The UK’s biggest drinks producers and grocery retailers have urged the Welsh Government to appoint Exchange for Change as its Deposit Return Scheme administrator.
A joint open letter argues that appointing Exchange for Change as scheme administrator is now the only realistic route to delivering Wales’s Deposit Return Scheme (DRS) on schedule.
Exchange for Change is the industry-led Deposit Management Organisation (DMO) for the DRSs in England, Scotland, and Northern Ireland.
The warning comes from the bosses of major retailers and alcohol, soft drinks and bottled water manufacturers, including Coca-Cola Europacific Partners, PepsiCo, Tesco, Sainsbury’s, Carlsberg-Britvic, The Co-operative Group, Asahi UK and Highland Spring.
With less than 15 months until the scheme’s October 2027 launch, the industry executives warn that a decision is needed before the end of July to ensure the DRS remains on schedule.
In the open letter, which was coordinated by the British Soft Drinks Association (BDSA), the executives caution that any delay beyond the end of July could lead to higher prices, reduced consumer choice, and increased uncertainty for businesses across Wales.
The BSDA has previously warned that requiring full-scale glass collection at every return point from day one of the scheme could add around 50p to the cost of every drink sold in a glass bottle in Wales.
Wales confirmed it will include glass in its DRS after the UK Government granted an exemption from the Internal Market Act.
However, there will be a four-year transition period where no deposit is charged on glass containers to manage interoperability with the other UK schemes. Glass containers will also be exempt from labelling during this period.
The schemes in England, Scotland, and Northern Ireland cover PET plastic, steel, and aluminium drinks containers, but exclude glass.
In the joint open letter, the bosses also say that appointing Exchange for Change as scheme administrator is now the ‘only realistic route’ to align Wales’s DRS with the other UK schemes.
The Welsh Government previously rejected Exchange for Change’s application to become its DRS administrator when there was a Labour majority.
However, Plaid Cymru has since formed a minority government following the Senedd elections in May.
According to multiple reports, Exchange for Change was the only organisation to have submitted an application during the previous process.
Commenting on the letter, Andy Bagnall, Director General, British Soft Drinks Association, said: “Industry has a lot of sympathy with the new Welsh Government, which has inherited the delays to the Welsh DRS from its predecessor.”
“There is still time to deliver a scheme that works for shoppers, businesses and retailers alike, but that window is closing rapidly.”
Bagnall continued that appointing Exchange for Change is the ‘quickest and most practical route’ to launching the scheme by October 2027.
He also called for a ‘pragmatic approach’ to including glass in the scheme, claiming that including full-scale glass collection at launch is ‘unaffordable’ for Welsh businesses and consumers.