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How many kegs to puchase???

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  • How many kegs to puchase???

    I am interested in purchasing kegs and leaving my rental pool for kegs. I am producing about 3500-4000 bbls with decent growth. I have a good idea of how many 1/6 to purchase but I would like to get some input on how many kegs other breweries have for producing roughly the same amount of product. Most of the kegs would be for distribution a few would be for the brewpub we have but most of the beer that goes through the pub is in serving tanks. Another note is we would prefer to use 50L but if you are using 1/2 barrels I can do the math. Thank you in advance.

  • #2
    Originally posted by schmogger
    I am interested in purchasing kegs and leaving my rental pool for kegs. I am producing about 3500-4000 bbls with decent growth. I have a good idea of how many 1/6 to purchase but I would like to get some input on how many kegs other breweries have for producing roughly the same amount of product. Most of the kegs would be for distribution a few would be for the brewpub we have but most of the beer that goes through the pub is in serving tanks. Another note is we would prefer to use 50L but if you are using 1/2 barrels I can do the math. Thank you in advance.
    The main factor that will affect your decision is your keg turn around time. If you are distributing locally a turn over of 8 times a year is a good estimate. To distribute 4000bbls you would need to fill 8000 1/2BBL kegs a year. If you are rotating each keg in inventory 8 times a year that means you need to own 1000 1/2BBL kegs. Hope this helps.

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    • #3
      Hi There,

      Think about it in terms of your weekly sales and inventory... Something like this:

      2 weeks held in stock at the brewery
      2 weeks out in trade (can be one week, depends on how quickly your accounts turn the product over)
      1 week of empties at the brewery waiting to be filled
      1 week of empties on their way back to you

      So this means you would be looking at owning six kegs for every keg you plan to sell.

      Hope that helps.

      Another thing... don't forget to allow for a certain loss rate as it will help you plan for your forward purchasing. Pick something like 5% a year for a start.

      Cheers,

      Alex

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      • #4
        Generally, safe to figure on 6 kegs per tap.

        That's safe.

        Don't skimp on cooperage. If you are short on capital, take a look at the program from Keg Logistics. I think they are a superior concept to a company like Microstar, and you own the kegs at the end of the term. I was pretty impressed, myself.

        Good luck. I'm about to make a big keg order, myself. We find our cooperage growing at about 1000 to 2500 kegs per year, right now.

        Nat

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        • #5
          Thanks for the input.

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          • #6
            Ratio of Large to Small?

            Thanks to all those who have posted on this thread - It has been helpful to me. To take it one step further, does anyone have any good rules of thumb or experience worth sharing about the ratio of small kegs to large kegs that should be purchased (1/6bbl to 1/2bbl etc.)? A greater percentage of smaller kegs seems to offer more flexibility, but larger kegs will be less work and less initial cost/repeated expense. Also, I expect a lot has to do with the market you are serving and the styles you present. I plan to hit the pavement and ask my potential future accounts what their preference is, but would also appreciate some feedback from those with personal experience. Is my train of thought on the right track and what other factors should I be considering?

            Thanks for any help you can provide!!

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            • #7
              For my money, it depends on the beers you plan to sell. If you are going after a price point with lager-styles or session beers, you are going to want a lot of 1/2 bbl kegs. However, if you are going to have several brands and seasonals, I would plan to go heavy on smaller kegs. Generally, profit margins on sixtels are better than their larger cousins, and it's easier to convince a new account to try out a small keg of beer than to spring for a full half barrel of your incredibly hoppy raspberry rauchbier. Also, cooler space is often an issue for funky little accounts where you really want to see your beer. Another consideration is that most accounts will turn a small keg faster, and you'll get it back sooner...which allows you more turns per year on a cheaper keg...which drives your cooperage costs down. And every time they turn a keg, it's an opportunity for your sales team to make contact with your account.

              Personally, if I were going to open my own brewery, I'd go with just 1/6 bbl kegs and just a few 1/2's for events. Yes, they take longer to keg off, but I'd rather shift sixtels all day than halfs (gettin' creaky in the knees) and most people can shift a full sixtel easily...but I've seen big men lose control of bigger kegs on a regular basis. And then, if some accounts were buying large quantities of beer, and wanted half bbls, I could buy them for that account...

              Mind you, your distributor may demand you have larger sizes. In fact, you should get together with your prospective distributor and ask them what sells in categories similar to yours.

              Hope that helps. In most cases, breweries buy a 50/50 split (in quantity of kegs, not total volume) and go with what sells later on.

              Good luck!

              Nat

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              • #8
                Research?

                Does anybody know of any articles or write-ups on this subject? Is there any (extensive or not) research on the subject?

                Thanks,
                -Anthony
                Drake's Brewing
                San Leandro, CA
                www.drinkdrakes.com

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                • #9
                  Originally posted by Natrat View Post
                  Yes, they take longer to keg off, but I'd rather shift sixtels all day than halfs (gettin' creaky in the knees) and most people can shift a full sixtel easily...but I've seen big men lose control of bigger kegs on a regular basis.
                  IIRC, in the EU they don't allow kegs larger than 30L, for exactly that reason.

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                  • #10
                    Sure about that? I've got a load of ex-German 50L's. 'Course that could be why they are here now and not in Germany.

                    BTW 50's are way easier to lift than 1/2bbls, those 20 or so fewer pounds are importantly located! They weigh about 130-35 lbs full instead of 150.
                    Russell Everett
                    Co-Founder / Head Brewer
                    Bainbridge Island Brewing
                    Bainbridge Island, WA

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                    • #11
                      Russell, I'm not sure if there's a specific weight limit, although there is language in the law requiring the employer to reduce the risk from manual lifting as far as is practical, and to use mechanical assistance whenever possible. That involves an assessment of the risks (in monetary terms) then reducing the risk until the point that further reduction costs more (in time/money/effort) than any benefits gained.

                      That's part of why the plastic keg alternatives are more popular in Europe. Like the Petainer: http://www.petainer.com/Large-Contai...-Benefits.aspx

                      "A full 20 litre Petainer Keg weighs only 21 kg, allowing it to be manually handled without breaching European Union regulations. This makes it quick and easy for bar staff to change kegs when new ones need to be brought into use."

                      From talking to a guy starting up a brewery in France, the 30L is the most common size, at least in France, and especially at bars with multiple beers on tap.
                      Last edited by nateo; 03-20-2013, 01:16 PM.

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                      • #12
                        Wouldn't surprise me at all. I had heard that Health and Safety regs in the UK put a big stop to many pubs using kilderkins and whatnot, above firkin size.
                        Russell Everett
                        Co-Founder / Head Brewer
                        Bainbridge Island Brewing
                        Bainbridge Island, WA

                        Comment


                        • #13
                          Originally posted by nateo View Post
                          "A full 20 litre Petainer Keg weighs only 21 kg, allowing it to be manually handled without breaching European Union regulations. This makes it quick and easy for bar staff to change kegs when new ones need to be brought into use."

                          From talking to a guy starting up a brewery in France, the 30L is the most common size, at least in France, and especially at bars with multiple beers on tap.
                          As is usual in brewing business technology, Europe is generally 5 years ahead of the US and 10 ahead of Canada. Flash coolers are often more prominent in the EU due to lack of a cold room anywhere in the building and the 20 & 30L upright is a very convenient size that is easy to handle.

                          The PET keg as a one way package is brilliant in countries that are focused on recycling and minimizing waste. The plastic keg as a washable container I just don't get. No logic whatsoever. The rewashed stainless keg is about to become a dinosaur (IMO) that we continue to lose an outrageous amount of on a yearly basis (20-25%) and is heavy as hell that has to be collected & shipped back.

                          A new contract brewer at our place told us that he has not had a single inquiry about his 50L keg and has sold nothing but 30L talls. Like all of NA, the number of new breweries in Ontario is stunning and dozens more are in the planning stage. Flexibility may make the difference when this boom tails off.

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