Bike N Brew said:
1. is false. Keg deposits are set by the owners of the kegs... government-set deposits are related to recycling programs for glass bottles and aluminum cans.
2. is true, but some smaller breweries already have jacked up the deposit to individuals...theft is way up due to the skyrocketing price of stainless.
Good article
here
*NOTE before attempting to read: this became a long post very quickly, but i looked at real figures and (what i think are) logical estimates.
1. I'll be the first to admit if I can honestly be proven wrong.
Section 445.571(b) in Michigan Legislature states:
'“Beverage container” means an airtight metal, glass, paper, or plastic container, or a container composed of a combination of these materials, which, at the time of sale, contains
1 gallon or less of a beverage.'
I thought I had read in this section that it included up to half barrel containers but I was obviously wrong.
But don't dismiss this as only longnecks and soda cans, it includes everything carbonated in the amount of 1 gallon or less. Yes that includes your growlers too, most brewpubs just don't tell you they collect the 10¢ deposit within the $10 refill.
Read up for Michigan
Here or search for your own state's legislation on deposits (if there is one).
2. I can understand problems with scrappers trying to profit from the metal. I still don't believe that at
maybe 15% of all homebrewers using between 1-3 kegs converted to SS HLT, MLT, and/or keggles actually turns into a major problem for the BMC. Seems like barking up the wrong tree.
Let's look at this objectively. There are a number of estimates on homebrewers in North America but they all seem to be around 1-2 million. So let's say 1.5 for now.
I don't think it's very conservative to say that 15% of homebrewers use a sanke for one reason or another (or just have one sitting around). That's 225,000 sankes. Say about 1/3 of those use 3. That's an additional 74,250 sankes to total 299,250. I can't find prices on new sankes, so since refurbs can be bought @ $100 I'll say $300 for new.
That's $89,775,000. Annually that might seem daunting, but that isn't. Maybe about 10% are accrued each year (at just under 30,000 kegs 'acquired' annually, I it's think a logical estimate) 29,925 Kegs @ $300/ea to total $8,977,500 annual loss.
Now to look at what kind of a hit that would be for BMC. Fiscal Year 2006 figures are as follows:
Anheuser-Busch Companies, Inc.: NET income $1,965.2M (Sale revenue $15,717.1M)
SABMiller plc: NET income $1,141.0M (Sale revenue $15,307.0M)
Molson Coors Brewing Company: NET income $361.0M (Sale revenue $5,845.0M)
Understandably a higher selling company would have more property lost due to product popularity so let's look at that figure. Of the BMC sales realm 42.6% goes to AB, 41.5% goes to SAB Miller, and 15.8% goes to Molson Coors. That would mean $3.8m for AB, $3.7m for SABmiller, and $1.4m for Molson Coors.
Now those still look a little harsh going against the net income, especially for the small amount Molson Coors nets. But this number is factored into the operating costs, so it doesn't reflect the above net numbers.
In the end the hit for these breweries would be:
AB: $3.8m against $13,751.8m operating costs (a 0.00028% shrink)
SAB Miller: $3.7m against $14166.0m operating (a 0.00026% shrink)
Molson Coors: $1.4m against $5,484m operating (a 0.00026% shrink)
WOW! I highly doubt they even notice the hiccup of MAYBE a penny falling on the floor as they whip out their overflowing billfold.
c'mon people, they probably spend more money on hops yearly, or better yet toilet paper or urinal cakes in their facilities than they have shrinkage of kegs. This doesn't even compare to what retailers deal with on employee/shoplifting shrinkage.
Play with the figures as you like. FY-06 figures can be found here for
AB,
SAB,
Mol/Co.
Cheers!
EDIT: forgot to look at bike n brew's link above until after posting. Cut that figure in half since the article says $150 for a new keg. EVEN SMALLER dent for the BMC. No way you can convince me this is a terrible problem for these mega-breweries.