Circularity Scotland has announced £22 million of cashflow support measures to help Scotland’s brewers, distillers, importers and drinks manufacturers prepare for the introduction of Scotland’s deposit return scheme (DRS).
The package includes upfront charges removed for lower sales volumes, improved payment terms for lower sales volumes and a simple labelling option for niche products to alleviate the “administrative burden”.
The support package is designed to help SMEs, Circularity Scotland says, who have previously voiced concerns about the impact of the scheme on their business’ cash flow.
In response to these concerns, Circularity Scotland says it is removing the day-one and month-one charges for all producers, up to a threshold of three million units per year, as well as providing two-month credit terms on deposits and fees up to the same volume threshold.
This announcement is further evidence of how we are continuing to innovate and identify additional ways to mitigate the pressure on businesses.
David Harris, Chief Executive of Circularity Scotland, commented: “This announcement is further evidence of how we are continuing to innovate and identify additional ways to mitigate the pressure on businesses. We know that smaller producers in particular have been concerned about the cashflow impacts of the scheme, and these measures will address those concerns.
“These additional support measures further demonstrate our confidence in being able to deliver ongoing operational efficiencies once the scheme has gone live. We are committed to ensuring that the DRS works for Scotland, is cost-effective for business and helps protect our environment for generations to come.”
Circularity Scotland says the three million unit threshold has been established to ensure that smaller-scale producers selling in Scotland benefit more proportionately from the cashflow support. The two-month credit terms will be made available to all producers, regardless of their size.
Circularity Scotland has also confirmed that it will be offering the option to use self-adhesive barcode labels for producers placing less than 25,000 units per year of a specific product on to the Scottish market.
This is a welcome change that responds directly to many of the concerns that have been raised, particularly those from smaller producers.
Commenting on the announcement, Circular Economy Minister Lorna Slater, said: “This is a big and welcome change that responds directly to many of the concerns that have been raised, particularly those from smaller producers like craft brewers.
“It addresses initial cash flow challenges and provides a pragmatic and simple solution to the issues raised around barcodes for smaller product lines. This is a package that gives businesses the clarity and confidence they need to be part of Scotland’s DRS.”
