Western Wines Ltd – the firm that created the South African wine brand “Kumala” – was fined £225,000 and ordered to pay more than £5,700 in costs and compensation to the Environment Agency by Shewsbury Crown Court on Tuesday (January 22).
The seriousness of this offence is shown by the large fine and is the highest fine for any packaging offence.
David Lloyd, Environment Agency
The fine more than doubled the previous record fine under the packaging regulations.
The company pleaded guilty to nine charges under the Producer Responsibility Obligations (Packaging Waste) Regulations (see letsrecycle.com story).
The Regulations require any company with a £2 million turnover or larger that uses at least 50 tonnes of packaging each year to sell their products to contribute towards UK recycling.
Western Wines, which has since been sold to US conglomerate Constellation Brands with its Telford headquarters, failed to register with the Environment Agency under the legislation from 2003 to 2005.
In failing to register the company avoided paying £2,486 in fees to the Agency. As a result of not paying for its share of meeting UK recycling targets for those years – through the purchase of packaging waste recovery notes (PRNs) from accredited recyclers – the company avoided paying £185,059.
Offences
Speaking in court for the Agency, counsel Barry Berlin told judges that Western Wine had filled out a questionnaire in 2005 revealing the possibility that it had committed offences under the packaging regulations.
However, although the company confirmed it had not registered in 2003, 2004 or 2005, it declined to attend an interview with the Agency.
The company had explained that it had overlooked its legal obligations during the last few years due to rapid changes in the business. The company had been bought by Canadian firm Vincor International three years ago before Vincor was sold to Constellation Brands.
In mitigation, the Agency said the company has co-operated fully with Agency officers and was now fully compliant.
Speaking after the case, David Lloyd, an Environment Agency officer involved in the investigation said: “The seriousness of this offence is shown by the large fine and is the highest fine for any packaging offence. The aim of these regulations is to make businesses take responsibility for the packaging used in their operations and reduce the amount of packaging waste going to landfill.”
David Hudson, an environment manager for the Environment Agency said: “Businesses should take steps to ensure that they understand all aspects and requirements of the packaging regulations. This case highlights that we will not hesitate to take action against those who breach the legislation.”
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