The body responsible for running the UK’s deposit return scheme, set to launch in 2027, has been founded by senior retailers and drinks brands, our sister website Better Retailing can exclusively reveal.
The UK Deposit Management Organisation Ltd is expected to be the lead bid to launch and run the UK’s deposit return scheme. Incorporation documents show senior figures from Coca-Cola Europacific Partners, Co-op, Heineken, Lidl GB, Radnor Hills and Tesco currently sit as directors of the company.
Government ministers promised that the body that will run the UK’s deposit return scheme, which will see retailers repay deposits to shoppers for returning plastic bottles and metal cans, will be officially announced in April, setting the stage for planning to commence.
A senior industry source involved in the newly-founded body confirmed Better Retailing’s report and said a board has been created at the company, which includes representatives of large retailers, small retailers, large suppliers, small suppliers, wholesalers and recycling bodies.
Better Retailing understands the trading name of the body may be different to the its official company name, with the Department for Environment, Food & Rural Affairs set to formally announce the launch “at the end of April”.
The UK Deposit Management Organisation will be responsible for designing the UK’s scheme. This will include deciding on how much deposit shoppers will pay on each drink purchased, the exemptions open to shop owners and how much retailers will be paid as a handling fee for accepting returned containers, whether through a reverse vending machine in store or manually accepting used containers over the counter.
Responding to the news, ACS chief executive James Lowman told Better Retailing: “This is a major step towards the delivery of a Deposit Return Scheme for the UK. For the scheme to deliver a step change in recycling rates, local shops will need to play an integral part, offering a convenient network of return points both for local residents and people consuming drinks on the go.
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“We are looking forward to working with the newly-formed Deposit Management Organisation to ensure that the scheme is operationally viable and attractive for retailers to take part in. With less than two-and-a-half years before launch, it is vital that retailers can make informed choices about how to take part in the scheme, and we are committed to providing the information and advice they need.”
SGF chief executive Dr Pete Cheema OBE responded: “SGF was a key stakeholder in the development of the Scottish DRS, and we have never stopped working to deliver a fully fit for purpose scheme that works for all our members.
“Our recent engagement with DEFRA and the Advisory Group has been positive, and we look forward to working closely with the new DMO in the coming months and years.
“We also need to ensure that any concerns our members have are addressed as early as possible, helping build confidence in the scheme and ensure retailers have all the information they need about the options available to them. That is why we have recently met with the DRS team in the Scottish Government and are due to meet with the Cabinet Secretary for Net Zero in the coming weeks.”
Deposit return scheme regulations officially passed through the House of Commons following a debate earlier this year, on 21 January. The House of Commons voted 352 to 75, majority 277, in favour of the proposal, paving the way for the scheme to be introduced in England and Northern Ireland from 1 October 2027.
The Department for Environment, Food & Rural Affairs refused to comment when approached by Better Retailing.
