The Welsh government’s radical plans to set mandatory reuse levels for drinks containers as a key part of its deposit return scheme rollout risks imposing costs on manufacturers that “dwarf” that of EPR, suppliers have warned.
The deadline for Wales’ consultation on its “breakaway” proposals ended this week. In their submissions, retail bosses and drinks manufacturers urged ministers in Cardiff to think again, warning their proposals would lead to soaring prices and cross-border supply chain chaos.
The submissions also urge Welsh ministers to think again about plans to include glass from day one of the DRS launch, warning it was in serious danger of delaying the proposed October 2027 launch date for DRS across the UK.
As a key part of its plans, the Welsh government has mooted the possibility of mandatory targets for companies on the proportion of products that can be reused to create a circular drinks packaging economy.
The FDF said it had conducted in-depth interviews with more than 30 suppliers, which warned the plan would impose huge extra costs on production.
Feedback from the manufacturers warned that with supermarket own label making up more than 50% of all sales, packaging specifications were driven in many cases by retailers – with no ability for producers to override decisions to hit new targets on reuse.
It also warned that producers estimated the potential cost of making changes to bottle production could typically require investment of over £1m, which would be crippling for many smaller firms.
‘Putting the cart before the horse’
The FDF said the Welsh government, which has insisted the rest of the UK will follow its lead on putting reuse at the heart of DRS, was “putting the cart before the horse”.
“We need to define the system first, then set realistic and evidence-based targets,” it said. “While there is support for reuse in principle, it is too soon to commit to specific targets. We recommend a long-term phased approach, aligned with direction of travel and long-term targets within the UK and at an EU level.
“As producers, the costs and practical challenges of reuseable packaging dwarfs DRS for single-use drinks containers and packaging EPR.”
The FDF also called for Wales to think again about including glass from day one of the scheme, while not requiring deposits from consumers on glass containers, saying it would heap major cross-border costs on to companies.
“We cannot see how industry or government will be able to separate out data for products and drinks flowing into Wales and therefore pragmatically include and exclude containers for differing scopes,” the FDF said.
The BRC also expressed major concerns over the impact of the Welsh reuse plans in its submission this week. It said that while it supported the principle of reuse, it must be pursued across the entire fmcg sector, not just drinks, and be developed through a dedicated, evidence-led policy framework, separate from DRS.
“It is vital that debate over glass does not delay progress on an aligned DRS for PET and aluminium,” said the response.
“Retailers welcome the Welsh government’s move to align DRS on PET and cans across the UK – a practical step towards cutting waste – but with the October 2027 deadline now less than two years away, clarity on day one glass inclusion is urgently needed,” said BRC sustainability policy advisor Naomi Brandon-Bravo.
“It is also vital, looking forward, that DRS and reuse are treated as a separate systems.
“A successful reuse scheme will depend on getting the design right before setting targets, ensuring it delivers real environmental benefits without excessive cost and complexity.”
Meanwhile British Glass, in its submission, warned the unilateral inclusion of glass beverage containers in the Welsh DRS, particularly with a proposed 0p deposit until 2030, risked undermining both environmental and economic outcomes fo DRS.
“Glass is already one of the most successfully recycled materials in Wales, with a household collection rate of 92%,” said British Glass director Nick Kirk.
“Introducing a DRS with no deposit for glass will not incentivise returns, but will significantly increase costs for producers and retailers, with no measurable improvement.”
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