Keg Deposits?

[chazwicke]

I used to think that the deposit on kegs from Old Dominion was high at $50.00. Last weekend I was in PA picking up a couple of sixtels from a distributor. (Troegs Sunshine Pils and Yards Philly Pale Ale) The distributor charges $30.00 but I had exchanges. On the trip I stopped for lunch at Victory and for grins checked out their keg prices and deposits. Victory now charges $90.00 for keg deposits and when you return the keg they refund $95.00. So you are actually getting a $5.00 discount for the beer. I asked why the deposits were so high and was told that so many were not being returned that they had to do something to guarantee they would come back. They speculated that many were being used by home brewers. I've paid anywhere from $10.00 to $50.00 in the past but $90.00 seems high. I have also heard of places not returning deposits or accepting returned kegs after certain time periods have expired. I’m acquiring a second kegerator for my home this week. My other is at my second home at the beach. Both of the kegerators have dual taps so I’ll be keeping four different brews on tap between them.
That means $$ out for deposits. Does anyone know what a new keg costs the brewers?

[MeridianFC]

I'm actually surprised that most places that "lease" kegs don't ask for a much larger deposit. It seems one should be placing a deposit on the actual cost of the item, which I believe is in the neighborhood of $100 for a 1/2 barrel.

I just went to see if I could get a dollar amount and discovered that Spartanburg Stainless Steel sold off their beverage container division (the only keg maker in the US) to Franke Beverage (Swiss owned) who are moving operations to Louisiana from SC.

[Stodbrew]

Brand new kegs are going for $155.00 these days.

My deposit for kegs is $100. Makes sure I get them back in a timely fashion.

[chazwicke]

Yeah I posted the same question on DC-Beer. They said those who were asking only $10.00 were losing them because scrap metal dealers were paying 18.00.

I don't mind the deposit as long as I know I'll get it back at some point. I usually have a keg to return when I'm getting a new one.

[HarkJohnny]

Originally posted by chazwicke
Yeah I posted the same question on DC-Beer. They said those who were asking only $10.00 were losing them because scrap metal dealers were paying 18.00.

I don't mind the deposit as long as I know I'll get it back at some point. I usually have a keg to retur when I'm getting a new one.

i think in your case that where becoming friendly with a manager would be helpful. explain that you keep a number of kegs on tap and it's not for a frat party!

[chazwicke]

Excellent suggestion.


This topic has generated much discussion on DC-Beer. It seems there is a myriad of reasons why deposits are going up. The price of kegs to breweries is 150.00 or so, many are out in rotation or are not returned, the price of scrap steel is higher than deposits in many areas, and the amount of kegs a brewery has to actually keep in stock to service all of their accounts and several other reasons like most, if not all kegs are now produced overseas. So the bottom line is I guess paying a high deposit for the ability to keep kegs at home is going to continue to be a reality. I'm willing to pay it as long as at some point should I decide not to exchange my keg but to just return it I'd have the deposit returned.

[wortchillergoal]

Here in NY, state government mandates a $75 deposit that is forefited after one month. Also, the kegs are tagged with an ID sticker. The seller must record information as to who is purchasing the keg. Stiff fines can be levied for removal of the ID sticker.This law was enacted to make it more diffcult for young people to have keggers.

One SEnator did not like the law. She said it was unfair to people who have kegerators as it could take more than a month to finish the keg. She said the one month time frame would encourage binge drinking as people would try not to ose their deposit. I can't remember if the time frame has been changed or not.

[chazwicke]

Originally posted by wortchillergoal
Here in NY, state government mandates a $75 deposit that is forefited after one month. Also, the kegs are tagged with an ID sticker. The seller must record information as to who is purchasing the keg. Stiff fines can be levied for removal of the ID sticker.This law was enacted to make it more diffcult for young people to have keggers.

One SEnator did not like the law. She said it was unfair to people who have kegerators as it could take more than a month to finish the keg. She said the one month time frame would encourage binge drinking as people would try not to ose their deposit. I can't remember if the time frame has been changed or not.

I may quote you on this topic on DC-Beer. Interesting that the State mandated the one month turn around. I hope it was changed.

[wortchillergoal]

Originally posted by chazwicke
I may quote you on this topic on DC-Beer. Interesting that the State mandated the one month turn around. I hope it was changed.

Yes you may. If you use Ask.com and type nys keg law, you will get a link to an article from a Utica, home of Saranac, paper.

It was done as I said before, to cut down on underage binge drinking.

I did some more reading. The law was enacted in 2003. In 04, the time frame went to 90 days.

[chazwicke]

Thanks! I'll post it.

[brewmonkey]

Chaz,

New kegs cost upwards of $100 depending on who, what and so on. Obviously a discount is given on multiple purchases. Kegs are generally the single largest investment (collectively of course) a brewer will make.

While some brewers will buy used kegs many will only buy new to ensure they are getting something that will be around for sometime. Buying a used keg only to have the spear go bad will drive the cost up to that of a new keg.

Stolen kegs were a problem for us too and being such a small operation losing a keg or two here and there could cost serious money when needing to replace them all. We finally went to requiring the full cost of the keg as a deposit like some others. Sucks that it needs to be done but 10-15 kegs through the year can be $750 and up wheb it is time to buy new ones. Should the brewer eat this as the cost of doing business?

Sorry for any spelling or punctuation errors. I am using my new Treo to send this.

[chazwicke]

I'm with you on the higher deposits now. I'll never complain again. I have learned a great deal about this on DC-Beer where I also raised the subject. I also learned some shady stuff about a DC liquor store and keg deposits and kegs in general from some guys I met off board. I now understand the shortage of kegs and the need for high deposits. I'd be willing to pay 100.00 as long as I knew at some point I could get it back. Usually I just exchange one keg for the next. But I'll never gripe about it again.