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Delay ‘badly managed’ EPR scheme, firms urge
‘Exasperated’ British businesses are urging the UK government to delay a ‘confusing and badly managed’ environmental scheme set to come into effect in fewer than six months.
In January 2025, the UK government’s Department of Environment, Food and Rural Affairs (Defra) will introduce the Extended Producer Responsibility (EPR) scheme after a one-year delay.
The aim of the scheme is to hold producers accountable for packaging waste – which the Wine and Spirit Trade Association (WSTA) said is a principle the drinks industry accepts.
Under the EPR scheme, producers will have to report how much packaging they release into the market and pay associated fees. However, the fees for EPR will not be known until summer 2025, six months after the scheme begins. Producers have argued it is therefore ‘impossible’ to know the cost of the scheme to businesses and consumers, and fully prepare.
The WSTA warned this could be particularly harmful for SMEs (small and medium enterprises) and importers, which tend to have lower cash reserves.
Furthermore, as the guidelines currently stand, producers would end up paying twice for hospitality and business waste packaging. Currently, this is paid for through backhaul and direct contracts with waste collectors, and the PRN (packaging recovery note), but will now also have additional EPR fees.
More than 80 businesses have penned a joint letter to ministers expressing their concerns over the ‘flawed’ scheme.
Miles Beale, chief executive of the WSTA, said: “Defra sensibly delayed EPR by one year, however it is clear that the scheme is not ready to roll out and a further delay is required to make sure the costs are realistic and known in advance.
“Wine and spirit businesses are working towards using less packaging and making it more recyclable, but the scheme currently set out is unfair and unfit for purpose. A delay would mean industry and Defra could work together to find a fairer, clearer and more sustainable resolution.”
‘Unfair burden’
Wine and spirits distributor Enotria & Coe is among the companies that have voiced worries about the scheme.
Julian Momen, CEO of Enotria & Coe, said: “We are deeply concerned about the Extended Producer Responsibility scheme’s impact on businesses like ours.
“The illustrative fees disproportionately affect glass, threatening the wine and spirits sector and potentially diverting investment by overseas producers away from the UK. We urge Defra to adopt a simpler, unit-based approach, fostering a competitive market for all packaging materials, and to delay EPR implementation to align with the introduction of the deposit return scheme.
“Equally important is that under current EPR rules, wholesale and hospitality businesses risk paying for both commercial waste collection and EPR charges for household waste. Operators must be allowed to clearly demonstrate that packaging is non-household and collected through commercial contracts, making it exempt from EPR fees. It is unfair to burden these businesses with double charges due to the complexity of the issue.”
The Dalmore owner Whyte & Mackay is also among the companies calling for a delay.
“It is essential to delay EPR,” urged Kirean Healey-Ryder, head of corporate relations at Whyte & Mackay. “Not to deny the fact it is important, in fact producers already take their responsibility extremely seriously. We all recognise that sustainability is complex. We know from recent experience (with DRS [deposit return scheme]), that if we are too quick to launch, EPR will be quick to fail. A delay will ensure EPR is ready.”
Additional signatories of the joint letter to Defra include Berry Bros & Rudd, Hayman Distillers, Kingsland Drinks, Mast-Jaegermeister UK, and Thames Distillers.
In the October issue of The Spirits Business magazine, we explored in detail why brands see the current EPR proposal as flawed.
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