Extended Producer Responsibility: what it means for the alcohol industry
For those in the alcohol industry already wrestling with duty rates, sustainability concerns and the ever-tightening grip of regulation, here comes another corker: Extended Producer Responsibility (EPR) for packaging. The post Extended Producer Responsibility: what it means for the alcohol industry appeared first on The Drinks Business.
For those in the alcohol industry already wrestling with duty rates, sustainability concerns and the ever-tightening grip of regulation, here comes another corker: Extended Producer Responsibility (EPR) for packaging.
The scheme aims to shift the financial burden of packaging waste away from taxpayers and squarely onto those who place packaged goods on the market. So far so good – the more packaging you produce, the more you pay.
However, for an industry that thrives on presentation — be it an ornate whisky box, a chic Champagne bottle, or the reassuring heft of a craft beer can — EPR will have profound implications. So, let’s unpack the details and see what’s at stake for producers, importers and retailers alike.
Source: WSTA
The scheme aims to shift the financial burden of packaging waste away from taxpayers and squarely onto those who place packaged goods on the market. So far so good – the more packaging you produce, the more you pay.
However, for an industry that thrives on presentation — be it an ornate whisky box, a chic Champagne bottle, or the reassuring heft of a craft beer can — EPR will have profound implications. So, let’s unpack the details and see what’s at stake for producers, importers and retailers alike.
Who’s affected?
If you are a UK-based business with an annual turnover of at least £1 million and you handle more than 25 tonnes of packaging per year, congratulations — you’re on the hook. According to the Wine and Spirit Trade Association (WSTA), companies with a turnover of over £2 million and selling more than 50 tonnes of in-scope packaging are considered Large Producers and must report and pay EPR. Smaller producers, by contrast, are only required to report data. Importers, including agents or UK sales offices, can also be implicated, making it crucial to identify the obligated party for the produce you sell. EPR applies to those who:- Produce or import packaged alcoholic beverages
- Own a private-label drinks brand
- Place products into packaging in the UK market (think bottlers and contract packers)
- Operate an online marketplace selling alcohol from non-UK producers
- Hire or loan reusable packaging (kegs, anyone?)
- Even if you’re merely importing foreign wines, beers, or spirits, you may still be obligated to comply with EPR if the products come pre-packaged.
What you need to do
From 2023 onwards, businesses have been required to report their packaging data. By 2025, however, the financial teeth of EPR will sink in, requiring affected companies to:- Pay a waste management fee based on the recyclability and disposal costs of their packaging.
- Cover the costs of scheme administration (bureaucracy, after all, is thirsty work).
- Report packaging data biannually, detailing the weight, material, and type of packaging.
- Obtain Packaging Waste Recycling Notes (PRNs) or Packaging Waste Export Recycling Notes (PERNs) to meet recycling obligations.
Key dates to watch
- April 2025: EPR fees accrue based on 2024 data.
- July 2025: Final fees published.
- October 2025: Invoices for fees issued.
- October 2027: PET, steel, and aluminium drinks containers excluded from EPR and instead subject to the Deposit Return Scheme (DRS) in England, Northern Ireland, and Scotland.
The cost of glass
Glass, though endlessly recyclable, carries high production emissions, while complex multi-material packaging (think mixed plastics, metals, and card) is harder to process. The financial penalty for such packaging will be higher, incentivising a shift towards more sustainable alternatives. Expect to see a renewed interest in lightweight glass, recyclable aluminium, and streamlined packaging. According to The Telegraph, industry leaders warn that EPR will hit glass particularly hard, with critics branding it a “glass tax.” The British Beer and Pub Association (BBPA) claims fees for glass packaging could be 49 times higher than those for other, less recyclable materials, making bottles significantly more expensive than aluminium cans. This has led some brewers to predict the eventual demise of the beer bottle, with Duncan Sambrook of Sambrook’s Brewery warning that “the EPR will accelerate the decline in the variety of bottled beers that you see on the shelves and increase consumer prices.”Business waste & hospitality sales
According to WSTA, Defra originally promised that hospitality waste would not be subject to EPR fees. However, Defra’s current exemption process only applies to direct sales by the glass, which must be evidenced. Sales by the bottle, or via wholesalers, will be subject to EPR fees, potentially distorting the market. Businesses must assess their exposure to these costs and their impact on operations.The refill revolution?
One potential silver lining is the encouragement of reusable and refillable formats. With the rise of bulk wine dispensers, reusable beer growlers and even pioneering zero-packaging spirits retail, EPR could accelerate a shift away from single-use packaging. Producers who embrace refillable solutions may find themselves not only ahead of the regulatory curve but also appealing to a more environmentally conscious consumer base.Recyclability & future costs
From Year 2 of EPR, fees will be modulated — meaning less recyclable packaging will incur higher costs. The WSTA warns that obligated businesses “should urgently refer to Defra’s assessments to reduce their exposure to these punitive fees.”The financial impact: a case study
EPR is set to be a costly exercise, and the financial strain is already being felt. Steve Finlan, CEO of The Wine Society, told db: “The upcoming duty increase is not an isolated financial strain for The Wine Society. Other escalating costs include £1.3 million linked to the government’s Extended Producer Responsibility scheme, which places additional demands on packaging producers. The organisation also faces a £400,000 increase in National Insurance contributions and a further £400,000 in rate rises as tapering relief ends. Additionally, the Society has committed to a staff pay review at an added cost of £400,000. Together, these factors represent a £5 to £5.5 million increase in costs for a business that was predicted to make £2 million in profit in 2024.Reporting & deadlines
For large producers:- 1 October 2024: Report January–June 2024 data.
- 1 April 2025: Report July–December 2024 data.
- 2025 onwards: Biannual reporting, with fees payable based on 2024 data.
- 1 April 2025: Report all 2024 data in one go.
| Producer Threshold | Turnover | |||
|---|---|---|---|---|
| Packaging Tonnage | ≤£1m | >£1m-£2m | >£2m | |
| Packaging Tonnage This is the aggregated total from ALL packaging activities, including selling, as defined by the Data Regulations | <25 tonnes | No obligation | No obligation | No obligation |
| 25-50 tonnes | No obligation | Small producer | Small producer | |
| >50 tonnes | No obligation | Small producer | Large producer | |
