Welsh drinks giants unite to challenge Deposit Return Scheme plans

Emily Price

A dozen iconic Welsh drinks brands have united to urge ministers to reconsider the inclusion of glass in Wales’ Deposit Return Scheme (DRS) and to appoint the same scheme administrator as the rest of the UK.

Chiefs of the twelve household drinks businesses, spanning alcohol, soft drinks, and bottled waters from every corner of Wales have written to the Cabinet Minister for Sustainability and Rural Resilience, Llŷr Gruffydd calling on him to urgently appoint operational body ‘Exchange for Change’ as the Welsh DRS administrator.

Signatories of the letter include Radnor Hills in Knighton, the iconic still water brand Brecon Carreg in Llandeilo, and the largest independent brewery in Wales, Brains Brewery in Cardiff.

A UK-wide DRS is planned to go live across England, Scotland, and Northern Ireland in October 2027, covering plastic bottles and metal cans only.

The scheme will be overseen by Exchange for Change who will manage collection, recycling, and reverse vending machine operations.

A Welsh DRS is also scheduled to launch in October 2027, covering plastic bottles and metal cans – but also glass bottles.

The Welsh Government rejected Exchange for Change’s bid to manage the scheme because it failed to meet the specific requirements of Wales’ DRS – particularly the inclusion of glass.

‘Uncertain’

Welsh drinks businesses warned that the new Plaid administration in Cardiff Bay has inherited “uncertain circumstances” from the previous Labour Welsh Government which sought to diverge from the rest of the UK’s plans by including glass bottles.

With just 15 months until the UK scheme is launched by Exchange for Change, industry bosses are urging the Welsh Government to follow suit by appointing the organisation in Wales too.

The companies argue that this would help ensure Wales has a fully operational DRS when the rest of the UK launches in 2027, avoiding the risk of the country being left behind.

However, the Welsh Government says it is “inaccurate” to describe the process as delayed, adding that it would be “inappropriate to pre-judge the outcome of the ongoing formal process”.

Glass

Concerns have also been raised by industry analysis which suggests including full-scale glass collection from day one of the scheme could add up to 50 pence to every single glass bottled drink sold in Wales.

They warn that this could mean “higher prices for Welsh shoppers as well as fewer glass products on Welsh shelves, fewer viable Welsh businesses like ours, and fewer Welsh jobs

Signatories of the letter said: “Wales already has an impressive record on glass recycling, with 92% of household glass collected for recycling.

“However, including glass in the Welsh scheme potentially disrupts existing successful recycling systems, so the Welsh Government should proceed with caution to avoid unintended consequences for consumers, small businesses and the wider UK scheme due to the costs and inherent fraud risks of having different schemes on each side of the border.”

The Welsh Conservatives in the Senedd have also called for a UK-wide approach, warning that the decision by Plaid Cymru and Labour to have a separate system in Wales could cost jobs and limit consumer choice.

Shadow Minister for Farming and the Environment, Andrew RT Davies said: “The Welsh Government’s shambolic proposal for a separate Deposit Return Scheme to the rest of the UK will drive up prices for consumers, reduce consumer choice and cost manufacturing jobs.

“The British Soft Drinks Association, which speaks for drinks manufacturers, is clear that this decision will likely add 50p to the cost of a bottle and that will be passed on to consumers, driving up the cost of living.

“This scheme will only be successful if it is UK-wide. The Welsh Government needs to co-operate with the industry and governments in other parts of the UK.”

A Welsh Government spokesperson said: “This new government is committed to ambitious action on climate and nature, and a Deposit Return Scheme is an internationally proven way of delivering both environmental and economic benefits.

“The scheme must work for Wales, and we will continue to work closely with industry to ensure the arrangements are right.

“There is a formal process underway to appoint a Deposit Management Organisation.

“It is inaccurate to suggest there has been a delay, and it would be inappropriate to pre‑judge the outcome of the ongoing formal process.”