A UK-wide problem

All online sellers must register

Scotland’s Deposit Return Scheme has led to wailing and gnashing of teeth among Scots merchants. But it also spells problems for drinks retailers in other parts of the UK.

Anyone selling online to Scottish consumers needs to sign up to the DRS. But rather than engaging in the expensive and complicated task of compliance, many English and Welsh merchants may simply choose to give up their Scottish customers.

The Scottish Environment Protection Agency website states that all online retailers must “only sell drinks to consumers in Scotland from registered producers”. Retailers will also be under legal obligation to “charge the 20p deposit when selling a drink to a consumer in Scotland”, while also making it “clear to the customer that the drink is part of the scheme and a deposit applies”.

“SEPA are very clear that non-Scottish articles must not be sold to consumers in Scotland. It would be an offence to do so. There seems to be little or no guidance to English firms, especially small ones, on how to navigate this.

“We have three options,” he continues. “One, we exclude Scottish customers and refuse to supply them. Two, we only allow Scottish customers to buy selected, approved products; or three, we register all our products at great cost and still have to come up with a way of charging Scottish customers the extra 20p.

“I fear we are more likely to take the first option. The poor customers in Scotland are going to get a rough deal.”

3cl Campari

3cl sweet red vermouth

6cl Prosecco

Simply pour the ingredients into an old-fashioned glass containing ice and stir.

Whether or not retailers outside of Scotland have to operate a takeback service for the empty containers is currently under review by the Scottish government. Richard Davis at DBM Wines in Bristol says: “We’ve been thinking of the best way of dealing with it. It’s particularly tricky as some of our suppliers will already have their products registered with SEPA, others will not, including anything we ship direct.

London merchant Theatre of Wine says it may also stop e-commerce to Scotland. Director Jason Millar explains: “If this goes ahead, we would simply end web sales to Scotland. It is a shame, but the value of sales to Scotland would in no way justify the amount of time, effort and admin required to meet the new regulations.

“This will limit the choice and variety available in Scotland because of incompetent and unworkable legislation from the Scottish government.”

At the time of going to press, the deadline has been reached for producer registration but, as industry bodies continue to seek clarification, there is hope the entire scheme will be abandoned. SNP candidates to succeed Nicola Sturgeon as first minister have hinted at a delay.

SEPA was unable to answer questions put to it by The Wine Merchant covering the scheme’s VAT implications, checks and penalties and support for small businesses.