DRS ‘potentially ruinous for many independent brewers’

14-Feb-2023 - Last updated on 14-Feb-2023 at 10:57 GMT

Reaction comment: SIBA is calling for support in response to more closures (image: Getty/Monty Rakusen)

The introduction of the Deposit Return Scheme for Scottish brewers could be “ruinous” for a number of brewers, according to the Society of Independent Brewers (SIBA).

Chief executive Andy Slee called on the Government to introduce support for small brewing businesses in response to further brewery closures.

He said: “The brewing industry is the most taxed in the UK and is facing steeply rising costs and a fall in consumer spending due to the cost-of-living crisis.

“For many breweries the battle to stay afloat is proving a real challenge. It is now vital the Government introduce a number of measures to help businesses survive, staring with the introduction of draught relief at 20%, which would encourage sales in pubs – driving money back into the economy and helping the breweries that supply them.”

Scheme details

Scotland is set to implement the DRS from August this year in a bid to cut waste and tackle climate change.

A number of trade associations warned the Scottish government thousands of firms will be unable to meet the deadline of implementation.

Slee outlined his concerns over the initiative. He said: “There are serious doubts over the workability of the proposed Deposit Return Scheme due for introduction in Scotland this year.

“Many independent brewers are taking the tough decision not to supply the Scottish market as a result of the scheme.”

The organisation has called for an 18-month grace period for small and medium-sized producers alongside a critical re-examination of how the scheme will integrate with the rest of the UK.

Clarity needed

“While we agree with the sentiments and objectives of DRS, we are faced with the most expensive and complex scheme of its type anywhere in the world. Potentially ruinous for many independent brewers,” Slee said.

“Energy is also a huge issue for small breweries that are energy intensive businesses and while it is welcome breweries will be included in the Energy Bill Discount Scheme, we are still waiting on clarity over how brewers and other energy and trade intensive industries will apply for the discount.

“The availability of grants for the installation of green technology is also vitally important – as small breweries seek to reduce their energy consumption and be more sustainable overall – and we would urge the Government to help brewers in this regard as a matter of urgency.”