Convenience channel welcomes 20p deposit level
CONVENIENCE channel and wholesale leaders have vowed to work closely with Exchange for Change on the remaining details for the UK deposit return scheme (DRS).
And they have welcomed the scheme administrator’s announcement that the deposit will be set at 20p for all single-use drinks PET plastic, steel and aluminium containers.
But they say many crucial aspects about the operation of DRS still need to be confirmed – with particular concerns about the cost implications for independent retailers.
Luke McGarty, of the Scottish Grocers’ Federation (SGF), said getting the deposit level right was critical to maximise returns without impacting on sales.
The SGF head of policy & public affairs added: “Retailers still have many questions that need to be answered so that they can make the right decisions for their businesses, particularly around the retail handling fee, collection rates and exemptions.
“SGF will continue to work closely with Exchange for Change to raise these issues and ensure Scottish convenience is a key part of the decisions being made.”
The Scottish Wholesale Association (SWA) also welcomed the flat fee structure, saying it was the simplest for wholesalers and retailers to implement, carried the lowest operational cost and was clearer for consumers to understand.
However, SWA chief exec Colin Smith warned there were still significant elements of the complex scheme to be worked through and that consumers would particularly notice the difference on multipacks.
He said: “The priority now must be making sure the wider scheme works in practice and does not add unnecessary cost or burden to the supply chain.
“We will continue to work constructively with Exchange for Change and industry colleagues to help get that right.”
The Fed, which serves on Exchange for Change’s advisory board, has called for DRS to be “revenue-neutral” for retailers, with a generous handling fee and a system of grants to help small shops prepare for the change next year.
Referring to the 20p deposit, the Fed’s national president, Hetal Patel, said: “All the evidence from retail engagement in the UK and from other countries already applying DRS around the world indicates it has been set at a sensible level.
“This will provide customers with a positive nudge to return their bottles and cans so they can be recycled, reducing waste.”
The Association of Convenience Stores (ACS) said the retail handling fee would play the biggest role in retailers making a decision about how to be involved with the scheme.
ACS chief exec Ed Woodall said: “We remain committed to working with Exchange for Change to explain the details of the scheme to retailers, and to ensure it can be implemented in a targeted, sustainable way that causes minimal operational and cost burdens for the convenience sector.”
Russell Davies, Exchange for Change chief exec, said the administrator would continue to closely support producers and retailers throughout the process.
He added: “The deposit value is a pivotal part of how DRS will work in practice. That’s why we’ve engaged widely with industry, and undertaken extensive market research and in-depth analysis on how schemes work in other countries.
“This work has identified that a flat 20p deposit is the most proportionate and sustainable amount for the UK.”
