The UK’s biggest drinks producers and grocery retailers have united to urge the new Plaid Cymru Government in Wales to act now to keep Wales’s Deposit Return Scheme (DRS) on track and affordable.
In an open letter, they warn that further delay beyond the end of July could mean “higher prices, reduced consumer choice and mounting uncertainty for businesses across Wales.”
The warning comes in the letter to the Welsh First Minister, Rhun ap Iorwerth MS, signed by the bosses of major retailers and alcohol, soft drinks and bottled water manufacturers, including the top UK Executives of Coca-Cola Europacific Partners, PepsiCo, Tesco, Sainsbury’s, Carlsberg-Britvic, The Co-operative Group, Asahi UK and Highland Spring, amongst many other major brand signatories.
The bosses argue that appointing Exchange for Change as scheme administrator is now the only realistic route to delivering Wales’ DRS on time and aligned with the scheme already being established across England, Scotland and Northern Ireland by the same organisation.
”Without a scheme administrator in place soon, commercial and operational preparations will become significantly harder.”
With less than 15 months until the scheme’s October 2027 launch, the industry says a decision is needed before the end of the month. Without a scheme administrator in place soon, commercial and operational preparations will become significantly harder, the letter advises, driving up costs that businesses warn could ultimately be passed on to Welsh consumers.
Fears have previously been raised that requiring full-scale glass collection at every return point from day one could add around 50p to the cost of every drink sold in a glass bottle – a burden that would fall hardest on local drinks manufacturers and smaller Welsh breweries reliant on glass packaging.
There is also concern that, if a functioning return network is not ready in time, Welsh consumers could be required to pay deposits on eligible containers without a practical way of getting that money back.
The appointment of Exchange for Change across England, Scotland and Northern Ireland in May 2025 unlocked more than £1bn of industry investment, with the soft drinks sector providing the majority. It’s also expected to support more than 4,300 jobs while helping to create a more circular economy.
A spokesperson for CCEP said: “A well-run DRS reduces litter, boosts recycling rates, reduce carbon emissions and create a cleaner environment for communities – every week without a scheme administrator for the proposed Welsh scheme makes delivering those benefits more challenging.
“Businesses want to focus on building a scheme that genuinely serves Welsh consumers and the environment. Therefore, we respectfully encourage the Welsh Government to move forward appointing a scheme administrator before recess.”
A spokesperson for The Co-operative Group, added: “Action to protect the environment is a consistent priority for Co-op members, and we’ve long welcomed a DRS that increases recycling rates and decreases litter.
“We want to see accelerated progress towards a more circular economy, to protect the range and cost of drinks available to consumers and to continue to serve communities through our stores right across Wales - all of which can only be achieved if the Welsh Government moves with pace and pragmatism to appoint Exchange for Change without any further delay.”
Andy Bagnall, Director General, British Soft Drinks Association, concluded: “Industry has a lot of sympathy with the new Welsh Government which has inherited the delays to the Welsh DRS from its predecessor.
“There’s still time to deliver a scheme that works for shoppers, businesses and retailers alike…”
“There’s still time to deliver a scheme that works for shoppers, businesses and retailers alike, but that window is closing rapidly. Appointing Exchange for Change offers the quickest and most practical route to delivering the scheme on time and alongside the rest of the UK.
“That also means taking a pragmatic approach to including glass in the Welsh scheme and not repeating the mistakes of the previous administration by trying to include full scale glass collection on day one, which is simply unaffordable for Welsh businesses and consumers.”
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