Afternoon Everyone.
I recently ran into an issue here at First State Brewing in which we were going to be short on sixtels for an upcoming keg run. Luckily, we had enough come back in returns from our distribution partner that we could cover the run, and I was able to order more from the manufacturer to cover future runs.
Some back information before my question...
- I used to work for a restaurant & brewery chain that has been in business for over 25 years, so we had data at our fingertips to determine cooperage needs for veteran and new locations. I do not have this data at First State, we've only been in business 3 years, with two new markets being launched in less than 2 years.
- We originally launched with rotational brands only, but in 2023 switched to 3 Core brands, and a bi-weekly Rotational brand launch. Our Core brands are seeing a dynamic growth, while Rotational brands are seeing slow growth. We are also "holding" inventory of Core brands, which take kegs out of rotation for up to a month and a half at a time.
- When I first arrived, we had an abundance of kegs that were collecting dust, which in my mind was losing us money, now we're in a good groove of maybe having a pallet of both halves and sixtels on hand at any given time.
- Our CEO and I sat, ran numbers, and it looks like the difference between renting kegs, which is an 18 month agreement, versus leasing to own is a difference of $0.75 per keg per month. So, we're set on owning versus renting, or doing pay per fill.
My question is, how is everyone calculating cooperage (keg) needs in the current market?
Any help is appreciated.
Thank you.
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Andrew Johnston
Production Brewery Manager
First State Brewing Co
Middletown DE
(302) 893-9005
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