The bosses of the UK’s biggest supermarkets have made an “unprecedented call” to the new Plaid Cymru government to rethink Wales’ deposit return scheme, warning it faces collapse without action.
Figures including Tesco UK CEO Ashwin Prasad and Sainsbury’s chief Simon Roberts have joined drinks leaders from companies including Coca-Cola and PepsiCo in a letter to Welsh first minister Rhun ap Iorwerth.
It calls on the Welsh government to urgently appoint Exchange for Change, the body already tasked with running DRS by the UK government, as scheme administrator in Wales.
The letter comes after The Grocer revealed last month that talks between trade bodies and drinks companies with cabinet minister for rural resilience and sustainability Llyr Gruffydd aimed at salvaging the scheme had broken up without a resolution.
The talks focused on the Welsh government’s plans to include glass in the country’s DRS, putting it at odds with the rest of the UK – a policy passionately followed by the previous Welsh administration. Drinks bosses and retailers have suggested a compromise deal to provide a limited number of glass return points from day one of the scheme, rather than universal coverage.
Such a plan had been strongly rejected by the previous government.
With the clock ticking until the government breaks for its summer recess on 19 July, the executives said that unless a scheme administrator was appointed by then, the October 2027 launch date for the scheme would be unviable.
The letter from supermarket and drink company bosses says: “We recognise that your government has inherited significant delays to the process of appointing a scheme administrator for the Welsh DRS from the previous administration.
“It rejected the industry-backed bid by Exchange for Change to run the Welsh scheme, despite its application containing a pragmatic compromise on glass and complying with the regulations.
“We welcome your government’s recent constructive engagement with industry and Exchange for Change to find a way forward, building on your manifesto commitment to include glass only when it becomes practically feasible.
“There is now less than 15 months until the scheme’s legislated launch date in October 2027. Based on our experience with other schemes and the preparation they require, the only realistic option for staying on schedule in Wales is appointing Exchange for Change and working with them to deliver a scheme.
“Unless this happens by the end of July, commercial and operational realities that our businesses have to respond to will create negative economic outcomes for Welsh consumers, reducing choice and increasing the costs of products on shelves.”
A spokesman for Coca-Cola Europacific Partners said: “A well-run deposit return scheme reduces litter, boosts recycling rates, reduces carbon emissions and creates a cleaner environment for communities – every week without a scheme administrator for the proposed Welsh scheme makes delivering those benefits more challenging.
“Businesses want to focus on building a scheme that genuinely serves Welsh consumers and the environment. Therefore we respectfully encourage the Welsh government to move forward appointing a scheme administrator before recess.”
A spokesman for the Co-op Group added: “Action to protect the environment is a consistent priority for Co-op members, and we have long welcomed a deposit return scheme that increases recycling rates and decreases litter.
“We want to see accelerated progress towards a more circular economy, to protect the range and cost of drinks available to consumers, and to continue to serve communities through our stores right across Wales – all of which can only be achieved if the Welsh government moves with pace and pragmatism to appoint Exchange for Change without any further delay.”
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