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Scottish MPs call for ‘urgent review’ of DRS

Scotland’s Cross-Party Group on Beer and Pubs has warned the Scottish deposit return scheme (DRS) could prove a “very costly failure” without an urgent review.

Circularity Scotland has said that the Scottish DRS is "on course" to be launched in August (picture: Shutterstock)

Meanwhile, research commissioned by the company that makes Ribena found that consumers experience “surprise” at increased prices for soft drinks following the introduction of a DRS.

The government plans to introduce a DRS in England, Wales and Northern Ireland in late 2024 (see letsrecycle.com story). Scotland plans for its DRS to go live a year earlier, in August 2023 (see letsrecycle.com story).

Scotland

The Cross-Party Group on Beer and Pubs aims to “enhance the contribution the brewing and pub-related hospitality industry plays in Scotland”. It numbers Conservative MSP Craig Hoy and Labour MSP Paul Sweeney among its members.

Last week (28 June), the Group published a report into the impact of the Scottish DRS and concluded that the scheme’s chances of going live on time were “vanishingly thin”. The report follows an inquiry carried out by MSPs which took written and oral evidence from witnesses including small brewers, pub owners, online retailers, local authority representatives and Circularity Scotland.

Witnesses told the inquiry that “a huge amount of detail” was yet to be decided before they could fully understand what steps to take. They also said the DRS imposed “de-facto barriers to trade” at Scotland’s borders.

The report claims the introduction of the DRS will lead to price rises and a reduction in the range of products available. It also expressed concerns about fraud through online sales and ‘booze trips’ across the border into England.

The Group called on the Scottish Government to “take time out to clarify and reappraise the scheme”, adding that a “fundamental review of the net benefits of the scheme” was required.

‘Wake-up call’

Mr Hoy, who is the Cross-Party Group on Beer and Pubs’ convenor, said: “Everyone understands that we need to delivery circularity and net zero, but to be successful the scheme has to be effective.

Craig Hoy is the Conservative MSP for South Scotland and convener of the Cross-Party Group on Beer and Pubs (picture: Craig Hoy)

“It’s clear from the evidence we heard that the Scottish DRS is far from ready and if these details are not addressed it will not be viable.”

Leon Thompson is executive director of UKHospitality, a trade association representing more than 740 companies across the breadth of hospitality within England, Scotland, and Wales. He described the Cross-Party Group on Beer and Pubs’ report as a “wake-up call”.

Mr Thompson said: “The complexity of the scheme brings with it inherent financial risks to hospitality businesses.

“Scotland members continue to be concerned about secure storage, the theft of containers and the breakage of glass, all of which will result in the loss of deposits – a situation that would hit businesses hard.”

Shoppers and retailers

Meanwhile, drinks manufacturer Suntory Beverage and Food GB&I (SBF GB&I) commissioned shopper insights agency Shoppercentric to explore what the DRS means for shoppers and retailers. The research, which took place between May and December 2021, involved almost 8,000 people.

SBF GB&I commissioned Shoppercentric to explore what the DRS means for shoppers and retailers (picture: SBF GB&I)

SBF GB&I published the resulting report on 30 June. Shoppercentric found consumers experience a “three-stage mental shift” when required to pay a deposit, SBF GB&I says.

The first phase, which lasts around three weeks, sees shoppers who are not already aware of the legislation “surprised” at a potential increase in price at the point of purchase. SBF GB&I recommends retailers begins communications six weeks before the DRS’s introduction.

Matthew Deane, SBF GB&I’s head of customer marketing, said: “Deposit return schemes will bring about one of the biggest changes in shopper behaviour in a generation.

“Many people purchase on autopilot and will be surprised that they will have to pay more up front and then retain the items in good condition to get their deposit back.”

In the second phase, which lasts three to four weeks, shoppers learn new routines and adapt, SBF GB&I says. And, in the third phase, shoppers’ revised shopping habits “emerge” SBF GB&I says.

UK-wide DRS

Within the report, SBF G&I said that “ideally” there should be a single, UK-wide DRS. If there are to be separate schemes in the different nations, each must be “fully interoperable” to “ensure consistency”, “minimise consumer confusion” and “tackle potential fraud issues”, SBF GB&I says.

In response to the research, Keith Allen, SBF GB&I’s director for commercial sustainability, said: “We are passionately committed to deposit return schemes to ensure that the right conditions exist for a truly circular economy so that our bottles and cans are used again and again.

“These systems work brilliantly abroad. We need them to be as simple and similar as possible across the UK to avoid complexity and confusion for retailers and shoppers, so they have every chance of succeeding.”

Related links
The Impact of the Scottish Deposit Return Scheme
Deposit Return Schemes (DRS): What’s in Store?

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