What is the Deposit Return Scheme (DRS)?
The Deposit Return Scheme (DRS) is a government-backed initiative designed to reduce litter and increase recycling rates for drinks containers. The scheme requires drinks retailers to charge a deposit on certain drinks containers, which is then refunded to the customer when they return the empty container to a designated collection point.
DRS applies to all PET plastic bottles, glass bottles, and steel/aluminium cans that are between 50ml and 3 litres in size and are used for carbonated soft drinks, still drinks, and alcoholic drinks. The deposit amount is set at 20p per container and is added to the price of the drink at the point of sale.
Customers can return their empty containers to any registered collection point, such as a reverse vending machine, a shop, or a depot. The returned containers are then collected, sorted, and recycled. The scheme aims to encourage a circular economy and reduce the amount of waste generated.
DRS will first be rolled out in Scotland, with plans to activate across the rest of the UK in 2024.
When will the DRS scheme be rolled out across Scotland?
The Scottish government first proposed the Deposit Return Scheme (DRS) in 2017, as part of their broader strategy to tackle climate change and improve resource efficiency. In May 2019, the Scottish Parliament passed legislation to establish the DRS, with the aim of implementing it by 2022. However, due to the COVID-19 pandemic, the timeline was delayed, and the DRS is now expected to be rolled out in July 2022.
As per the current timeline, from July 2022, retailers in Scotland will be required to charge a 20p deposit on drinks containers made of glass, plastic, or metal, which will be refunded when the container is returned to a designated collection point. The scheme will cover all sizes of drinks containers, including single-use and multi-use, with the exception of containers for milk and dairy alternatives.
Drinks manufacturers and importers will have to ensure that their products comply with the new regulations, which will require changes to packaging designs, labelling, and barcoding. They will also need to work with collection and recycling partners to ensure that the deposited containers are collected, sorted, and recycled appropriately.
Does the Scottish Deposit Return Scheme mean that drinks containers must be labelled differently in Scotland versus England?
Yes, the Scottish Deposit Return Scheme (DRS) requires certain drinks containers to be labelled differently in Scotland compared to England. This is because the deposit return systems in Scotland and England are separate schemes, and the labels are used to indicate which containers are part of the Scottish DRS and therefore eligible for a deposit refund.
In Scotland, drinks containers that are included in the DRS must display a “Scotland DRS” label and a unique barcode or QR code. This label indicates to retailers and customers that a deposit has been charged on the container and that it is eligible for refund when returned to a designated collection point in Scotland.
In contrast, drinks containers sold in England are not required to display a deposit label, as there is currently no national deposit return scheme in operation. However, a deposit return scheme is planned for England and Wales, and it is likely that similar labelling requirements will be introduced to indicate which containers are eligible for a deposit refund.
It’s worth noting that drinks manufacturers and retailers operating in Scotland will need to comply with the Scottish DRS labelling requirements, regardless of where their products are produced or distributed. This means that some products may have different labels depending on whether they are sold in Scotland or other parts of the UK.
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Does it mean then, that Scottish beverage companies need to be able to segment their customers to make sure that their products are correctly labelled for the end customer?
Do they need to manage multiple label types?
Yes, Scottish beverage companies will need to be able to segment their customers and manage multiple label types in order to comply with the Scottish Deposit Return Scheme (DRS). This is because different labels will be required for drinks containers sold in Scotland compared to those sold in other parts of the UK.
Scottish beverage companies will need to ensure that the drinks containers they supply to retailers in Scotland are correctly labelled with the “Scotland DRS” label and the unique barcode or QR code required by the scheme. They will also need to ensure that the deposit amount is correctly charged at the point of sale and that the refund is correctly processed when customers return their empty containers to a designated collection point.
At the same time, Scottish beverage companies will need to ensure that the drinks containers they supply to retailers in other parts of the UK do not have the “Scotland DRS” label, as this label would be misleading and confusing for customers outside of Scotland. Instead, they may need to use different labels or packaging to differentiate between products sold in Scotland and those sold elsewhere in the UK.
In order to manage these multiple label types, Scottish beverage companies may need to invest in systems and processes that allow them to track and manage their products across different markets. This could include tools for customer segmentation, labelling and packaging management, and inventory tracking and management.
How can Aforza help?
The implementation of the Scottish Deposit Return Scheme (DRS) requires drinks manufacturers and importers to ensure that their products comply with the new labelling and barcode requirements for products sold in Scotland. This involves managing multiple label types to cater to different customer segments, which can be a complex and time-consuming process.
Aforza, as a cloud-based solution, can rapidly support companies with their DRS implementation by providing real-time segmentation capabilities that enable them to segment customers and outlets based on their location and other relevant attributes. This means that different product assortments, pricing, and promotions can be run by segment type, allowing companies to meet the specific labelling requirements for products sold in Scotland.
Aforza’s real-time capabilities also ensure that companies can quickly respond to changes in customer demand and adjust their labelling and barcode requirements accordingly. This helps to streamline the DRS implementation process and minimize the risk of errors or delays. Additionally, Aforza provides real-time visibility into field performance, enabling companies to track the impact of the DRS on their business and adjust their strategies as needed.