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Major drinks manufacturers and retailers are urging the Welsh Government to accelerate decisions on its Deposit Return Scheme (DRS), warning that further delays could increase costs and create uncertainty for businesses and consumers. Executives from companies including Coca-Cola Europacific Partners, PepsiCo, Tesco, Sainsbury’s, Carlsberg-Britvic, The Co-operative Group, Asahi UK and Highland Spring have signed an open letter calling for immediate action.

The industry groups are asking the new Plaid Cymru-led Welsh Government to appoint Exchange for Change as scheme administrator before the end of July. They argue that this is the only realistic route to delivering the Welsh scheme on schedule and aligning it with the DRS model being developed across England, Scotland and Northern Ireland.

Industry leaders say rapid appointment of a scheme administrator is essential to avoid higher costs, operational disruption and reduced consumer confidence before the planned 2027 launch.

With less than 15 months before the proposed October 2027 introduction date, businesses warn that further uncertainty could make it increasingly difficult to prepare collection networks, reverse logistics systems, retailer infrastructure and consumer communication campaigns.

A Deposit Return Scheme requires significant coordination across the packaging value chain. Producers, retailers, logistics providers and recycling operators must establish systems capable of collecting used beverage containers, processing returned materials and ensuring deposits are refunded efficiently.

The companies supporting the letter say appointing Exchange for Change would provide continuity, as the organisation has already been selected to manage DRS implementation across England, Scotland and Northern Ireland. The appointment in May 2025 reportedly unlocked more than £1 billion of industry investment and is expected to support thousands of jobs while improving packaging circularity.

One of the main areas of debate in Wales is the treatment of glass packaging. Industry representatives have previously warned that requiring full-scale glass collection at every return point from the first day of operation could create significant costs, particularly for smaller producers and breweries that rely heavily on glass bottles.

• Glass inclusion remains one of the key challenges in Welsh DRS planning.
• Retail infrastructure must be prepared to handle returned containers efficiently.
• Consumer access depends on a convenient and reliable return network.
• Business investment requires regulatory certainty and clear implementation timelines.
• Recycling performance depends on effective collection and sorting systems.

Industry estimates suggest that a requirement for universal glass collection from launch could significantly increase costs, with concerns that these additional expenses could eventually affect drink prices. Smaller Welsh manufacturers are considered particularly vulnerable because of their dependence on traditional glass formats.

There are also concerns that consumers could be required to pay deposits on eligible containers before a fully functioning return system is available. Without accessible return points, shoppers may struggle to recover their deposits and confidence in the scheme could be damaged.

Coca-Cola Europacific Partners said a successful DRS could reduce litter, increase recycling rates and lower carbon emissions, but warned that every week without a scheme administrator makes delivery more challenging. The company called for progress that benefits both Welsh consumers and the environment.

The Co-operative Group also highlighted the importance of accelerating the transition towards a circular economy. The retailer said that protecting consumer choice, maintaining affordable products and supporting communities across Wales depend on timely decisions.

Andy Bagnall, director general of the British Soft Drinks Association, acknowledged that the Welsh Government inherited delays from the previous administration but said there is still an opportunity to deliver an effective system. He argued that a pragmatic approach to glass would be necessary to avoid unnecessary costs.

The industry has welcomed the Welsh Government’s commitment to include glass when it becomes practically feasible. Businesses believe that appointing Exchange for Change and adopting a phased approach could allow Wales to launch a workable DRS while continuing to improve recycling performance over time.

For the packaging sector, the Welsh debate highlights the complexity of implementing deposit systems. Success depends not only on legislation, but on coordinated investment in collection points, sorting infrastructure, consumer participation and supply chain collaboration.

As governments across the UK move towards greater packaging circularity, the Welsh DRS will be closely watched as an example of how environmental targets can be balanced with practical implementation challenges and economic considerations.

Image suggestion: beverage containers being returned through a modern deposit return machine in Wales, showing glass bottles, plastic bottles and aluminium cans entering a circular recycling system.