Suntory Q&A: Lessons From Ireland’s Deposit Return Scheme

The UK is facing a major change in its recycling infrastructure with the launch of its deposit return scheme (DRS) in 2027.

With this scheme, a deposit will be placed on certain drinks containers that can be claimed back when the container is returned to a collection point.

This can help incentivise recycling behaviours, aiming to cut down on the estimated 6.5 billion single-use drinks bottles and cans that are thrown away instead of recycled.

Many companies across the beverage industry are working on building a supply chain that supports the introduction of DRS.

One of these companies is Suntory Beverage and Food GB&I (SBF GB&I), which produces popular British drinks including Lucozade and Ribena.

Fraser McIntosh is the Head of External Affairs and Sustainability at SBF GB&I.

In his role, he focuses on driving the business to reach its ambitious carbon emissions reduction targets while navigating a turbulent policy landscape.

Fraser shares his insights with Sustainability Magazine.

What work has SBF GB&I done around DRS?

A DRS is a long-standing ambition of the soft drinks industry and as a producer of some of the UK’s most recognised drinks brands, we have a responsibility to help ensure a DRS works effectively across the entire value chain. 

We’ve been working with all four governments across the UK to ensure the schemes introduced deliver on our shared ambitions of a circular economy for soft drinks containers. 

Our current focus is engaging with the new Welsh Government and Senedd to help us deliver an effective and simple DRS across all four nations in 2027. 

We want to work with the Welsh Government to deliver ambitious, practical policy that drives higher recycling rates, cleaner communities and a truly circular economy. 

For the scheme to have the best chance of launching on time and delivering change, we are urging Welsh government to align the scheme with the rest of the UK by:

1. Amending the regulations to remove glass as a priority
2. Delaying the inclusion of reuse requirements until the scheme is operational and a full impact and environmental assessment has been carried out.

This will make the scheme clearer for consumers, eliminate complexity, and make it simpler for businesses to implement - maximising return rates and environmental benefits from day one. 

We also continue to work closely with our customers and retailers to help them prepare for the changes expected and maximise the opportunities that DRS will create for businesses.

What is SBF GB&I’s whitepaper on the Irish DRS?

Ahead of the launch of a DRS in Ireland in 2024, we worked in collaboration with the Irish Government from the very earliest stages to shape the development of an industry-led scheme as part of a wider industry coalition – chairing and sitting on several industry working groups. 

From the beginning, this coalition involved all the relevant parts of the industry sharing their expertise, including retailers who are required to host return points.

Using our learnings from the introduction of the Irish DRS, we published a study aimed at providing early insight and reassurance on how businesses can embrace and thrive through the introduction of DRS. 

We visited retailers to see how the scheme was introduced, how any problems were ironed out and how this might impact the introduction of DRS in the UK. 

Our report moved from our initial search and theory to lived experience, helping policymakers and retailers prepare for real behavioural change rather than hypothetical scenarios.

What are the main findings from the Irish DRS?

Our research into the shopper reaction to Deposit Return Schemes shows that behaviour can be split into three distinct phases: surprise, review and reset. 

Within seven weeks in our controlled study, redemption rates reached 88%, demonstrating how quickly new routines can form. The first phase is the surprise phase. This lasts around three weeks. 

Shoppers who aren’t already aware of the legislation will be surprised at a potential increase in price at the point of purchase, and that they are being asked to return their container to earn back that increase. To ensure shopper surprise doesn’t result in lost sales opportunities, and that DRS helps to encourage the right behaviours, communication is crucial. 

The second, is the review phase, which lasts around three to four weeks. Shoppers will learn new routines and make adaptations. Some consumers will learn how to manage the scheme to maintain their usage. For others, the dynamics of category usage will change as they adapt to new shopping habits. 

The final phase is the reset phase. If the ‘Surprise’ phase (and the lead up to it) is all about education of shoppers and marketing stores as a DRS destination, the ‘Review’ and ‘Reset’ phases are real opportunities to capitalise on changing behaviours commercially, which will consist of both new routines and choices. 

The key insight is that while there is initial disruption, habits stabilise rapidly and retailers who communicate clearly and plan effectively can turn that transition into a commercial opportunity.

What can the UK learn from Ireland’s DRS adoption?

The early creation of an industry-wide working group was critical to the implementation of the Irish scheme. This enabled the Irish Government to appoint a capable scheme administrator in a timely manner, who was then accountable for delivering the scheme and determining key aspects of it, including the return handling fee and management of its contracts with suppliers. 

With Exchange for Change now appointed as the UK scheme’s Deposit Management Organisation, we are urging the new Welsh Government to appoint Exchange for Change as their DMO urgently so we can all work closely together. Experience from Ireland also demonstrates DRS regulations must be detailed and prescriptive, so there is no ambiguity that can create confusion and delay. 

Scotland’s regulations, for example, did not provide such clarity and also prescribed for the collection of glass – at odds with a planned English/Northern Irish scheme. This gave rise to significant complexity for producers, retailers, and consumers too, along with increased costs of the scheme, and political disagreements between nations within the UK. 

This is why we believe it is so important for Wales to align its scheme to the rest of the UK so we can reduce complexity, make it simple for businesses to implement and maximise return rates from consumers from day one.

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What are the benefits and limitations of DRS?

A well- designed DRS can deliver benefits for everyone, helping to reduce litter and strengthen the circular economy while increasing access to high-quality recycled material that supports progress toward net zero. 

As a major soft drinks producer, we understand the significant role we play in the UK’s net-zero ambition and in building a circular economy for the long-term. The current challenge we face with DRS is alignment with Wales. The previous Welsh Government’s announcement that it would no longer be joining a UK-wide DRS, choosing instead to pursue its own ambitions on a different timeline, has created complexity and confusion for supply chains and consumers. 

At the very least, if there are to be separate schemes, they must be fully interoperable, with a single DMO, one material scope and aligned deposit levels. This would ensure consistency, minimise complexity and reduce the risk of fraud, making a scheme work for shoppers, stores and producers alike. 

However, as currently planned, Wales will be going it alone by including glass and the former Government rejected Exchange for Change’s application to be DMO. We urge the new Welsh government to take this opportunity to review the current approach and ensure the scheme can be delivered in a way that avoids unnecessary delay. 

By governments and businesses working together we can continue making progress towards a circular economy across the entire UK.

What could the future look like for the UK with DRS?

DRS has the potential to be one of the most significant shifts in UK packaging policy in a generation, but success will depend on clarity, coordination and collaboration across all nations of the UK. 

DRS will stimulate a circular economy for soft drinks containers, ensuring precious rPET is turned back into bottles and aluminium back into cans so that food-grade quality packaging can be used again and again. 

This circularity mindset will ultimately help the whole category to reduce litter and its CO₂ emissions. For it to be successful in these aims, interoperability between devolved nations is key.