Circularity Scotland earmarks £22 million to support beverage producers

Circularity Scotland, a body dedicated to encouraging recycling and reuse of products in Scotland, will provide funding of nearly £22 million to help local beverage manufacturers, distillers, brewers and importers break even. The financial injection will be used to prepare for the new returnable packaging law that will soon come into force.

This package contains among other measures the elimination of upfront charges for lower sales volumes, improved payment terms for lower sales volumes as well as the option of simple labeling for specialized products, easing the administrative burden.
In order to alleviate the financial situation of small companies affected by the new political regime, who had previously expressed their uncertainty regarding this situation, a plan was implemented especially designed to solve their problems.

In an attempt to mitigate fears among producers, Circularity Scotland has deleted the upfront payments for one and the monthly cost for manufacturers producing a maximum of three million units annually. In addition, the initiative will also provide two months’ interest-free credit on deposits and commissions up to the same limit to reduce the financial pressure on these producers.

Circularity Scotland also announced that it will allow manufacturers to place self-adhesive barcode labels on products whose work does not exceed 25,000 units per year. This will provide a simple and straightforward administrative solution for independent producers and importers for whom the cost of changing packaging to introduce new barcodes could be prohibitive.

For its part. David Harris, chief executive of Circularity Scotland, said: “Circularity Scotland was established by the industry to meet its obligations under the deposit return scheme as efficiently and cost-effectively as possible. This announcement is further evidence of how we continue to innovate and identify additional ways to mitigate the pressure on companies. We know that smaller producers, in particular, have been concerned about the cash flow impacts of the plan, and these measures will address those concerns.