Cold Storage Giant Americold: What You Didn’t Know About Their Global Reach

SUMMARY

• Total revenue Americold Realty Trust for the Q3 2024 was $674.2 million, showing a year-over-year increase of 0.9 percent in revenues.
• Storage capacity: 235 sites across North America, Europe, Asia-Pacific, and South America can hold more than 1.3 billion refrigerated cubic feet.
• Strategic initiatives include operational effectiveness, sustainability, and acquisition-led growth—such as the $1.74 billion acquisition of Agro Merchants.
• It leads competitors with 21% market share in the United States.
• The company has been supported by six-time Olympic gold medal winner Sir Chris Hoy who invested in the company and has been involved in product development.
• Lineage Logistics (18% market share) and United States Cold Storage (regional focus) are major competitors in the US.

Americold Realty Trust: Dominating the Cold Storage Industry with Innovation and Sustainability

Americold's offerings are well placed to take advantage of the expansion of the temperature-controlled logistics market in North America, which is estimated at $60 billion and continues to grow at a compound annual growth rate (CAGR) of 7.8% fuelled by e-commerce growth and an increase in the demand for perishable goods. The largest publicly traded REIT, Americold Realty Trust, with a focus on temperature-controlled logistics, posted revenue growth steadily. Total sales during Q3 2024 stood at $674.2 million, which was an increment of little as 0.9% from the same period in 2023. Consumer demand in food and beverages and improvement in operational efficiency within the AOS resulted in a year-on-year growth of 10.6% in the NOI of the company to $209.2 million.

Americold generates revenue through two primary segments:

• The global warehouse segment, which handles and stores food items, accounts for almost 90% of total income.
• Transportation Segment: Supplying distribution and transportation management services.

Market Position in the US

Americold holds the number one position in the United States with 21% market share for temperature-controlled logistics.

Americold's main competitors are:

1. Lineage Logistics.

• 18% market share

• Recognized for technological advancements, including ASRS, automated systems for storage and retrieval.

• Sustainable focus with energy efficient buildings and renewable energy.

2. USCS United States Cold Storage

• Regional player that can provide high-density storage solutions in a few of its states

• Secure, long-term supply chain partnerships with food and beverage companies

3. NewCold

• Cost savings due to automation and robotics

• Quickly growing as an industry for e-grocery operators

4. VersaCold Logistics Services; Canadian based company with a U.S. presence.

• Overseas freight forwarding and warehousing

5. Agro Merchants Group now a part of Americold

• Former competitor becomes part of Americold's global network

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Americold Global Footprint

Americold has more than 235 facilities across the globe. The company's total storage capacity is 1.3 billion refrigerated cubic feet: By acquiring Agro Merchants in 2021 for $1.74 billion, Americold broadened its clientele and increased its presence in Europe and Latin America.

North America

• 179 facilities in Mexico, Canada, and the United States

• Important locations include New Jersey, Texas, and California.

Europe

• 26 facilities through acquisition of Agro Merchants

• Countries include Portugal, Spain, the Netherlands, and the United Kingdom.

Asia-Pacific

• Australian and New Zealand facilities.

• The major agricultural exports were promoted activities.

South America

• One of the joint ventures with Comfrio Soluções Logísticas is available in Chile and Brazil. 

Americold’s strategic acquisitions, like Cloverleaf Cold Storage and Liberty Freezers, have significantly enhanced its global footprint​

Americold is a temperature-controlled logistics company that focuses on growth through innovation, acquisition, and sustainability programs. Although there has been stiff competition from firms such as Lineage Logistics in this cold chain market, the company still enjoys an edge that has propelled it towards profitability.

Americold Subsidiaries

Agro Merchant Group

• Paid $1.74 billion to acquire in 2021.
• Expanded Americold's footprint across South America and Europe.
• Focuses on fresh produce and foodservice logistics in running 43 locations around the world.

Cloverleaf Cold Storage

• In 2019, it was acquired by Americold for $1.24 billion.
• The operations in the US were reinforced, especially in the Midwest.

Liberty freezers

• Offers frozen storage services in Canada.

Hall's Warehouse Corporation

• Regional supplier to the Northeastern US which specializes in food-grade storage.

Zero Mountain Cold Storage

• Frozen commodities logistics in the US South

Americold will continue the integration of the global cold storage business that is fragmented. Programs include a focus on developing markets in Asia and South America and increasing its automated storage capabilities. Americold has a good position to maintain dominance in the cold storage logistics market in the United States, which is going to grow at a compound annual growth rate (CAGR) of 7.8%. The strong global presence of Americold provides effective and sustainable cold chain solutions across the globe, while the subsidiary integration supports the firm's sustainability.

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