Cashflow support to help drinks producers prepare for DRS

Circularity Scotland has announced £22m of cashflow support measures to help Scotland’s drinks industry prepare for the introduction of Scotland’s deposit return scheme.

The package includes:

• Up front charges removed for lower sales volumes
• Improved payment terms for lower sales volumes
• Simple labelling option for niche products, alleviating administrative burden

This lifeline is particularly designed to help SMEs, following concerns raised about the impact of the scheme on their business’ cashflow.

David Harris, chief executive of Circularity Scotland, said: “This announcement is further evidence of how we are continuing to innovate and identify additional ways to mitigate the pressure on businesses.

“We know that smaller producers in particular have been concerned about the cashflow impacts of the scheme, and these measures will address those concerns. “

The Scottish Wholesale Association has welcomed the news, but raises further concerns: “The SWA (Scottish Wholesale Association) welcomes Circularity Scotland’s announcement on the removal of upfront charges and retrospective payment terms for small producers and importers, including wholesalers.

“We’re pleased Circularity Scotland and the Scottish Government have listened to our concerns about the cash flow issues facing businesses. However, many concerns remain unanswered around price-marked packs, GS1 compliant barcodes, bonded warehouses and other issues.

“SWA will continue to push for an 18-month grace period to allow those small producers/importers to prepare for DRS as well as for a de minimis exemption for low volume products.

“There are still too many unanswered questions for producers and importers to sign up to the DRS in a week’s time. The 28th February deadline must be shelved in writing by the Scottish Government so businesses across the supply chain still have the confidence to keep trading in Scotland.”