SIBA Scotland urges gov to rethink DRS

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SIBA concerns: sales of cans and bottles have already stopped at many small breweries in Scotland (credit: Getty/FotografiaBasica)

The Society for Independent Brewers (SIBA Scotland) has urged the Scottish government to take another look at its Deposit Return Scheme (DRS) proposal because it threatens the existence of small breweries.

The planned DRS demands all drinks producers and any business selling single-use drinks containers in Scotland be required recycle drinks containers, such as bottles and cans. The scheme aims to ensure at least 90% of drinks containers are captured and prevented from becoming waste.

An Emergency Budget Review (EBR), which included an announcement on the DRS, made on Wednesday 2 November stated the government would: “Consider all options to ensure that online takeback obligations under the Deposit Return Scheme, which we understand are a bigger burden for some businesses than others, are applied in an appropriate and proportionate way.”

Exemption potential

The review continued: “And [it would] take steps through additional guidance to ensure the process for retailers to apply for an exemption from operating a return point, if they meet certain criteria as defined in the regulations, is as straightforward as possible. The scheme, which is industry led, will launch in August 2023.”

SIBA Scotland director Jamie Delap said: “Scotland’s small independent brewers are currently operating on a knife edge trying to survive the combined impacts of energy bill increases and a cost-of-living crisis. They haven’t yet been able to build the resilience they need to recover from the impacts of the Covid-19 pandemic.

“Small breweries are therefore rightly concerned about the impending Deposit Return Scheme coming next year, which they do not have the economic resources or capacity to prepare for or deliver.”

Online sales caveat

He continued: “It is therefore encouraging that the Scottish government has recognised some of the issues facing the scheme in the Emergency Budget Review and has indicated a willingness to amend the online takeback element that currently would prevent any small producer from selling online in Scotland next year.

“However, we would urge the Scottish government to look again at the requirements for small producers that, as currently designed, are threatening business closures and jobs in Scotland, and will lead to reductions in choice and an increase in price.

“Many small breweries have already told us they will have to stop selling beer in cans and bottles in Scotland because of the multimillion-pound costs of the scheme to small producers.”