Setting keg deposits and chasing keg returns from bars

A keg in a cellar is cash on loan

A stainless steel keg is one of the largest single packaging costs a brewery has. Every keg sitting empty in a bar's storeroom is an asset you paid for that earns nothing. Kegs that never come back have to be replaced.

Count it. If you own 200 kegs and 40 are sitting empty in bars for more than a month, a fifth of your fleet is idle. That means more kegs to buy as sales grow, or beer you cannot package when you need to. Our guide on keg tracking and losses covers the tracking side in depth.

Set the deposit close to the replacement cost

A deposit only changes behaviour if losing it hurts. Set it close to what it would cost you to replace the keg, including freight and import duty if your kegs are imported. A token deposit tells the bar that a lost keg does not matter much.

Charge the deposit on the invoice as a separate line, not buried in the beer price. Refund it, or credit it against the next order, when the keg comes back in usable condition. Some breweries take a single security deposit per account sized to the number of kegs that account typically holds. Our guide on setting a wholesale keg price covers how the deposit sits next to the price.

Track every keg by number

You cannot chase what you cannot name. Give every keg a unique number, engraved or on a durable tag. Record it on every delivery note and every collection. A spreadsheet works for a small fleet. Barcodes or QR codes scanned with a phone make it faster as the fleet grows.

For each account, the tracker should show which keg numbers are out, when each went out and how long it has been there. That one report tells you who to chase.

Set a return deadline and enforce it

Write the return terms into your supply agreement with each bar. A common approach: empties are returned at the next delivery. Any keg held beyond a set period, say 60 days, is invoiced at the deposit value. Apply the same rule to every account so no bar can claim it is being singled out.

Collect empties at every delivery. Make it part of the driver's routine, with the keg numbers checked against the tracker before the van leaves. A bar that sees you collect every time learns to keep empties ready.

Chase overdue kegs on a fixed rhythm

Every week, pull the list of kegs held past your deadline. Send the bar a short statement listing the keg numbers and dates. If nothing comes back in a week, call. If still nothing, invoice the deposit value as the agreement says.

Treat persistent problems as a credit issue. An account that holds kegs for months often pays late too. Our guide on getting paid on time covers how to tie keg returns into your collections routine.

Protect the kegs in the bar

Kegs disappear in surprising ways: sold for scrap, used by another brewery or left at a venue that closed. Engrave your brewery name on each keg. Ask bars to store empties separately from other suppliers' kegs. When a bar closes or changes owner, go and collect your kegs the same week. Waiting a month often means they are gone.

Inspect returned kegs before refilling. Check spears, seals and valves, then clean thoroughly. A damaged keg that goes back out is a leaking keg and an unhappy bar.

Make the deposit easy to understand

Disputes over deposits usually come from confusion, not bad faith. A bar manager changes, the new one finds a deposit line on old invoices and nobody remembers what it was for. Prevent that with a one page note on your keg terms that goes to every new account and every new manager: deposit per keg, the return deadline, how refunds work and who to call.

Show the keg balance on every invoice and statement: kegs delivered, kegs collected, kegs still held and their deposit value. When the bar can see its own keg position every time it pays, arguments become rare. It also reminds busy managers that the empties in the corner are money they can get back.

Review the fleet every month

Once a month, count kegs in four places: full in the brewery, empty in the brewery, at bars within the deadline and overdue. Track the overdue figure as a share of the fleet. If it creeps up, tighten collections before buying more kegs.

Kegs, deposits and receivables all sit in your working capital. Managing them together is a big part of keeping a growing brewery's cash under control.

Common questions

How much should a keg deposit be?

Close to the keg's replacement cost, including freight and any import duty. A small deposit gives bars little reason to return kegs.

How long should bars be allowed to keep empty kegs?

Set a clear deadline in the supply agreement, such as 60 days. Invoice the deposit value for kegs held beyond it. Apply it to every account.

What is the best way to track kegs?

Give each keg a unique number and record it on every delivery and collection. Barcodes or QR codes speed this up as the fleet grows.