Michael King, general manager of 15th and Hoyt Liquors, said Muncie liquor stores' refusal to sell kegs is all about the money.
"[Retailers] were competing so hard to be Muncie's only keg destination, and they lowered the prices too low," King said. "They lowered it so severely - they didn't make a profit."
King said the three major liquor stores in Muncie - Save-On Liquors, Muncie Liquors and Friendly Package Liquors - were the major players in the keg drought.
"I received a phone call from Chris Johnson [general manager of Muncie Liquors] basically threatening me that if we thought about selling kegs, they would get into the keg business and run us out," King said.
He said Mike Kilgore, owner of Friendly Package Liquors, and Johnson were forcing the students to pay more for beer by not selling kegs.
"Kilgore said this is good for the community because [selling kegs] promotes binge drinking, but he sells kegs out of Chesterfield," King said.
Kilgore owns a Friendly Package Liquor store located at 3 N. Washington St., Chesterfield, Ind., which is about 14 miles from Muncie. The Chesterfield store is currently selling kegs of Bud Light for $75.99.
"It's clear to me that Kilgore's and Johnson's sole motive is just to make more money," King said.
Gaston Liquors, located at 103 Elm St. in Gaston, Ind. about 12 miles away, sells kegs of Milwaukee's Best Light for $59.99. Gaston Liquors only keeps about 10 kegs in stock at one time, owners Tamee and Jeff Koontz said.
In place of kegs, Johnson said Muncie Liquors offers discounts on beer bought in high quantities.
"We offer a discount if someone wants to purchase 10 30-packs," Johnson said.
He said $12.99 is the average price on a 30-pack.
"Six 30-packs is 180 12-ounce beers, that's more [beer] than a keg, and it'd be $71."
He said students are driving to Anderson and paying $73 for a keg, plus the cost of gas. Students would be better off buying six to 10 30-packs than they would a keg because a the leftover beer in a keg is wasted where the leftover cans of beer aren't.
However, King said one 24-pack of premium beer costs $15.55 after taxes for retailers, who then turned around and sold it for $16.50.
Seven 24-packs, which would cost about $115, would equal the amount of beer in a keg, King said. Muncie retailers normally sold kegs for about $85, so buying canned beer would cost students about $30 more.
"[Students] are not getting more for their money like they would if they got a keg," King said. "Basically, [retailers] are making more money and the beer companies are, too."
Johnson said if another retailer in Muncie began selling kegs, his store would have to start selling kegs again.
"The only way I would start selling kegs again is two ways: if the owner of the location instructs me to start selling them again or if another location in Muncie started selling kegs," Johnson said.
Rob Hook, manager of Friendly Package Liquors, said he's hesitant to start selling kegs again.
"I don't want to sell kegs because they tear up my equipment, and I don't make enough money off them," he said. "It's just like any other business, you have to be competitive."
King, Johnson and Hook all said if they needed to, they would be able to order kegs and have them delivered in a day or less.
"They've got their hand on the trigger," King said. "It is just a matter of who draws first."
Jessica Kerman and Erin Reece contributed to this story.
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