Keg Deposit Rip-off

[reboot]

I have been building a kegerator from an chest freezer purchased from Craig’s list and CO2 tank and taps etc from MicroMatic. Just waiting on my Temperature controller, then I will be set to go. My main objective was to cut the cost of beer while getting a taster product as well as being green (throwing away all those cans is so wasteful).

While making phone calls to the local liquor stores to set up my first Keg purchase, I ran into an interesting situation. Every store I called in the West Indianapolis area said I had to return the keg within 10 days to get my $30 deposit back. I told them I had a Kegerator and would need to have the keg for about 30 days or so. Their response was “Well, you will lose your deposit then”

Now just how ridiculous is this? So I guess after my first Keg is gone and I take the Empty Keg Back to the store…and they want to keep the empty keg and charge me another $30 deposit for the new full one. They take you driver License number down when you go to pick the Keg up (So Ive Heard….so they can sue you if you don’t bring the keg back at all.

Any sugresstions?

[cubby_swans]

Originally Posted by reboot

I have been building a kegerator from an chest freezer purchased from Craig’s list and CO2 tank and taps etc from MicroMatic. Just waiting on my Temperature controller, then I will be set to go. My main objective was to cut the cost of beer while getting a taster product as well as being green (throwing away all those cans is so wasteful).

While making phone calls to the local liquor stores to set up my first Keg purchase, I ran into an interesting situation. Every store I called in the West Indianapolis area said I had to return the keg within 10 days to get my $30 deposit back. I told them I had a Kegerator and would need to have the keg for about 30 days or so. Their response was “Well, you will lose your deposit then”

Now just how ridiculous is this? So I guess after my first Keg is gone and I take the Empty Keg Back to the store…and they want to keep the empty keg and charge me another $30 deposit for the new full one. They take you driver License number down when you go to pick the Keg up (So Ive Heard….so they can sue you if you don’t bring the keg back at all.

Any sugresstions?

I think your best bet would be to go to a store and plead your case in person, during a non-busy time, so that they have a moment to listen to you without being rushed. If they realize you will probably be purchasing a keg from them on a monthly basis, i.e. being a regular customer, you're likely to get the time you need. You also want to make sure you're talking to at least a store manager, if not the owner. The place I get my kegs from, they have a sign on their wall that says "no deposit refund after 14 days on kegs", but I'm in there often enough that the guys that work there all know my face, the owner knows my name, and I know his. I've never returned a keg within 14 days and never lost my deposit. I doubt there's any kind of state law mandating this 10 day thing in Indiana.

[bg44]

When you purchase your first keg you just keep it and forfeit the $30. Once you keep it, its yours, meaning you own it. So when go back for keg number two you swap your empty for your next full keg and thats it. You do not continue to pay a $30 keg fee.

[cubby_swans]

Originally Posted by bg44

When you purchase your first keg you just keep it and forfeit the $30. Once you keep it, its yours, meaning you own it. So when go back for keg number two you swap your empty for your next full keg and thats it. You do not continue to pay a $30 keg fee.

Ideally, but he made it sound like he has to pay another deposit and give up the empty or risk being tracked down. I would verify if this is the case, or if you just lose your deposit and swap out the empty for the new one. And you NEVER own it. It belongs to the brewery. If you keep it, it's stealing. Those kegs cost the brewery a LOT more than your $30 deposit. That's the whole reason they do the keg tagging, so they know who bought it if it doesn't get returned.

In my opinion, that would still suck if you lost your initial $30 deposit. What if you want to start shopping somewhere else because you found your beer cheaper, or you want to buy something at store B that you can't get at store A? Indiana has keg registration tags, so I don't think you can take an empty that you bought at store A and swap it out at another store.

[djspray]

I'm in the Lafayette/West Lafayette, IN area (45min north) and none of the liquors stores have any policy resembling that ridiculousness. I had my first keg for over 3 weeks and they could have cared less.

[TAPMAN]

I would contact the wholesaler where they buy it or the brewery itself and tell them what you were told. I seriously doubt that they would risk losing sales due to such a ridiculous policy.

[tjchris3]

i know here in AZ you pay it once and if you keep it they never say a thing. i just take the empty one in and swap them with cash for the full one (no more deposit). i have done it many of times! All i know is by the end of the week no more trash cans with ice, the 2 tap tower kit is in route!

[bg44]

I've bought and returned kegs from different establishments for years and I've always been under the impression that if you do not return your keg you own it. Huhh. I've never had anyone track me down. I have 4 kegs in my basement (different sizes) and I always return the size that I plan to buy.

Geeze Chubby Swans, had no idea i was stealing.

[Zanpa]

Originally Posted by cubby_swans

I think your best bet would be to go to a store and plead your case in person, during a non-busy time, so that they have a moment to listen to you without being rushed. If they realize you will probably be purchasing a keg from them on a monthly basis, i.e. being a regular customer, you're likely to get the time you need. You also want to make sure you're talking to at least a store manager, if not the owner. The place I get my kegs from, they have a sign on their wall that says "no deposit refund after 14 days on kegs", but I'm in there often enough that the guys that work there all know my face, the owner knows my name, and I know his. I've never returned a keg within 14 days and never lost my deposit. I doubt there's any kind of state law mandating this 10 day thing in Indiana.

I think this may be your best option. I have a similar situation here in Okinawa. I think Im the only person in thousands of miles with a kegerator so I ran into problems. I went to the Officers club on base and asked to speak to the food and beverage manager. I explained my intent and pointed out that I would be a repeat customer for a long time and gave him all of my contact information including my First Sargeant's number (big scary boss guy for those of you that may not know) . With a handshake and a friendly smile to the workers when I pick up my full kegs every week, they have made me an exception to policy and my beer flows cold, perfect, and delicious.

[Hendu]

Here in Shreveport, La, at Thrifty Liquor, when I got my first keg, I got enrolled in the keg program where I give them a $30 deposit and just keep swapping out kegs as long as I want and don't have to pay the deposit each time. Kinda nice. I wouldn't purchase from a store that had the deposit good for only a set number of days. That's the beauty of free market(if there are more locations that sell them)

[cubby_swans]

Originally Posted by bg44

I've bought and returned kegs from different establishments for years and I've always been under the impression that if you do not return your keg you own it. Huhh. I've never had anyone track me down. I have 4 kegs in my basement (different sizes) and I always return the size that I plan to buy.

Geeze Chubby Swans, had no idea i was stealing.

As long as you're returning them eventually, you're not stealing them. Many people have kept them, cut the tops off, and turned them into homebrew kettles. Many other people have stolen them and turned them into scrap yards. THAT is stealing. In Missouri, and apparently Indiana, and other states, the breweries have succesfully lobbied for keg tagging, so they know where their kegs are. At least one brewery, Bell's Brewery, quit selling kegged beer in this state because they were losing money on kegs not being returned. Now that Missouri has adopted the keg tagging, they are now selling here again. Kegs cost breweries over $150. Large breweries such as Bud can eat the cost a lot easier than smaller breweries. Smaller breweries can easily be crippled if they start losing kegs at $150 a piece.

Before Missouri adopted the keg tagging, you could return a keg from anywhere to anywhere and swap it out, but with the keg tagging, you have to take it back where you got it. If you don't they have your information on file and the brewery (or distributor maybe?) can come after you for the full cost of the keg.

[reboot]

I took your advise cubby swans. I went to the big Liquor store in speedway in person when they were not busy and spoke with the senior guy. He said they will to do a trading program where I set down the initial deposit of $30 and can “trade” the empty keg when I am ready for a full one. Another good thing about this store is they carry ¼ and ½ Kegs in stock. They have a tremendous business there in speedway so I hope I will not be buying old beer.

I am going to stop in tonight and pick up a pony. The Johnson Controls Temperature controller seems to be working very nice. I have tweaked the controller to get 38 degrees (the temperature dial on the controller seems to be a couple of degrees off…have it set at 36)

The only thing I am nervous about is if the keg will fit into the freezer. The freezer is exactly 16.5 inches. I understand the keg is about 16 1/8 inches. It will be close!.

If anybody is from the Indy area, I had my CO2 tank filled at Indianapolis Welding supply. I exchanged my new Aluminum cylinder for a used one. The used one looks almost new though. Also, the store in Speedway is Liquor Unlimited.

I will update the thread on the 16 ½ squeeze…sure hope it fits. If it does not, I will be cleaning out my kitchen refrigerator!

Reboot

[Zanpa]

Originally Posted by Hendu

Here in Shreveport, La, at Thrifty Liquor, when I got my first keg, I got enrolled in the keg program where I give them a $30 deposit and just keep swapping out kegs as long as I want and don't have to pay the deposit each time. Kinda nice. I wouldn't purchase from a store that had the deposit good for only a set number of days. That's the beauty of free market(if there are more locations that sell them)

where in sleazeport do you live? I used to live in Bossier City and used to frequent ole thrift daily.

[jeffie45]

I live in indy as well.. and I also suggest shopping around..
I found some places will order kegs for you and the price range can be $30 or more per keg.. and I have found most if you tell them you have a kegerator they just file you as such and will put the initial $30 down and swap as you need to. So far most stock Bud,Miller and Coors.. and try to deal with a manager or owner. The normal employee may not be motivated or educated to handle kegerator owners..

[reboot]

I will agree with trying to find competent people to do business with. I stopped by Liquor Unlimited yesterday and they told me all their miller kegs are metal and not the rubberized kind.

I went to pick up the keg of Lite, they took my money for the keg deposit and filled out 10 minutes of Indiana paperwork, and then rolled out the rubberized Miller keg. I must have told them a rubberized keg would not fit into my Kegerator 10 times! So this guy gets on the phone and apparently talks to the beer truck driver and arranges to have one delivered on Friday. They kept my $30 deposit and said to come back on Friday. 10:1 they will not have a standard metal Keg on Friday…and I will have to fight with them to get my keg deposit back. Bunch of loosers.

Does anyone know of a reputable dealer on the West side of indy that can get me Miller in standard non-rubberized keg without a huge hassle?

[Hendu]

Originally Posted by Zanpa

where in sleazeport do you live? I used to live in Bossier City and used to frequent ole thrift daily.

Specifically in Southern Hills. South of Bert Kouns near Kingston road.

Thrify has become my best friend. Although I really miss when they had all the microbrews you could buy singlely(sp) and there was a 'frequent drinker' club where you'd earn free beers after having your card punched so many times. That rocked.

[jeffie45]

Paperwork??? I didnt fill any paperwork for either of my Kegs.. I got a miller rubber coated 1/4 (had to rig it to fit..) and just placed a 1/2 of Sam Adams.. I just tell them I have a kegerator.. and they are like OK... they just wrote down my phone number and name (on the deposit sheet)..
I would find a new store to go to..

[cubby_swans]

Originally Posted by jeffie45

Paperwork??? I didnt fill any paperwork for either of my Kegs.. I got a miller rubber coated 1/4 (had to rig it to fit..) and just placed a 1/2 of Sam Adams.. I just tell them I have a kegerator.. and they are like OK... they just wrote down my phone number and name (on the deposit sheet)..
I would find a new store to go to..

I don't think you read all the posts thouroughly. It's not the store requiring paperwork. It's the STATE. States all have their own liquor laws that vary from state to state. Obviously your state has no such laws, yet. So unless we wanted to drive 6 hours to grab a keg in a neighboring state that doesn't require keg tracking, the paperwork is required at every store. Same thing applies in Illinois and Indiana, and I'm sure there are several others. All the breweries are pushing for this in every state, since they lose money when people don't return kegs.

[jeffie45]

I live in Indiana..
since I am using a kegerator.. they did not require any paperwork.. per the store.. if I was having a party etc.. then they would need to fill out a form.
I think the store that the one guy goes to doesnt know what to do...
I have went to 2 different stores and have not filled out any paperwork for Indiana..

[cubby_swans]

well whatever store you're going to, the employees are clearly idiots. Indiana state law states that if the store fails to tag a keg with and keep the proper paperwork, they can be slapped with a $1000 fine. It doesn't matter how the consumer uses the keg.

[Scott Zuhse]

Cubby_Swans,

The breweries are not pushing this initiative as much as the state legislature would be. The keg tracking paper work is designed to track where the keg is going and who is consuming the beer more so than the deposit process. This system makes it convenient to track the deposit program.

With the costs of raw goods going up on everything, most certainly the brewery would be concerned with losing kegs. If their keg costs are inflated, this will eventually be passed onto the consumers. Therefore, they put pressure on the wholesalers and then the wholesalers put pressure on the retailer resulting in actions that attempt to acquire as much cooperage as possible for return to the brewery to be refilled.

The breweries have the consumer in mind everyday with their lobbying efforts to keep government from hand cuffing the industry.

If there is anyone to blame for high deposit costs and strict return policies that are now in place, put it on the salvage whores who incent thieves to illegally acquire kegs for their gain.