Cooperative Efforts Between Beer and Scrap Recycling Industries Work to Halt Metals Theft

ebec, thieves working in the dead of night mademissing kegs. CITY Beverage was not alone in the
away with sections of roofs, gutters, and wiringsignificant funds we expended to replace the stolen
made of copper from four Quebec City churches. Inkegs. It is an industry-wide problem."
metro Atlanta, Georgia, reports of air conditioningRoger Bushnell, Ferrous Processing &
thefts from a few home and commercial sites areTrading‘s (FPT) Vice President of
cause for concern. Meanwhile, mobile phone baseNon–Ferrous Metals, learned of this concern
station equipment has been destroyed as the resultsoon after it developed. "Because of our relationship
of theft of the copper wire and feedline. Thiswith sister companies CITY Beverage and Kalamazoo
widespread problem of metal theft has had aBeer Distributing, FPT quickly became involved in
significant impact on the recycling industry and otherspreading awareness to our industry. The
businesses whose supplies or equipment have beenwide–ranging portfolio of
deemed valuable by unscrupulous individuals looking tocompanies…allowed us to gain knowledge of the
cash in on the rising price of metal.growing number of keg thefts early on."
In fact, the increased price of stainless steel hasIndustry associations have now joined together to
brought a shared problem for two diverse, andactively deter the illegal practice. In July 2007, the
seemingly unrelated, industries: scrap recyclers andBeer Institute, the Institute of Scrap Recycling
beer distributors. As the scrap value of kegs hasIndustries, Inc., and the Brewers Association issued a
become higher than the deposit, thieves, dishonestjoint letter to recyclers with the simple message:
consumers and, in some cases, retailers, have"Don‘t accept beer kegs at your facility." The
redeemed the metal barrels at scrap recycling yardsletter also provided window stickers warning
instead of returning them to the rightful owners. Inwould–be thieves that beer kegs should be
2007, beer makers say they lost hundreds ofreturned to local beer wholesalers or retailers.
thousands of kegs and millions of dollars as the"If there is no available market, the kegs will be
stainless steel holders of brew are stolen and sold forreturned to the retailer, and ultimately, the
scrap.distributor," noted Bushnell. In Michigan, brewers were
The problem can be twofold as keg-buyingrecently allowed to raise the keg deposit and the
customers opt to forgo their deposits, which canmarket is correcting itself. Illinois legislators have
range from $10 to $30, knowing they can cover thatpassed a bill that becomes law on August 18, 2007
expense, and then some, if they sell to scrap dealers.making it illegal for scrap recyclers to accept kegs.
Given current metal trading prices, a keg could fetch"All kegs are stamped with the owners’ name.
from $15 to $55 or more at scrap yards.Anyone attempting to redeem them will have to
"Beginning in 2005, we started noticing a pronouncedprove ownership," detailed Dowd. "This new law will
loss of kegs during our annual audit byhelp us to get our arms around this problem."
Anheuser-Busch," explained Mike Dowd, ViceSister company FPT is doing its part to stop the
President and General Manager for CITYunwelcome practice. "Our ongoing and historical policy
Beverage-Markham. "Distributors are billed for theis not to accept kegs," Bushnell firmly noted.