Pubs and brewers hit with fresh packaging costs that will "sabotage the Chancellor’s hopes for British businesses and hit shoppers at the tills."

In light of the new packaging fees announced today by the Government (https://www.gov.uk/government/publications/extended-producer-responsibility-for-packaging-2025-base-fees) please find the BBPA's response below.

Emma McClarkin, CEO of the British Beer and Pub Association, said: “By heaping a further £124 million on brewers - the equivalent of 4p per 330ml bottle – these new fees sabotage the Chancellor’s hopes for British businesses and will hit shoppers at the tills.

“To impose such significant new costs on brewers who already use recyclable packaging and pubs who collect and recycle virtually all of their glass is hugely disappointing. To put it mildly, EPR could drive some brewers out of the glass bottle market and heap more costs on pubs which will only endanger jobs and growth.

“This is just not good enough given the barrage of rates and regulations the sector is already grappling with. Given the threats these fees pose to business, workers, and shoppers, Government must reconsider these costs and mitigate the impact so the sector can carry on doing what it does best – boosting the economy, keeping people in jobs, and serving up great beer.”

EPR

What is it?

Extended Producer Responsibility (EPR) is a Government policy where producers are made responsible for the full lifecycle of the products they place on the market, especially for the costs of managing products once they become waste. This new Government regime has imposed new fees on the sector – despite brewers and pubs using recyclable glass and managing a significant portion of their glass packaging through private waste contracts, ensuring high recycling rates.

Who pays?

Under EPR, producers —for example brand owners (brewers) or importers (wholesalers/retailers)  - pay fees based on the type and volume of packaging they place on the market. These fees cover local authority costs of:

* Collecting

* Sorting

* Recycling or disposing of the packaging waste

Impact on brewers and pubs

Brewers

Brewers (especially those packaging and distributing drinks) are directly impacted as they fall under the definition of "producers." They will face higher costs due to the new packaging fees and administrative burdens of reporting.

Pubs

Pub may feel the impact through increased supplier costs, as brewers may pass some of the EPR costs down the supply chain. They will also have to pay double to recycle the same glass bottle, as the products are classed as household waste, but they already have to pay for private contractors to take away their waste.

Contact: Anna Edwards, aedwards@beerandpub.com

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