Britain's beer industry has warned that rising costs could hurt pubs and breweries without urgent government intervention.
The British Beer and Pub Association (BBPA) has called on the UK government to reconsider the high cost of the Extended Producer Responsibility Scheme (EPR). The association described the fee, which will come into effect this year, as "unaffordable" because it could push up costs for breweries and bars already under financial pressure.
In a letter to the minister, the association stressed the need for ongoing review of the scheme, which charges producers based on the amount and type of easy-to-pull packaging they use. The association said the current estimate could put significant financial strain on the beer industry, which is still recovering from the impact of the pandemic and rising energy costs.
Emma McClarkin, chief executive of the British Beer and Pub Association, stressed the transparency and fairness of EPR fees. "We need a clear and fair process to ensure that costs are reasonable and manageable," she said in a statement.
The association stressed that if the issue is not addressed, the cost could be passed on to consumers and the price of beer will rise at a time when budgets are already tight.
Bigger problem
These concerns echo those raised by other industries affected by the EPR program. Last year, the Department for Environment, Food and Rural Affairs (Defra) announced plans to review the high price of materials such as glass under the scheme.
Packaging costs are a key issue across the beverage industry, with many producers struggling to absorb rising expenses while maintaining their commitment to sustainability.
The British Beer and Pub Association urged the government to work with industry stakeholders to find a solution that balances environmental objectives with economic realities. It also called for greater clarity on how fees are calculated and used, and argued that a more collaborative approach could help minimize the financial impact while meeting the program's recovery goals.
The drinks industry has already sounded the alarm about the impact of the EPR scheme on glass packaging. The review of glass prices by the Department for Environment, Food and Rural Affairs reflects concerns about the affordability of achieving the Sustainable Development Goals without harming businesses.
With the first charges under the EPR scheme expected to be imposed this year, the British Beer and Pub Association is urging the government to act quickly. It warned that without changes, the fees could become unaffordable for many breweries and bars, adding to challenges already facing the hospitality industry.
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