2007 - Keg Deposits

Sent: Saturday, August 04, 2007 6:20 PM
Subject: Re: Keg Deposits Continued

Hi Forumites,
The topic of keg deposits continues to come up during my journey. The state of Michigan has passed a new keg deposit law with input from Michigan's craft brewers. The deposit is a mandated $30 statewide. (Please note this is a fully refundable deposit and is in no way price-fixing, and that's why Michigan could do it.)

Also, I've heard a rumor that a large U.S. brewery will institute required quarterly keg inventories with their distributors, and at the end of a year, whatever kegs are not accounted for the distributor will be required to pay for.

Another way of looking at the deposit came up: If breweries don't charge actual or replacement value for their deposits, and breweries don't hold distributors (and thus ultimately the retailer) accountable for the cost of those loaned kegs that are not returned, does that mean that breweries are "helping" distributors/ retailers illegally by "gifting" them more than the 25 cent value, as is required in many state's "trinkets and trash only" laws? IE: It is illegal in Oregon for breweries to give coasters or signs or kegs or anything of real value to the retailer. Breweries have to charge real money for these things.

Just more food for thought.

Cheers, Teri