DRS: a retailer’s guide

A warm welcome to SLR’s DRS Guide for Scotland’s local retailers. Straight off the bat, it’s important to note that this supplement has been created purely as a practical guide for retailers as they begin the task of trying to get themselves ready for DRS in time for the go-live date of 16th August.

So inside you won’t find any discussion of the perceived rights or wrongs of DRS models in general, or of this Scottish DRS model in particular. This supplement is purposefully not provided as a platform for airing the many opinions that have already been aired on countless occasions on the plethora issues that still vex every link in the supply chain.

No, instead we have attempted to restrict ourselves to the known facts, the unavoidable realities. Unfortunately, as we all know, those remain very thin on the ground.

We had perhaps naïvely assumed that with just six months to go until D-Day, this guide would be focusing more on the positive aspects of DRS: how it will help enhance Scotland’s global reputation as a progressive nation; how retailers should embrace DRS and use it as a launching pad for establishing themselves as the sustainability champions in the many communities they serve across Scotland; and how retailers can leverage DRS to grow footfall, sales and profits using advice from other countries.

Sadly, we haven’t quite reached that stage yet. In fact, we’re nowhere near that stage and, if anything, the next few days and weeks look set to thicken the mud rather than help it settle.

If your business makes or imports drinks for the Scottish market, there are producer obligations that you will need to comply with. This includes registering for the scheme by 1 March 2023.

As I write this very article, Lanarkshire retailer Abdul Majid’s legal challenge on handling fees has just gotten underway in the Court of Session. A few days ago Humza Yousaf was sworn in as Scotland’s new First Minister, having already committed in his leadership campaign to amending or even postponing DRS.

So, at SLR, we find ourselves in the uncomfortable position of having to accept that, between the time that this supplement goes to press and the time in lands on your doorstep, much of the content may already be outdated or redundant. The new First Minister undoubtedly has some important issues to deal with in the early days of his new role, but DRS won’t be too far from the upper end of his agenda.

We’re also waiting on some clarity around the much-discussed issue of whether or not the UK Government will grant Scotland an exemption from the Internal Markets Act. Secretary of State for Scotland Alister Jack has told the press that the UK Government will not grant the exemption which effectively means that the DRS regulations could not be enforced for single-use packaged drinks from elsewhere in the UK. In other words, the 20p deposit could only be applied to products bottled in Scotland.

This would clearly put Scottish producers at a competitive disadvantage but it would also result in mass confusion in stores across Scotland. How many angry scenes will take place as retailers try to explain to consumers why they can get their deposit back on some of their containers, but not others?

And these are just some of the unresolved ‘big picture’ issues. There’s also a whole raft of unresolved smaller practical issues like how often Biffa will collect from stores.

The unpalatable truth is that, with only months to go, there are still more questions than answers – which makes our task of attempting to provide retailers with a comprehensive guide to DRS all but impossible. Just like retailers themselves however, we have no choice but to carry on and do it anyway.

As it stands, the official position remains that we will go live on the 16th of August, as reiterated ad nauseam by Lorna Slater, Minister for Green Skills, Circular Economy and Biodiversity of Scotland.

In that case, the entire supply chain has to proceed on that assumption and get ready as best it can –despite very few believing that DRS will go ahead as planned. It may go ahead as planned, purely in terms of the date of implementation, but even if it does, it’s unlikely it will go head in a form that bears much resemblance to the original plan, the original legislation.

So. Just like all of you, we at SLR are doing what we can to help you prepare. We wish you the very best of luck and through the pages of SLR, we will continue to keep you up to date with developments as they unfold.

ANTONY BEGLEY PUBLISHING DIRECTOR, SLR