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American Keg has been in the news a lot lately.  What is the problem?

We have been working for the last two years expanding our production, increasing our efficiency and quality controls, and in general investing serval million dollars for a profitable future based on a larger production volume of American kegs.  We planned on increasing production to the point where we can make a thin profit per keg based on this larger production and greater efficiency – plus the fact that our patriotic customers will pay a bit more for a keg made in American by a customer-focused company.

We were making great progress on this until the fourth quarter of 2017, when our domestic steel producers started increasing their prices substantially.  These price increases are directly related to steel tariffs – the anticipation, announcement, and imposition.  These tariffs cause confusion and shortage in the supply stream, as importers stop incoming shipments to the US, and the resulting shortage causes price increases.

Note that we ONLY use domestic steel, and that is all we will EVER use.  The steel mills are just following the market – and we buy a tiny, tiny amount of their steel and cannot affect the price of the steel we use.

This is a particular problem for American Keg.  Kegs coming from overseas – primarily China and Germany – have never been subject to tariffs, and at the moment they are still being imported without ANY tariffs.  This has widened the gap between what we charge to cover our costs, and what the importers charge for a keg.  This gap has caused us to lose sales, and we’ve had to cut our production staff by 30%.

 

But your competitors use imported steel – won’t their cost go up?

The proposed tariffs don’t work that way – they will only be on raw steel.  Currently, there are NO tariffs imposed on import kegs.

 

What is the solution?

At this point, the answer is pretty simple.  If the American Government places a tariff on the finished kegs we import from overseas that is equivalent to the already-announced raw steel tariff, we’ll be fine.  This levels the playing field. Otherwise, we are in deep trouble.

 

What can I do?

Well – if you produce beer, wine, or cider buy our kegs.  If you drink beer ask your favorite breweries to use American Kegs. 

 

How many American Kegs can you make?

Currently, only 300 or so a day, though we have aggressive plans to increase production to meet the demand for American-made kegs.

 

Are you the only American Keg Manufacturer?  I see lots of sites on the web that seem to sell Kegs from US locations.

If they are not from American Keg, they are imported.  You can check, or you can look for telltale signs like a reference to “our ISO 9000 factory” with no indication WHERE that factory is.  It is very likely in China.  American-made Kegs are ONLY available from American Keg.

 

Why were no kegs manufactured in the US between 2005 and 2015?  How hard can it be?

The last US manufacturer of kegs was Spartanburg Stainless Products who sold the keg product line, in 2006, to European manufacturer who shut down the US production and expanded their export business..  The answer on how hard is - well - pretty hard and expensive.  There are two basic reasons for this:

  1. You have to be competitive with companies that have had years to develop smooth running, efficient, and low-cost methods to produce high quality kegs in quantity.
  2. There are no experienced US resources to draw from – equipment and experience has to be adapted, imported, or both.

We’re working on it, however, and have had some pretty significant success in the last year.

 

I’m happy with my Keg importer – they say they import kegs that American Keg uses.  Why should I buy from you?

                We certainly don’t want to come between you and your current supplier if they do better that we can.  But, consider:

  1. When you buy from American Keg, even if you buy an import keg while we ramp up American Keg production, you are supporting an American Manufacturer, not an importer.
  2. Since 2007, we have been importing kegs. If you cannot afford to buy American made kegs, we offer Chinese imports and we have always offered a 2-year warranty with the imports. In addition, we select only the best manufacturers and regularly visit to manufacturing sites to ensure the best quality.

Working with American Keg Company

How do I get a quote?

Fill out a web form, send us an This email address is being protected from spambots. You need JavaScript enabled to view it., call (484) 524-8251 – whatever is easiest for you.  We’re as anxious to serve you as we are to continue and grow Keg manufacturing to the US.

 

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