Bend business serves up kegs
Published 5:00 am Tuesday, October 29, 2013
- Scott Jennrich, left, and Helmut Mees, co-owners
While there’s no shortage of local breweries in Central Oregon, Scott Jennrich and Helmut Mees learned that supplies for those breweries, such as kegs, aren’t as plentiful.
“We knew a bunch of (people who worked at) the breweries in town and kept hearing from them how hard it was to get stuff,” Jennrich wrote in an email. “Kegs were something we could wrap our heads around.”
The duo tested the market, purchasing a cargo-ship container of kegs. Within three weeks, they were sold out. That’s when pair decided to start a keg-selling business, Gopher Kegs, in June 2012.
“In 18 months, we have gone from slinging kegs out of a shipping container to having two warehouses,” Jennrich wrote.
In January, they started leasing 4,000 square feet of warehouse space on S.E. Ninth Street, and in August they opened a warehouse in Salisbury, N.C., to reduce shipping costs and time for East Coast customers.
The kegs are manufactured in Asia and sold throughout the U.S., Canada, Puerto Rico and Panama. During the first year, Gopher Kegs sold about 40,000 kegs, and Jennrich said he expects to sell even more next year. Sizes range from one-sixth to one-half of a barrel and cost between $74 and $114, he said. A barrel equals 31 gallons.
This year, the company has sold kegs to more than 300 breweries, including some in Central Oregon. Jennrich said about 98 percent of Gopher Kegs’ customers are breweries, but the company also sells to wineries, homebrewers and a handful of individuals who use the kegs for other purposes.
“They are beer kegs, but I guess because they are made out of stainless steel, you can put anything you want in them,” he said. “People find ingenious uses for them.”
Overall, he said, Gopher Kegs has exceeded his expectations.
“I think the craft beer industry is in growth mode right now,” he said. “We are kind of in the right spot at the right time. It won’t last forever, but right now we enjoy it.”
Gopher Kegs
What it does: Sells kegs throughout the country and internationally
Pictured: Scott Jennrich, left, and Helmut Mees, co-owners
Where: 149 S.E. Ninth St., Bend
Employees: Three
Phone: 541-508-5218
Website: www.gopherkegs.com
Q: (For Mees) What is your favorite part about owning and operating Gopher Kegs?
A: Our customers are the greatest people. In most cases they are living the dream — making beer for a living. (They are) fun, honest, hard-working people — the type of people you love doing business with And also the type of people you want to have a beer with.
Q: (For Jennrich) What has been the biggest challenge with your company?
A: (Conducting) international business, shipping, customs, duties — were all new to us. The kegs are manufactured in Asia. But parts come from Asia, Denmark (and) sometimes even the U.S. Doing business with the (Danish) is different then doing business with the Chinese. Watching the (Danish) and Chinese do business together can be amusing. The common denominator between us and our Danish and Chinese partners is quality and service.