What is the deposit return scheme and what does it mean for distillers?

What is the deposit return scheme and what does it mean for distillers?

The deposit return scheme (DRS) is a program that requires consumers to pay a deposit when purchasing certain types of single use container, such as bottles of alcohol, and receive a refund when the container is returned for recycling.

The policy is due to come into place in August 2023 after considerable push-back delayed the programme from being implemented in 2022. The policy has again come under scrutiny from the drinks industry due to the costs and administrative burdens it could impose on companies which include:

1. Compliance cost: Distillers will be required to pay a fee to participate in the scheme, and they may also have to invest in new equipment or hire additional staff to handle the increased volume of bottles being returned.

2. Costs of transportation: Distillers may have to bear the costs of collecting, transporting, and processing the returned bottles, which could be substantial for remote distilleries.

3. Reduced production efficiency: Distillers may have to temporarily shut down production lines to handle the returned bottles, which could reduce their overall efficiency and productivity.

4. Reduced flexibility in product offering: Certain specialty products and smaller batch offerings may be difficult to offer under the restrictions of DRS, losing revenue potential

5. Reduced margin: Deposit costs may increase the product price resulting in reduction in revenue

Innovating to reduce friction

Our innovative refill pouches offer a solution that not only streamlines your operation but also allows you to bypass the requirement to participate in the UK’s deposit return scheme (DRS). Pouches are made from durable, food-grade materials and can be easily filled and sealed onsite, reducing the need for costly transportation and reducing your carbon footprint. The pouches also offer an opportunity for branding and can be customized with your distillery’s logo and branding. Switching to our refill pouches can also potentially increase your revenue as it offers more flexibility in product offerings such as small-batch or limited-edition spirits. Let us help you take advantage of this opportunity and contact us for more information on how we can assist you in making the switch to our refill pouches.

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