E-Malt.com News article: USA: Disappearing beer kegs costing breweries

Rising scrap metal prices are hitting U.S. breweries where it hurts - right in the beer keg, United Press International reported July 4.

It turns out thieves are selling the stainless steel beer containers to scrap yards for anywhere from $15 to $55. The Beer Institute, a trade group in Washington, says it's grown to a $50 million-a-year problem for the industry, WTVM-TV in Columbus, Ga., reported Tuesday.

Each keg weighs about 30 pounds and about 30,000 kegs are stolen annually, the institute says.

"Our profit in retail is so low, we have to manage that more closely than someone in the restaurant business, where they're charging four to $5 a beer, our profit is 10 percent on kegs, which wouldn't cover a $40 deposit," said Dinnie Jeter, a manager at Cascade Package Store.

Raising the deposit doesn't help because it deters sales.

In Georgia, lawmakers passed legislation making it illegal for scrap metal dealers to buy kegs off the street. Other states are following suit, WVTM reported

"I know this is a busy holiday season, but if anybody has kegs, don't bring them down here, because we can't buy them," said Rick Caldwell, a scrap metal dealer.


04 July, 2007