In the Deposit Return Scheme as being introduced in Scotland in 2022, producers face the biggest challenges.
If the Scottish law is replicated across the UK, then by 2023 producers could be responsible for the return of beverage containers from approximately 73,300 grocery retail outlets in the UK and 117,000 licensed premises.
Producers must bear the costs of the scheme via a producer levy. Costs include Reverse Vending Machines, maintenance, staff costs, storage, rent of space.
Where costs are borne by retailers, they can recharge them back to producers: and may as a result have less regard for the efficient running of the scheme . This will be a potential bone of contention between producers and retailers.
To handle the sheer volume, larger venues will require Reverse Vending Machines with associated huge cost of capital for the retailer (charged back) or the producer.
As a party independent of retailers, prodicers and equipment manufacturers, Deposit Return Solutions can help build a service to make sure an efficient industry standard is in place meeting all stakeholder interests.
Many of the responsibilities for running the scheme sit with the producers, but this doesn't mean there aren't challenges for retailers.
Without action before the scheme starts, retailers could be faced with demands for deposits by consumers without the processes, infrastructure and producer support to deal with it.
This will be disruptive, could result in fines if the retailer does not comply with scheme responsibilities. There may also be costs which which cannot be passed back to producers, and of course, not to mention the hygiene concerns and mess that returns will make if not carefully managed.
Large retailers will be more readily able to access advice and resources to ensure their needs are met, whereas independent grocery and hospitality venues may find themselves struggling for solutions: DRSUK can help both.
Deposit Return Solutions UK can help your business work with the producers and scheme administrators to make sure you have a solution which fits your needs.
Without a deposit scheme already in operation, there is currently no UK market for services to the producers and retailers. But this is set to change rapidly ahead of the scheme going into operation in Scotland in 2022.
If you are a Reverse Vending Machine supplier, supplier of other in store handling processes or services, waste handling or IT admin provider, building contacts with UK producers and retailers or tailoring your current service to fit producer and retailer needs will be a challenge. We are specifically developing solutions for smaller outlets, so if you think you have an answer please do contact us.
Deposit Return Solutions UK can be your feet on the ground in the UK, helping you access the UK market and offering solutions to your needs.
If you are seeking partners, especially to play a part in offering the industry a full service option or options for smaller stores and venues, please do not hesitate to get in touch.
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