Drinks bosses have warned Wales faces a “mass market withdrawal” after the UK’s decision to allow a deposit return scheme including glass.
A raft of trade bodies branded the decision a “recipe for disaster” and said it would lead to a vast number of products disappearing from shelves in Wales because the market would become prohibitively expensive.
The Grocer revealed on Thursday that Westminster had given Wales the go-ahead for a breakaway scheme under the Internal Market Act, which sources said would have huge implications for the UK rollout planned for October next year.
The go-ahead included a condition that while glass could be included from the start of the Welsh scheme, it would feature a transition period that would mean glass containers would have zero deposits and not have labelling requirements for DRS for the first four years of the scheme.
However, drinks bodies attacked what they called “disingenuous” claims from the Welsh government that this would prevent huge amounts of red tape and expenses.
They said stock would still have to be identified either as ‘not for sale in Wales’ or ‘for sale in Wales only’ to avoid paying environmental charges applicable in the rest of the UK.
In a grim prediction of the impact of the scheme, the groups predicted that up to 97% of some product lines would be withdrawn from the Welsh market because the burden of compliance.
They said the move would lead to a huge economic shock to SMEs. The move would also jeopardise Wales’ world-leading kerbside collection rates and perversely incentivise a shift from sustainable glass to less recyclable packaging formats, they added.
“While our industry is fully committed to producers paying for the waste they place on the market, including a UK-wide DRS for metal and plastic drinks containers by 2027, the Welsh government’s insistence on including glass is a recipe for disaster,” said WSTA chief executive Miles Beale.
“It will lead to a wide range of wine and spirit products disappearing from Welsh shops and supermarkets and create a barrier to trade that simply does not need to exist.
“It should be blindingly obvious that the only way to ensure unhindered market access and a successful DRS is to align the scope of materials across all of the UK.
“The additional pressure on wine and spirit businesses comes at a time when tax increases and costs – many of which are a direct result of government policies – are going through the roof. Not only will this mean higher prices and reduced choice for consumers, but the blinkered move will not deliver any meaningful environmental gains.”
Andy Slee, chief executive of the Society of Independent Brewers and Associates, added: “SIBA are fully committed to supporting the principle of a deposit return scheme providing it is effective in improving recycling and reducing waste.
“However, in its current form, the proposed system in Wales simple will not achieve this, and having played a leading role in the delay of the Scottish DRS which was not ready for launch, we are disappointed that lessons don’t seem to have been learnt by the Welsh government.
“These plans will sadly inevitably lead to higher costs and a poorer choice for consumers, with small producers on either side of the border avoiding supplying the Welsh market for economic reasons. We implore the UK government to see sense and reconsider the decision and for Wales to join a UK-wide scheme with the same scope as the drinks industry has been calling for.”
Meanwhile, FWD chief executive James Bielby described the Welsh compromise as “the worst of all worlds”.
“The inclusion of glass in Wales from 2031 creates confusion and will reduce consumer choice,” he said.
“It will create trading borders within the UK, increase costs, and damage the profitability of businesses working across the borders.”
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