The Deposit Return Scheme (DRS) in Scotland is set to go live from August 2023 and will have consumers paying a small deposit of 20p when they buy a drink in a single-use container and get their deposit back when they return the empty bottle or can.

Despite the industry being behind the eco-incentive, craft breweries have concerns of the £365 sign up fee as well as potentially being liable for paying fines issued by the Scottish Environment Protection Agency (SEPA) should third parties or other wholesalers end up reselling any beers not under the scheme. “Producers will only have to a pay one fee to sign up to the scheme, not multiple fees for each container or product type. The fee is £365 but not applicable if the business’ total taxable turnover is below £85,000 per annum,” said Circularity Scotland in this article by thedrinksbusiness.

Infographic Summary – Deposit return scheme for Scotland

“It is down to individual brewing businesses to decide whether registration in the Scottish DRS makes financial sense for them, however with only around 80 small brewers having registered for the scheme – given its vast costs, complexity and lack of time to prepare – it is clear that many have voted with their feet,” said the Society of Independent Brewers (SIBA) chief executive Andy Slee.

 “We urgently need the new FM to carry out his leadership election promise and give small producers the extra time they need to prepare for the DRS scheme, otherwise Scottish drinkers will not have access to the same range of beer as England come the summer.”

One craft brewery in England has already begun labelling its beer “not for sale in Scotland” amid concerns that it could be hit with a “hefty” fine. “I have seen it talked about in brewing forums, they’re saying ‘don’t sell in Scotland or you might be hit with a hefty fine’.”

 “We are working flat out with producers of all sizes to deliver the DRS regulations as they stand and advise any business with concerns about fulfilling their obligations under the scheme to contact Circularity Scotland so we can discuss their particular circumstances and offer guidance.”

Rumours that Circularity Scotland is “actively considering” a one-year exemption for small producers from the DRS continue amidst the issues not being cleared up for the industry.

As part of his campaign for the SNP leadership, Humza Yousaf pledged that small producers like craft breweries should be given an exemption to the DRS, however despite having just been officially elected as Scotland’s new First Minister, his popularity with the drinks sector is still divided.

But, in a statement addressing the issue of liability, a spokesperson from SEPA warned that drinks producers needed to make their stance on whether wholesalers cannot sell their products clear, giving rise to the notion that the buck would stop with them and not the wholesaler.

The SEPA spokesperson added: “It is up to individual businesses to determine whether to sell their products in Scotland. Producers should make it clear to wholesalers and retailers if their drinks are part of the scheme and can be sold in Scotland.”

SOURCE: THE DRINK BUSINESS