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Keg Credit, Keg Logistics, Keg Craft ???

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  • Keg Credit, Keg Logistics, Keg Craft ???

    While I found a few threads on the subject, I didn't find any answers to the question I really had.
    I am looking specifically at (Keg Credit), but I will take any info you have on either one of these companies.
    I am looking to rent or lease a small volume of kegs for my brewpub on top of the 1/6 barrels I already have. I am a very small 3 barrel nano brewpub and don't want to use the 1/6ths in house. (triple keg cleaning and extra handling)
    With that in mind, I thought I might give Keg Credit a shot using their relatively short term lease (18 months for those not familiar), instead of investing several more thousands of dollars up front on cooperage.
    Any information on this company or any others relating to small volume keg leasing would be appreciated. I understand the costs associated with leasing vs buying, and am not trying to start a debate. I would just like to know if anyone is using them, how the experience has been so far and if the monthly cost vs purchasing outright has been acceptable. I only need like 30 1/2 barrel kegs, (I have a bunch of 1/6ths) and if it came down to it, I could use them in a pinch. I am just trying to increase the breweries efficiency more than anything else and leaving a little money in the bank.
    www.beerontheriver.com

  • #2
    depends..

    It depends a lot on your particular situation. I have my own cooperage but can't keep up and am looking to augment with keg credit until I am big enough to go to MicroStar. I've run the numbers six ways from Sunday regarding lease vs. buy etc. It comes down to one basic issue for me...

    "Pay me now or pay me later"...

    Depending on your financing there are two ways to think about it. If you have a good amount of available capital (which no one ever does) then you may be better off buying them. Then it is a capital expense on the balance sheet you can depreciate etc.

    If you don't have the capital to buy kegs then leasing may seem like a better plan but you have to make sure you have enough monthly income to pay the "extra" bill every month for the lease. Now it's a part of your COGS too.

    In my case I had capital funds to buy my first "load" of kegs. This was good because in the first few months my income was almost nothing and if I had to pay the monthly lease I'd be dead. I just bought my second "load" of kegs but had to scrape money out of the couch cushions to pull it off. Since I have a (slightly) more steady income I am considering leasing my next "load" so that the capital can go towards other equipment....


    It sounds like in your case you only need a few kegs. If I were you (which I am not) for that small an amount I would try to find some used ones to buy. The capital outlay isn't as huge but it's a one time thing and not something you have to keep paying for every month just to end up with nothing in the end.

    Just remember that even with the lease you are paying a deposit up front and at the end of the term you are charged FULL REPLACEMENT cost for any kegs that got "lost" during the lease. I worry about what the bill will be at the end of the lease and whether or not I can afford it at that time. Probably my biggest issue with keg credit is that if I lease kegs for 5 years and then come up a few short when its time to return them I have to pay new cost, not a depreciated cost at that time.

    Don't know if this helps or not...
    Scott LaFollette
    Fifty West Brewing Company
    Cincinnati, Ohio

    Comment


    • #3
      Thanks

      No, I appreciate any insight and as I said, I understand the downside of leasing, especially on such a small order of kegs. My issue is not kegs being lost (knock on wood), as these would only be for the beer I brew and serve in the brewpub, not for distribution.
      You are probably right about the monthly cost vs just buying them outright, but just like most people, I have a budget and am trying to save some up front money.
      I have found some used kegs from time to time, but its usually ones that I don't need (sizes) or they wont sell just a few (as in my case).

      Thank you for your reply, as I definitely need any free advice I can get.
      www.beerontheriver.com

      Comment


      • #4
        if saving up front is more important than the carrying costs per month then leasing may be the way to go for you.

        If these aren't ever leaving your pub you could consider plastic kegs as well. I know people will complain about them from time to time but if you are using them in house I don't think it's that big a deal.

        i also know a guy selling off some 50 L (which may not help you any). He's on here as basement brewer... he's selling single pallet quantities which is almost 30 kegs...
        Scott LaFollette
        Fifty West Brewing Company
        Cincinnati, Ohio

        Comment


        • #5
          A few answers.

          I asked Keg Credit for a sample lease and a quote, I think its a better deal than I had heard previously. There are no minimums, it is a simple lease with a loss or damage clause that basically says if I destroy it, or its stolen, I have to pay around $140.00 per keg lost. it's certainly not twice as much as a new keg and not nearly as bad as I had believed it would be. I cant find any hidden costs or fees, so I think I will give them a try. I will post my results and experiences after I've had them a while. Thanks for replying Yap.
          www.beerontheriver.com

          Comment


          • #6
            Another Option?

            Has anyone compared the leasing from Brewery Finance (www.breweryfinance.com)? I have not contacted them but here is what is on their site:

            - Finance kegs for up to 60 months with a $1 purchase option at the end of the term.
            -100% financing (no money down)
            - Finance new or used kegs

            Comment


            • #7
              Not sure?

              I haven't, to answer your question, but I think I remember that there is a minimum number of kegs to qualify. I only needed a few, and I don't think I'm a large enough user. But, don't take my word for it, I haven't called them to check so your mileage may vary. I know that wasn't any help, I am just bored waiting on the dishwasher to finish up some glasses.
              www.beerontheriver.com

              Comment


              • #8
                Originally posted by v2comp
                I asked Keg Credit for a sample lease and a quote, I think its a better deal than I had heard previously. There are no minimums, it is a simple lease with a loss or damage clause that basically says if I destroy it, or its stolen, I have to pay around $140.00 per keg lost. it's certainly not twice as much as a new keg and not nearly as bad as I had believed it would be. I cant find any hidden costs or fees, so I think I will give them a try. I will post my results and experiences after I've had them a while. Thanks for replying Yap.
                How did you get in touch with them? I have sent two emails with no response, and when I called the number on their website there was a message that the number is unavailable.

                I probably do not want to do business with them given their response time, or lack of responses.

                Aaron

                Comment


                • #9
                  Keg Credit reply

                  Aaron- I'm not quite sure why we haven't received any communication as our website, phone # and emails have been working fine. Please feel free to email me at support@kegcredit.com with your contact and ill personally call you to discuss our program. Sorry!

                  Comment


                  • #10
                    Originally posted by KEG CREDIT
                    Aaron- I'm not quiet sure why we haven't received any communication as our website, phone # and emails have been working fine. Please feel free to email me at support@kegcredit.com with your contact and ill personally call you to discuss our program. Sorry!
                    I sent an email again this morning to the email you provided with the best times to call me.

                    Aaron

                    Comment


                    • #11
                      I use KegCraft and am happy with them. I do the rent to own program, 36 month payoff. I started with 20 kegs, just bought 50 more. More in the future I'm sure.

                      My only complaint is that they don't do auto-draft billing. I have to write a check every month. First world problem, I know.
                      Nat West
                      _____________________
                      nat@reverendnatshardcider.com
                      503-567-2221

                      Comment

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