With scrap metal prices soaring, empty kegs have become a hot commodity for college students to sell.

The price of nickel, for example, which makes up eight percent of a keg, cost about $22 per pound in September, an increase from $6 per pound two years ago.

‘You can get usually $25 to $35 on a keg that is turned in for scrap metal,’ said a Beer Institute spokesman. ‘When the deposit’s only $5 to $10, you can see how people stand to make a profit.’

The opportunity to cash in has allured many people to sell kegs to scrap yards. However, this practice is illegal.

‘There is no legal right to sell the keg to the scrap dealer. So the person trying to sell the keg is breaking the law by bringing it to the scrap dealer,’ said Chuck Carr, vice president of member services, meetings, marketing and communications for the Institute of Scrap Recycling Industries (ISRI).

A customer rents a keg from a retailer by putting down a deposit. Since the keg still belongs to the retailer, the customer does not have the right to sell it. Carr said the scrap recycling industry just recently began to fully understand the ownership of kegs.

‘Just simply being out of compliance with the law is something we don’t want for any of our members,’ Carr said.

Joe Czajak, who is employed by Party Source Beverage Co. in Syracuse, said people even sell kegs by stealing them. This occurs most often on college campuses, where students typically leave kegs outside overnight.

‘The primary reason for the increase is because of the carelessness on the part of students nationwide,’ Czajak said. ‘It would behoove them to be more careful.’

As a result of unreturned kegs, brewers have increased keg deposits. Unreturned kegs now have a replacement cost of more than $130, the Beer Institute spokesman said. The beer industry loses $50 million annually for about 250,000 unreturned kegs, many of which are being sold to scrap metal companies.

Students like junior Adam Hecht say they don’t like the increase.

‘I don’t want to pay $105 extra every time I want to get a keg. Even $75, it sucks,’ the psychology major said.

Efforts have been made to educate scrap recycling companies about the issue of keg theft, especially in the past two years, Carr said. A letter from both the beer industry and ISRI were sent to companies who belong to ISRI.

‘The scrap recycling industry is trying to be a part of the solution,’ Carr said.

The beer industry contacted the scrap recycling industry, explaining the growing problem and possible legal ramifications if scrap yards continued to buy kegs, Carr said. Punishment would then be dictated by state laws, resulting in fines up to jail time.

Additionally, the beer industry is working to create legislation specifically dealing with keg theft. It understands that sometimes people just forget to return kegs.

Hecht said he would advise anyone against trying to steal a keg, given the possible ramifications.

‘I would make a big fool of myself if I took a keg out of a party and I tried to bring it over the crowd,’ he said. ‘You kind of have to be a football player to get away with that kind of thing. It never really crossed my mind to do that.’

Published on November 15, 2007 at 12:00 pm