Deposit return scheme: Circularity Scotland announces £22 million support for drinks producers - but clarity still sought

Drinks producers have been promised support worth £22 million to help prepare for the introduction of Scotland’s bottle deposit return scheme.

This package of support has been designed to help small to medium sized as brewers, distillers, importers and manufacturers, who are set to be hit the hardest by the heavily-criticised plans.

The package includes the removal of up-front charges for lower sales volumes, improved payment terms for lower sales volumes, and simple labelling option for niche products.

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Circularity Scotland, the non-profit company set up to manage the scheme, will remove the day one and month one charges for all producers, up to three million units a year. There will also be two month credit terms on deposits and fees to the three million units threshold.

Most critics don't disagree with the aim of the deposit return scheme for bottles and cans, but it needs to be workable. Picture: George Frey/Getty ImagesMost critics don't disagree with the aim of the deposit return scheme for bottles and cans, but it needs to be workable. Picture: George Frey/Getty Images
Most critics don't disagree with the aim of the deposit return scheme for bottles and cans, but it needs to be workable. Picture: George Frey/Getty Images

Circularity Scotland said this threshold will help small brewers, wine importers and craft spirit businesses.

Self-adhesive barcode labels will be made available for producers who place less than 25,000 units per year of a specific product to the Scottish market. Circularity Scotland said this will help independent producers and importers for whom the cost of changing packaging to introduce new barcodes could be prohibitive.

Circular Economy Minister Lorna Slater said: “This is a big and welcome change that responds directly to many of the concerns that have been raised, particularly those from smaller producers like craft brewers. It addresses initial cash flow challenges, and provides a pragmatic and simple solution to the issues raised around barcodes for smaller product lines.

“This is a package that gives businesses the clarity and confidence they need to be part of Scotland’s deposit return scheme.

“Over the last few months I have been meeting industry regularly to listen to their feedback and this industry-led solution has been designed in direct response to its concerns.

“I remain committed to a pragmatic approach to implementation between now and the 16 August. By working together we can lead the UK in delivering a deposit return scheme which will increase Scotland’s recycling rates from around 50 per cent to 90 per cent, cut emissions, tackle littering and address public concerns about the impact of plastic and other waste.”

But Stuart McMahon, the Campaign for Real Ale’s regional director for Scotland, said there will still be a “catastrophic” reduction in consumer choice unless there is a pause on the scheme for small businesses.

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He said: “Removing upfront charges and making labelling easier for small breweries and cider producers is a welcome step in the right direction to help small businesses take part in the Deposit Return Scheme without large up-front fees.

“Even with this announcement, with a hard deadline of 28 February for signing up to take part in the Deposit Return Scheme, CAMRA still fears small producers across these islands simply aren’t going to be able to commit, now, to the months of bureaucracy and extra costs required to continue selling products into the Scottish market.”

Colin Wilkinson of the Scottish Licensed Trade Association said: “We still have serious concerns that the scheme currently being proposed will increase costs for the consumer and reduce the amount of choice available.

“Many key questions remain unanswered and the Minister for Green Skills, Circular Economy and Biodiversity, has been unable to tell us how many producers – so far – have signed up for the scheme. The level of producer registration is crucial to the scheme’s success.”

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