New packaging costs could see some brewers pull out of using glass packaging. That’s the view of the British Beer & Pub Association (BBPA).
New regulations apply to all UK organisations that import or supply packaging. The regulations mean that these organisations may be responsible for the costs of dealing with packaging waste. This is called extended producer responsibility (EPR) for packaging.
“Government must be clear-eyed that these proposed higher additional costs on brewers would land an extra £160 million or 5p per glass bottle on the sector,” said Emma McClarkin, chief executive of the BBPA. “This could force some brewers to leave the glass bottle market.
“Given the incredibly narrow margins UK brewers operate to, as they make an average of 2p per bottle of beer, this means they’ll be forced to pass on extra painful costs to the consumer if they want to carry on making their product.
“The sector is, of course, committed to a more circular economy and sustainable packaging solutions, but it is critical that government properly considers the full impact of these fees and wider packaging reforms on our industry which will severely diminish growth and risk jobs.”
She added: “We urge them to continue to review these fees and ensure they are fairer and more sustainable, so we can continue to play a critical role for the UK’s economy and employment.”
Illustrative base fees have been published by the government here.
