Deposit return schemes will see reverse vending machines appear in shops across the UK

Operator announced to deliver UK deposit return schemes – what the experts say

UK Deposit Management Organisation – or UK DMO for short – has been named as the official operator of the new UK deposit return schemes (DRS) for packaging, in England, and Northern Ireland, although the appointment of UK DMO as administrator in Scotland is still subject to the approval of the Scottish Parliament.

The DRS for single-use plastic and metal drinks containers will have UK DMO in place as a business-led, not-for-profit organisation to oversee delivery of what is being touted as one of the most significant environmental infrastructure programmes in a generation.

Deposit return schemes, which will encourage people to recycle their plastic and cans at dedicated facilities across the UK in order to reclaim a deposit paid on purchase of that product, are expected to cut litter, boost recycling, and reduce carbon emissions.

UK DMO now plans to begin engaging with partners including the three governments, businesses such as drinks producers and retailers, and consumer and environmental groups to design an appropriate scheme.

The UK DMO board includes experienced figures from companies including Shepley Spring, Radnor Hills, Coca-Cola Europacific Partners, Heineken UK, Lidl, Tesco and Co-op.

In a joint statement, the UK DMO board said: “DRS is an opportunity to deliver a transformational step forward in the circular economy in the UK and the appointment of the DMO is a major milestone in that journey.

“We don’t underestimate the scale of the challenge, but our aim is simple – to build a system that’s fair, efficient and easy to use. Our work is already underway, and we’ll be working closely with governments, businesses of all sizes, environmental groups and consumer bodies to move forward as quickly as possible.”

What the experts say…

British Soft Drinks Association director general Gavin Partington: “This appointment marks a key milestone in realising the opportunities of a more circular economy, driving £1.13 billion of industry investment over the next three years and creating more than 4,000 jobs across England, Scotland and Northern Ireland.

“The British soft drinks industry looks forward to playing our part in ensuring successful delivery of a DRS by October 2027.”

British Retail Consortium director of food & sustainability Andrew Opie said: “A well-designed DRS, with retail at its heart, will be an important contribution to delivering a circular economy in the UK.

“We welcome today’s appointment of the DMO to oversee the DRS. Retailers and the BRC have been central to the DMO’s development, committing significant funding, time and resource to get to this point and we are pleased that our voice will continue to be heard as the initiative progresses.”

Natural Source Waters Association general manager Kinvara Carey: “This announcement is great news for all involved. The DMO will have a clear focus on developing the most efficient and effective scheme to reduce littering and enable more drink containers to stay in the loop and be given another life.”

Association of Convenience Stores CEO James Lowman: “This is a major step towards the delivery of a DRS for the UK. For the scheme to deliver a step change in recycling rates, local shops will need to play an integral part, offering a convenient network of return points both for local residents and people consuming drinks on the go.

“We are looking forward to working with the newly-formed DMO to ensure that the scheme is operationally viable and attractive for retailers to take part in. With less than two-and-a-half years before launch, it is vital that retailers can make informed choices about how to take part in the scheme, and we are committed to providing the information and advice they need.”

British Beer and Pub Association CEO Emma McClarkin: “Our sector is committed to sustainable packaging and a more circular economy and we are proud to have been involved in the development of an industry-led, not for profit, organisation to run the deposit return schemes.”

Federation of Wholesale Distributors and the Scottish Wholesale Association jointly: “We are pleased the wholesale sector is represented on the DMO Board, ensuring our voice and the interests of wholesalers operating across the UK, is heard at the highest level. Our engagement will be constructive and grounded in the operational knowledge and experience of our members.”

Northern Ireland Food and Drink Association executive director Michael Bell: “Food and drink manufacturers want to see the smoothest possible operation for consumers, for industry, and for delivering for the environment. In Northern Ireland we have seen how DRS has developed in the Republic of Ireland and we have been working with government and industry colleagues on the development of a similar scheme for the UK.”

Scottish Grocers’ Federation CEO Dr Pete Cheema: “Our engagement with DEFRA and the advisory council to establish the DMO has been positive, and we look forward to working closely with the new administration team in the coming months and years.

“Now that the DMO is in place, it provides an important opportunity for our members to address any concerns they have as early as possible and help build confidence in the scheme. Making sure that retailers have all the information they need about the options available to them.”

Lidl GB on LinkedIn: “We’re also proud to share that Lidl GB director, Robert Beaumont, has been appointed to the UK DMO board in addition to his role at Lidl GB. He will represent the views and experiences of large retailers as this initiative progresses.”

Coca Cola Europacific Partners vice president of corporate affairs, comms & sustainability Julian Hunt on LinkedIn: “I am honoured to have been appointed as one of the directors of UK DMO, which is a business-led, not-for-profit organisation, committed to delivering a scheme that works for companies, consumers and the environment.

“Each director has been nominated by their relevant trade associations to represent different sectors and sizes of business, and I was proud to be nominated by British Soft Drinks Association to ensure the views of producers inform our work.”

Polytag CEO Alice Rackley: “The appointment of the DMO is a positive and much-needed step forward for the UK’s DRS. It’s certainly encouraging to see momentum returning and some real progress being made towards something that we know will deliver clear environmental and economic benefits across the UK – the unified system we’ve been waiting for.

“With the announcement of a board made up of digital-focussed organisations such as Co-op, Tesco and Coca-Cola, it’s clear we are on the path towards a flexible, accessible model that can include a digital component. These organisations have already demonstrated a strong interest in digital solutions, with Coca-Cola using serialised codes for traceability in other global markets and Co-op recently supported our industry-led letter to government calling for a digital DRS approach. Combined with the support from the major retailers and brands we work with, the direction of travel is undeniable, and the industry should take a positive stance. Things are moving forwards, and the foundation is being laid for a DRS, with digital in mind, that is fit for purpose.

“Furthermore, this move offers a potential path towards resolving the current challenge around Wales’ involvement and this moment could serve as the bridge for renewed cooperation and progress.

“From Polytag’s point of view, as the world moves increasingly towards digital solutions, GS1 standards will be essential. As a GS1-approved partner working closely with global standards organisations, we are ready to support brands and the DMO in delivering a system that is interoperable across the UK, grounded in real-world data and that is built to last. We just hope this doesn’t follow the same path as EPR, where momentum has stalled and funding won’t deliver real recycling benefits until well into the next decade.

“There is a real opportunity to ensure that money raised goes directly into improving recycling system and we’re optimistic that this new structure can make that happen. So, let’s get on with it!”

Wrap director of insights & innovation Claire Shrewsbury: “Wrap supports a well-designed DRS as part of the UK’s recycling.

“It is critical the DMO convenes the right parties to deliver an effective and engaging DRS system that people will want to use. A significant behaviour change campaign based on the insights around existing recycling engagement and from other countries must support its introduction, to ensure people are aware of, and clear how to use this form of recycling alongside existing collections. We are happy to play our part in supporting the introduction of DRS to citizens in this way.”

Read about the Republic of Ireland DRS on Green Retail World

[image credit: Sainsbury’s]

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