We write for both the Industry as well as for its fans here at AmericanCraftBeer.com. And we try to cover the biz in a way that’s entertaining without getting too geekish. Sure it’s easier to write about beer festivals, new breweries and craft beers, rather than to delve into SKU concerns. But sometimes, there are less obvious industry issues that warrant discussion – especially when they affect all of us…And “disappearing kegs” is one of those issues.

You don’t have to work in the industry to understand the importance of kegs to the biz. They’re one of the most significant ways that beer reaches the consumer. They are also packaging that costs money to produce and adds cost to the brewer’s bottom line. Kegs aren’t cheap but unlike bottles and cans, they can be reused…as long as they get returned to the brewers who actually own them – and as long as they don’t disappear.

Most craft breweries are considered small businesses and as with many small start-ups, money can be tight and profit margins even tighter. So having to purchase new kegs, to replenish stock that the breweries are depending on, hurts…It’s an expenditure that these businesses hadn’t planned for. Lost kegs cost breweries money that goes up against their bottom line and those costs can filter down to the craft beer consumer.

The Brewers Association refers to lost kegs as an “unintended tax on beer,” and they estimate that each keg that never gets returned (either by mistake or because they were stolen) can cost the brewery anywhere from 46 cents to $1.37… and that can add up to several millions of dollars in losses!

The trade group’s data points to the further impact of disappearing kegs:

Assuming 2011 craft beer sales of 11.5 million barrels, that is a total direct capital charge to craft brewers of $5.3 million and $15.8 million annually. Lost kegs act as an enormous additional and unintended tax on beer, ultimately having a direct impact on job growth and profit reduction for brewers, wholesalers and retailers.”

In an effort to remedy this industry-wide problem, the Brewers Association has launched KegReturn.com, a site that provides tools to help consumers, homebrewers, retailers, wholesalers, brewers and scrap yards redirect kegs back to the breweries that own them.

“Understanding the issue at hand is a vital part of finding a solution,” said Ken Grossman of Sierra Nevada Brewing Company and BA Technical Committee chair. “The online resource at KegReturn.com allows people to contact the brewery or their local distributor to return kegs back to the brewery to be filled again with beer. We call on beer lovers and people in the trade to help reunite kegs with their owners.”

American Craft Beer.com applauds the Brewers Association’s initiative in addressing this important and costly issue. KegReturn.com is a much needed resource and one that we’re hoping will help stem this growing problem.