Kegs an endangered species in Muncie, Ind. (Profit drives move by liquor stores)

AP - Bakersfield Californian ^ | 8/26/05 | AP

[NormsRevenge]

MUNCIE, Ind. (AP) - Beer drinkers in this college town will have to settle for bottles or cans, as more than a dozen liquor stores have quit selling kegs.

The stores are hoping to ditch low profits from kegs, compared with beer sold by the case. Some say they also hope the move will help cut down on alcohol-related violence and accidents.

"The majority of students are very angry because they don't get why we're doing this," said Chris Johnson, manager of Muncie Liquor.

All six of the chain's stores have been no-keg zones since last weekend. At one store, a popular mural featuring a Ball State University Cardinal with a keg and the logo "Keg Headquarters" has been painted over.

Kegs are among the least profitable items a liquor store can sell, said Johnson, who estimated the gross profit on a $49.99 keg at $4.99. From that profit margin comes other costs, including refrigeration and damage caused by the cumbersome containers.

"A keg weighs 165 pounds. That's a lot of weight for my people to handle," said Johnson. "It's tough on our equipment, it's tearing up our coolers, and I no longer see the profitability of it."

But some beer drinkers - particularly those of college age - don't understand why the stores would quit selling a product that is sought-after, profitable or not.

"You tell kids at other schools that you go to Ball State, and now you're going to hear, 'You mean that school where you can't buy a keg?'" senior Aaron Shepard said.

Muncie Liquor isn't alone. Save-On Liquor has quit selling kegs at its six stores in Muncie, and Friendly Package also has joined in.

Kegs are still available, Friendly Package manager Mike Kilgore pointed out. But they may be difficult to find in Delaware County.

Last Saturday, Ball State senior Garen Garrison and his college buddies drove to Anderson to pick up a $76 keg.

[Onelifetogive]

(Profit drives move by liquor stores)

Business selling stuff they can actually make money on......what is this world coming to???

[PAR35]

who estimated the gross profit on a $49.99 keg at $4.99.

drove to Anderson to pick up a $76 keg

So profit on a $76 keg would be $31. It sounds like the stores were not pricing to market. Shoot, they could probably charge a premium to save folks the drive. Say price them at $80 and aim for a $35 per keg profit.

[tophat9000]

Kegs are among the least profitable items a liquor store can sell, said Johnson, who estimated the gross profit on a $49.99 keg at $4.99. From that profit margin comes other costs, including refrigeration and damage caused by the cumbersome containers.

Yes num nuts that that reason people buy in bulk because it cheaper...people that want keag because of there are cheaper will just go somewhere else...

You would have had a better effect raising the price of a keag to the point you had the same profit margin as bottle and cans...

But either way you going to probably loose money... sometime selling more at less is more profitable than selling less at more

The tax's Laffer curve works the same

[tom paine 2]

Colleges are prestigious centers of higher education where young people go to drink.