One of the most compelling cases of RFID usage comes from the British brewing industry. In late May, Trenstar, a Denver-based logistics company, signed a deal with Coors UK, and now has partnerships with the three largest brewing companies in Britain to manage their keg shipments. Previously, the breweries owned their own kegs and managed their shipment and returns---a costly and labor-intensive process. Trenstar bought the kegs from these companies and outfitted each with an RFID tag. The breweries now contract the keg coordination with Trenstar, which provides detailed audit trails of exactly where the kegs are and when they're due back. "The biggest benefit to brewers from RFID is the reduction of asset loss," says David Adams, vice president for corporate strategy at Trenstar. "Breweries lose on average five to six percent of their kegs every year. We've cut that by more than half already."

RFID implementation by the British breweries also had some positive unintended consequences. Because the technology provided an audit trail for each keg, the breweries were able to claim tax credits on the amount of beer left in each keg. Typically, a brewery is taxed on the amount of beer shipped out. With an airtight audit trail now in place, breweries weigh the kegs upon their return and receive tax credits on the bottom swill or, if the keg was defective, the full keg. "Companies save roughly $1 to $12 per keg, depending on how much beer is left in the container," says Thomas Ryan, an analyst with the Aberdeen Group.

"The tax credit alone paid for the early implementations of this system," says Adams.