British ales at risk from glass bottle tax, warn brewers

A swathe of Britain’s best-known bottled ales, such as Old Peculier, are at risk of disappearing owing to a new, green packaging tax, producers have warned.

Brewers and soft drinks makers selling their products in glass bottles have warned that a coming tax on the bottles could cause prices to surge and burden businesses with higher costs.

Industry bosses have written to Steve Reed, the Environment Secretary, calling for a rethinking of the impending extended producer responsibility for packaging (EPR) tax.

Richard Bradbury, managing director at Theakston Brewery, which makes Old Peculier, said: “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 of the bottled beer market.”

The levy was formulated by the former Conservative government but continued by the Labour Government. It was designed to shift the cost of recycling food and drink packaging onto manufacturers instead of local authorities.

However, brewers have warned it will burden them with additional costs. They claimed that for 330ml glass bottles, the planned rates published by the Government would add between 3p and 7p per bottle. For 500ml bottles – the format Britain’s traditional ales are best known for – costs could rise to as much as 9p per bottle, they said.

Paul Davies, chief executive of the Carlsberg Marston’s Brewing Company, said: “We are committed to working collaboratively with the Government to deliver a circular economy and doing our part to support a more sustainable future for the UK.

“However, we share the industry concern that the scale of these extra costs – at such a delicate stage for the sector still grappling with high energy and material prices – will have a negative impact on bottled beers.”

Emma McClarkin, the chief executive of the British Beer and Pub Association, said: “These suggested fees pose a serious risk of business failure and could lead to extra cost for the customer, strangle investment and growth which means less jobs, and lead some to make heartbreaking decisions about whether they can keep making their beer.”

However, the effects of the tax go beyond beer. Britain’s small-scale soft drinks makers have similarly argued that the implementation of EPR will make it harder for them to compete against global rivals such as Pepsi and Coke.

This is because a concurrent move to introduce a flagship bottle-recycling scheme, called the Deposit Return Scheme (DRS), for plastic has been delayed.

Ian Bray, the chief executive of Fentimans, said: “The whole plan originally was that you’d have EPR, which is effectively curbside collection of waste, and DRS, which is recycling in stores happening at the same time, which made absolutely perfect sense.

“You’re now in the bonkers position that they’re trying to introduce EPR and people like me that make stuff in glass bottles will be paying a chunky 15pc or so extra, according to their indicative numbers, whilst anyone who is manufacturing in a plastic bottle or tin can gets two years off to be able to have their prices significantly lower in supermarkets.”

A spokesman for the Department for Food, Environment & Rural Affairs said: “This Government is committed to cracking down on waste as we move towards a circular economy.

“Extended producer responsibility for packaging is a vital first step. It will create 21,000 jobs, stimulate more than £10bn investment in the recycling sector over the next decade and see packaging producers, rather than the taxpayer, cover the costs of managing waste.

“We will continue to work closely with businesses on the implementation of this programme, and publishing the illustrative base fees provides them with the clarity they need to prepare.”

Broaden your horizons with award-winning British journalism. Try The Telegraph free for 3 months with unlimited access to our award-winning website, exclusive app, money-saving offers and more.