, Quebec.

• Located near Highway 30, the new facility is 131 feet high and has a storage capacity for 60,000 pallets—30,000 for fresh products and 30,000 for frozen products.

• The project required an investment of over $200 million and was supported by contributions from the province's government, Investissement Québec, and other partners.

• The facility consolidates the supply chain in Quebec and ensures reliable distribution of fresh products throughout the province.

• The new cold store is the first automated warehouse for fresh and frozen food products in Quebec and one of the most advanced in North America.

• It complements Robert's existing Boucherville agri-food complex, allowing them to offer augmented solutions for refrigerated and frozen goods. (link)

Events

The Cold Chain Climate Summit and Sustainability Awards is set to take place on March 13, 2024, at The Slate, University of Warwick.

• Building on the success of the inaugural event, this summit will focus on two key themes: 'Climate resilience and the cold chain' and 'Reviewing temperature setpoints to save energy across the cold chain.'

• The event will feature exhibitions, keynote speeches, and panel discussions on innovative cold storage and distribution technologies.

• The Sustainability Awards will recognize businesses, facilities, and individuals demonstrating leadership in creating a lower emission cold chain.

• Sponsorship and exhibition opportunities are available, offering a platform to showcase sustainability solutions within the UK cold chain community.

• To find out more and book click here.

Other headlines 

Walmart chooses Swisslog for automation in its Valdosta facility - Cold Chain Federation

Sysco GB announces £15M investment in its Scottish business - British frozen Food Federation

That’s it for today!

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