The British Beer & Pub Association (BBPA) has issued a plea to the UK government, requesting a thorough reassessment of the impending Extended Producer Responsibility (EPR) fees associated with packaging.
This comes as the association anticipates that the new costs associated with glass packaging could compel some brewers to abandon its use.
According to the latest projections, the indicative EPR fee for glass could reach £240 ($301) per tonne for the years 2025 to 2026, as revealed in the third announcement.
In comparison, aluminium packaging is set at £435 per tonne, and fibre-based composites at £455 per tonne.
The British Beer and Pub Association CEO Emma McClarkin expressed grave concerns about the updated estimates for glass, labelling them an ‘extremely worrying step’ that veers off course.
Emma McClarkin said: “Government must be clear-eyed that these proposed higher additional costs on brewers would land an extra £160m or 5p per glass bottle on the sector. This could force some brewers to leave the glass bottle market.
Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Company Profile – free
sample
Your download email will arrive shortly
We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form
By GlobalData
“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.
The BBPA’s chief executive urged continued scrutiny of these fees to ensure they are equitable and sustainable, emphasising the role the sector plays in bolstering the UK’s economy and job market.
The draft base fees are derived from a consensus on the final proposed model scenario for total disposal costs slated for recovery through EPR in 2025. These costs are currently subject to rigorous quality assurance evaluations.
Under new regulations, all UK entities involved in importing or supplying packaging will potentially bear responsibility for managing and financing the disposal of packaging waste.
