Deposit return could end online drink sales by some firms, retail chiefs warn

Business leaders have hit out at the Scottish Government over its “unworkable, unsustainable, and undeliverable ultimatum” to retailers contained in the planned deposit return scheme (DRS).

The Scottish Retail Consortium (SRC) has warned the amended regulations for the scheme – which has now been delayed until March 2024 – could result in some companies stopping internet sales.

The SRC claims a requirement for those selling drinks online to collect empty containers from customers for recycling means businesses will need to make “serious decisions” about whether they can continue doing so.

Ewan MacDonald-Russell, deputy head of the SRC, said: “These new regulations make delivering Scotland’s deposit return scheme successfully next March even less likely.”

Deposit return will see shoppers charged a 20p deposit every time they buy a drink in a can or bottle, with this money returned to customers when the empty containers are brought back for recycling.

Mr MacDonald-Russell said grocery retailers had “insisted for months” they would not be able to deliver a collection scheme to deal with returns for online sales in time for the delayed launch date for DRS.

But he said these concerns appear to have been “ignored” by the Scottish Government.

Retailers would be unable to use their existing vehicles to collect empty drinks cans and bottles because of food safety risks, the SRC said.

As a result, it said companies selling drinks online would have to purchase new vehicles for this purpose – something it said could be “incredibly expensive”, while it also claimed making additional trips to collect customers’ empties would increase carbon emissions.

Mr MacDonald-Russell said: “Scottish ministers seem prepared to risk ending online drink sales in Scotland with their unworkable, unsustainable, and undeliverable ultimatum in the amended deposit return scheme regulations.

“Grocery retailers have insisted for months on end they cannot deliver an online takeback solution in time for the new go-live date, whilst explaining the only way this can be delivered is through a centralised model. Regrettably those valid concerns appear to have been ignored.

“It is not economically, environmentally, or legally sustainable for retailers to collect empty drinks containers from customers’ homes using their own vehicles.

“In the absence of a centralised solution, larger retailers will now need to take very serious decisions about whether it’s possible to continue selling drinks online in Scotland, as they currently do, after March next year.

“Ironically, these proposals will make life harder for vulnerable consumers who may now lose the opportunity to have drinks delivered directly to their home.

“Rather than continuing to try to compel businesses to deliver the impossible, Scottish ministers should be prioritising resolving the litany of unanswered issues, questions, and concerns which are the reason the scheme is in such distress.

A Scottish Government spokesperson said: “The regulations that we published this week will remove the obligation to take back containers bought online from the vast majority of retailers.

“Only the very largest supermarkets are being asked to provide this service, which will benefit those who are physically unable to access a return point.

“While we recognise this creates a challenge for large retailers, we consider it to be fair, proportionate and important as it will mean that everyone has access to Scotland’s deposit return scheme.

“The UK Government, who are developing their own plans, have also made it clear that online takeback will required from the start of the scheme, particularly for large retailers. This obligation is not new and has been in place since 2020.

“The amendments we have laid this week also make it easier to deliver for larger retailers. They will still have the flexibility to provide their own takeback service or have a third party deliver it for their customers, and we have been clear that we will continue to work with them to explore the possibility of a centralised takeback service.

“We have also set up a new operational group with retailers to resolve any outstanding issues to allow the scheme to launch successfully on 1 March 2024.”