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By Scott Wright

SCOTLAND’S flagship deposit return scheme will financially disadvantage craft drinks producers and increase their carbon footprint, it has been claimed.

The scheme has been designed to boost recycling rates by requiring consumers to pay a deposit of 20p when purchasing a drink in a single-use container, with the money given back when they bring the empty bottle or can back to outlets operating return points. It is now scheduled to go live in August 2023, after its original implementation date was pushed back because of the pandemic.

However, the scheme is causing alarm at Scottish craft drinks producers and wholesalers, which argue that it will have damaging cost implications and consequences for efforts to improve the sustainability of their operations.

Aberdeenshire-based Summer House Drinks, which makes natural fruit-based soft drinks and tonics, has generated an increasing proportion of its sales online since the pandemic took hold and disrupted key routes to market in the hospitality trade two years ago. But Claire Rennie, who founded the farm-based business eight years ago, said that under the deposit return scheme her firm would have to dispatch couriers to collect empty containers from consumers who purchased the products online. This could involve couriers, for example, being sent to pick up an empty container in Glasgow and returning it to Summer House's base in the north-east.

Ms Rennie said the additional cost would make her firm’s online business unviable and incur additional environmental footprint, given the distances that would have to be travelled to return containers to the producer.

Gifting companies, which include bottled products in hampers of food and drink, and florists that offer deals with bottles of Champagne or wine, are among other online operations that could incur extra costs. Those suppliers would also have to pay for bottles to be returned to them in order to be added into the deposit system.

Asked how she would like the Scottish Government to respond to these concerns, Ms Rennie said removing glass from the deposit return scheme would be “amazing”, noting that many speciality producers utilise glass because it is a “easy entry-level container” that does not require the investment in equipment that is needed for plastic and cans.

“Then that would mean the speciality sector is pretty much taken care of within the scheme,” Ms Rennie told The Herald. “Ultimately, glass isn’t a major polluter in the same way that plastic or cans are. When you look at litter, it is mostly plastic and cans – glass is already very widely recycled.”

Mr Rennie would also like there to be free return for people who order products online, adding: “If they can’t take glass out the scheme, then they really have to look at free return, because it just puts a massive burden cost-wise on business, and also carbon footprint-wise on the whole economy.”

Ms Rennie questioned whether consumers would want the hassle of having to be home at certain times in order for containers to be picked up by suppliers’ couriers, in order to receive 20p for each item. “The local shop should be able to take these back,” she said. “You have to make it as easy as possible for consumers to want to participate in this, or else it will fall flat.”

Ms Rennie also raised the prospect of a drinks border between Scotland and England arising from the scheme, highlighting the possibility of containers sold in England being gathered up and taken into Scotland to be redeemed. It has been suggested that Scottish labels are placed on containers to prevent this, but Ms Rennie pointed out that this may result in wholesalers having to create two separate areas in warehouses, adding more cost. One area would have products with Scottish labels, the other with products labelled for England.

Joe Wall of fine food wholesaler The Cress Co said: “The assumption is that DRS stock will need to be identifiable through either a marking and/or different barcode. This will make it difficult for small suppliers as they will need to produce different labelling for Scotland and the rest of the UK. From a wholesale point of view we would need to hold two identical SKUS (stock keeping units), one for Scotland and one for the rest of the UK. This would lead to significant range reduction due to the increased warehouse space and cashflow required. We would probably look to no longer offer distribution outside of Scotland for several of the small Scottish drink suppliers due to the cost associated.”

Mr Wall added: “Many of our independent retailers will struggle to implement and manage this scheme and may withdraw from offering DRS affected products. Our customers are a key sector for new start-ups in the food and drink space and this will be impacted.”

Ms Rennie added: “The headache for wholesalers, many who have just made it through the many Covid lockdowns, is massive. There is a scheme proposed for the rest of the UK which is coming in 2024. If the two schemes aren’t compatible and can’t be run together, then we will face double the costs to sell across the UK.”

A Scottish Government spokesperson said: “Scotland’s deposit return scheme will be one of the most environmentally ambitious and accessible in Europe. It will recycle nearly two billion bottles and cans every year, making a vital contribution to Scotland’s environmental targets.

“To guarantee that the scheme is accessible to everyone, including people with restricted mobility, all retailers offering distance sales will have to offer a take-back scheme. However, consumers will be able to return containers purchased online to any of the estimated 17,000 return points across the country and it is anticipated that the vast majority of returns of online sales will be made in this way.

“Glass will be an important part of the scheme and including it maximises the environmental and economic benefits. With more than 500 million glass bottles on the Scottish market, this will significantly increase the quantity and quality of glass recycling. There is no requirement in the scheme regulations for mandatory labelling. Industry is best placed to determine the solutions that work for them, and Circularity Scotland is in discussions with businesses to finalise their approach.”