Traditional beer bottles are facing a threat of extinction due to a new green levy, brewers are warning. The new packaging levy is expected to increase the price of a 500ml beer bottle by 9p, leading to concerns among brewers about the impact on costs for consumers in both retail stores and bars. The planned levy on glass bottle production is raising worries that the cost of selling iconic beers like Old Peculier in traditional bottles could become unsustainable.
Initially introduced by the previous Conservative government and now adopted by Labour, the levy scheme will also add 3p-7p to the production cost of smaller 330ml bottles. This initiative is part of broader regulations designed to hold manufacturers responsible for financing the recycling and management of packaging to reduce excessive packaging waste. Set to come into effect in April next year, producers will face charges as part of the Extended Producer Responsibility for packaging (EPR).
Expressing concerns over the impending financial burden, brewing companies, pub owners, and industry leaders have jointly sent a letter to Steve Reed, the newly appointed Labour Environment Secretary, urging a reevaluation of the policy. In their communication, they underline the government’s assessment of the fees affecting the 3.2 billion beer bottles sold annually in the UK and warn of a potential industry-wide cost increase from an estimated average of £167 million to a possible £212 million.
The industry bodies such as the British Beer and Pub Association (BBPA), Independent Family Brewers of Britain (IFBB), Campaign for Real Ale (CAMRA), and the Society of Independent Brewers and Associates (SIBA) have all signed the letter expressing serious apprehensions about the new charges. They caution against the cumulative impact of the proposed fees potentially leading to the disappearance of many popular British bottled ales, reducing options for consumers and erasing any anticipated profits for brewers in an already challenging climate.
Richard Bradbury, Managing Director of Theakston, remarked on the situation saying, “We understand the desire to tackle unnecessary packaging waste, but the scale of charges, particularly on glass and the current plans for implementation could force out our Old Peculier beer and similar brands from the bottled beer market.” Likewise, Greene King, the brewery behind well-known bottled beers such as Old Speckled Hen, Abbot, and IPA, voiced their concerns about the substantial increase in costs for brewers and emphasised the need to find a solution to preserve brewing heritage and customer choice.
The proposed new fees have been described as imposing significant additional costs on brewers starting from next year. Industry leaders have collectively urged the government to review the fees, make them more equitable and sustainable, and ensure the continuity of business operations in the pub and brewing sectors. In response, a Defra spokesperson affirmed the government’s commitment to reducing waste as part of transitioning towards a circular economy and highlighted the benefits of the Extended Producer Responsibility for packaging in creating jobs, stimulating investments in recycling, and making packaging producers accountable for waste management costs.
As the brewing sector braces for the impact of the new green levy on traditional beer bottles, the industry remains hopeful for a reconsideration of the proposed fees to ensure a sustainable future for British brewers and consumers alike.