‘Brewers could be forced out of bottled beer market’
The British Beer & Pub Association (BBPA), Independent Family Brewers of Britain (IFBB), Campaign for Real Ale (CAMRA) and Society of Independent Brewers & Associates (SIBA) have written to the Secretary of State for the Environment, Rt Hon Steve Reed MP, to urge a review of the recently set initial illustrative base fees for year 1 of EPR (extended producer responsibility) for packaging.
It also wanted to sound the alarm around potential consequences for brewers, pubs and customers over the regulations that have been set by the Department for Agriculture, Environment and Rural Affairs (Defra).
The proposed new fees will add “eye-watering” additional costs that brewers will be expected to bear from next year, trade bodies warned.
BBPA CEO Emma McClarkin said: “Our sector has ambitious net zero targets and is committed to a circular economy and working together to achieve this in a sustainable manner.
“However, these suggested fees pose a serious risk of business failure and could lead to extra cost for the customer, strangle investment and growth, which means less jobs and [could] lead some to make heart-breaking decisions about whether they can keep making their beer.
Devastating impact
“It is critical that Government takes a step back to consider the devastating impact this could have on our industry, which plays a vital role for the UK’s economy and employment.
“We urge them to review these fees and make them fairer and more sustainable, so we can continue to do business.”
McClarkin had previously stated: “While these estimated fees provide long-overdue clarity, they sharply reinforce our concerns about the eye-watering additional costs brewers will be expected to bear from next year and impact on customers.”
In the letter to the Government, trade associations advised that for 330ml glass bottles, the figures published will add between 3p and 7p on each of the 3.2bn bottles of beer sold in the UK each year, a cost of up to £212m and with a midpoint estimate of £167m.
For heavier 500ml bottles, in which most premium bottled ale is sold, the costs could be up to 9p per bottle.
The group stated this is the equivalent of a 8% to 21% beer duty increase on these products and, like beer duty, which is set to rise again in February, will inevitably lead to price increases for consumers and fuel inflation.
Reduce extremely high costs
Industry leaders warned the cumulative impact of the proposed fees could see the end of many of Britain’s much-loved bottled ales, dramatically reducing choice and more than wiping out any profit brewers were hoping to achieve in already extremely challenging times.
Nick Mackenzie, Greene King CEO, said: “We are committed to playing our part in supporting a more sustainable and circular economy, however, these new glass fees would contribute to significantly higher costs for brewers so it is vital a solution is found to protect hundreds of years of brewing heritage and maintain choice for customers.
“With the Budget coming on 30 October, it is more important than ever to look at how the Government can reduce the extremely high costs of doing business for the UK’s pub and brewing sector.”
Theakston managing director Richard Bradbury said: “We understand the desire to tackle unnecessary packaging waste but the scale of charges, particularly on glass and the current plans for implementation could force out our Old Peculier beer and similar brands of the bottled beer market.
“The glass we use is manufactured in the UK, has a high recycled content and is then itself far more likely to be recycled through a bottle bank than end up in landfill.
“We urge Defra to take a pause and take the time to work with Britain’s traditional ale breweries to find a better and more affordable solution to a problem that we don’t really think is of our making.”
