Suntory Beverage & Food Great Britain & Ireland (SBF GB&I) has published a new research and insights paper that can help inform an effective DRS operation in the UK. "Deposit Return Schemes: What’s in Store for the UK?" builds on the report launched in 2022, including further research to understand the actual, real response to the introduction of the Deposit Return Scheme in Ireland.
Early results from Ireland have been incredibly positive, with over half a billion containers returned since the launch of the scheme in February. The new research reinforces the three-stage mental shift model, "Surprise, Review and Reset", that SBF GB&I outlined in its original report and involved nine days of qualitative intercepts within grocery, convenience and forecourt retail environments.
Education is key In its original research, SBF GB&I found that it takes just seven weeks for most shoppers (88 per cent) to rethink their relationship with plastic bottles and to appreciate their value after living with the scheme.
An initial adaptation period is to be expected as consumers get used to the scheme, but SBF GB&I’s research shows many consumers move from this period of "surprise" to one of "reset" within a few months. This can be accelerated by showing the benefits for communities and how consumers can play their part. Overall understanding of the logistics of the scheme has increased, with "social proofing" helping to recruit non-engagers as they see fellow shoppers using reverse vending machines in store.
Consumers with the strongest understanding of the environmental benefits of the DRS tended to adapt the fastest and the most engaged consumers were those who had already noticed less litter in their local area.
“There is a great opportunity to learn from the implementation of DRS in Ireland and we are committed to ensuring a successful roll out in the UK," said Keith Allen, Director for Commercial Sustainability Director at SBF GB&I. "We know people will experience that initial moment of surprise at having to pay more upfront, and then return the container in good condition to reclaim their deposit, but it’s promising to see shoppers adapt and form new routines. We are on hand to support retailers on this journey, by sharing these lessons and opportunities that will help them prepare effectively.”
Learning from what works The research shows there are still some barriers to participation, including those who have difficulty storing drinks containers on the go before returning to a store, or don’t visit supermarkets as often, but that these barriers are reducing.
For "first timers", often younger people, once they realise how easy it is to return their containers and how many return points are available, it becomes easier to adapt. Families are using DRS to educate children on the positive environmental impact of proper recycling and using RVM vouchers to incentivise engagement, giving it to them to spend as pocket money.
SBF GB&I’s research shows that retailers can benefit from the scheme if they invest and build the consumer journey around their return vending machines (RVMs). Irish retailers report that the DRS is helping to build shopper loyalty and is rewarding those that make the experience better for consumers.
With redemptions of vouchers often taking place immediately in the store that containers are returned, the retailers that have benefitted most are those who have worked to overcome any initial challenges. Taking quick action when maintaining, cleaning and emptying RVMs, or by making simple additions like hangers for bags and bins to empty out liquids, is making the journey better and creating more loyal shoppers.
It is important that the scheme is as easy for consumers as possible and that removing unnecessary complexity or confusion will lead to better return rates and outcomes.
Committed to circularity The Suntory Group’s purpose is to inspire the brilliance of life, by creating rich experiences for people in harmony with nature. To realise this purpose, SBF GB&I is committed to accelerating sustainable and circular packaging to reach its goal of 100 per cent sustainable packaging by 2030.
Michelle Norman, Director of Sustainability and External Affairs at Suntory Beverage & Food Europe said, “We know we have a significant role to play in the UK’s net-zero ambition and can help build a circular economy. However, we are held back from making faster progress towards these goals due to a poor supply of high-quality rPET, caused by low collection rates and underinvestment in recycling infrastructure. Delivering a functioning DRS would directly tackle these challenges and lower our carbon emissions. We are keenly aware that we cannot achieve 'the brilliance of life' without the brilliance of the earth and DRS will help us protect it for future generations.”
It's now three years to go until DRS is introduced in the UK, with roll out confirmed by the government for October 2027.
Deposit Return Schemes: What’s in Store for the UK? can be downloaded here.
November’s sharp rise in inflation is expected to dampen festive spirits and restrict spending despite household’s being better off compared with last year, warned a recent report.
November marked a second consecutive month of faster price rises according to the latest figures from Asda’s Income Tracker published on Monday (23), with families across the UK continuing to face rising inflationary pressures.
The Consumer Price Index (CPI) accelerated to 2.6 per cent in November – up from 1.7 per cent in September and 2.3 per cent in October – driven by the transport sector and higher clothing and footwear prices.
CEBR, who produce the Income Tracker on behalf of Asda, has forecast that inflation is set to remain above the 2.0 per cent target in the coming months, with energy prices and wage growth responsible for driving further higher essential costs.
Despite inflationary pressures, household spending power continues to improve year-on-year. Average household disposable incomes grew by 10.5 per cent in November, marking six consecutive months of double-digit increases.
The average UK household was £23.74 per week better off in November compared to a year earlier and had £249 per week to spend after paying bills and essentials, providing some relief for families as they get ready for the big day.
Reacting to this month’s Income Tracker, Sam Miley, Managing Economist and Forecasting Lead at CEBR, said, “The Income Tracker saw a slowdown in growth in November, driven by accelerating inflation.
"That said, spending power has continued to increase, with the Tracker having exhibited double-digit growth for sixth consecutive months.
“Spending power amongst households has seen a gradual improvement throughout the year, which is welcomed ahead of the festive period.
"Nevertheless, consumer expenditure over Christmas is still expected to be held back relative to pre-pandemic levels amidst elevated inflation and the lingering effects of the cost-of-living crisis.”
A shop owner found with £5,620 worth of illegal tobacco products on his premises has received a suspended prison sentence and has been left more than £1,000 out of pocket.
As stated by Durham County Council on Monday (23), officers from community protection special investigations team executed a warrant of entry at Flavour Vapes in Newgate Street, Bishop Auckland, after the business failed two test purchases operations.
Magistrates in Newton Aycliffe heard that during the first test purchase operation, an employee of the shop was seen showing customers a range of five electronic cigarettes.
The undercover officer observed that the vessel size of the vapes contravened the Tobacco and Related Products Regulations 2016 and issued a warning.
The following month, a follow-up test purchase was conducted, and illegal cigarettes were purchased, leading to the warrant being executed.
Hardy Hassan, owner of Flavour Vapes, which has ceased trading, pleaded guilty to presenting for sale nicotine containing liquid within a disposable electronic cigarette in a volume exceeding 2ml, selling or distributing cigarettes and tobacco products bearing a sign identical to, or likely to be mistaken for, a registered trademark, supplying tobacco products which contravened packaging colour requirements and supplying tobacco products which contravened health warning requirements.
Hassan apologised and told the court he did not know the products were counterfeit. He was sentenced to a total of six months in custody, suspended for 12 months. He was also ordered to pay costs of £1,010.10 and a £154 victim surcharge.
Gary Carr, our strategic regulation manager, said: "The sale of illegal tobacco is a serious crime that causes significant harm to our communities. Not only does it have an adverse impact on the sales of law-abiding retailers, but it can attract other forms of criminality into local neighbourhoods.
"It also makes it easier for children to smoke due to the lower prices charged, and it robs the public purse of tax revenues that support vital services.
"Mr Hassan has left court with a prison sentence hanging over him. If he is caught trading in counterfeit goods again within the next 12 months, he will go to jail, and I hope this serves as a warning to others who flout the flaw."
Retailers could find themselves facing a New Year spending squeeze as public confidence in the state of the economy took a nosedive, show recent industry data.
According to BRC-Opinium data released today (23), consumer expectations over the next three months of their personal financial situation remained at -3 in December, the same as in November.
Confidence in state of the economy worsened to -27 in December, down from -19 in November. Confidence on personal spending on retail also fell while confidence in personal spending overall dropped to +11 in December, down from +17 in November.
Helen Dickinson, Chief Executive of the British Retail Consortium, said,“Public confidence in the state of the economy took a nosedive, falling 8pts to -27.
"This created a widening gap between expectations of the economy and of people’s own finances, which remained unchanged. Perceptions were heavily skewed by age, with 18 to 35 year olds considerably more upbeat than older generations on both questions.
"The public’s spending intentions – both in retail and beyond – dropped 6pts, with expectations of spending in nearly every retail category falling. If these expectations are realised, retailers could find themselves facing a New Year spending squeeze just as they unveil their January sales.
“The weak spending intentions could pave the way for a challenging year for retailers, who face being buffeted by low consumer demand and £7bn of new costs from the Budget set to hit the industry in 2025."
Dickinson added that with sales growth unable to keep pace, retailers will have no choice but to raise prices or cut costs – closing stores and freezing recruitment.
"To mitigate the impact this will have on growth, Government must ensure that its proposed business rates reform does not result in any shops paying higher rates than they already do," she said.
With Christmas spirit in full swing, convenience retailers across the UK are stepping up to spread joy, warmth, and a sense of togetherness within their communities.
From heartwarming events to dazzling decorations, convenience stores are going beyond their daily operations to create magical moments for customers.
Asian Trader reports on some of the most delightful initiatives, showcasing how independent retailers continue to be the beacons of holiday cheer in the communities.
One such magical event unfolded at the One Stop Carlton Convenience store in Salford, where retailer Priyesh Vekaria hosted the enchanting Santa’s Supercar Sleigh Event.
Vekaria wrote, "It was a day filled with joy, laughter, and the unmistakable magic of Christmas. From the wonder in children’s eyes as they met Santa to the heartfelt connections shared among neighbors, this event was a beautiful reminder of what makes the holiday season so special."
"This event wasn’t just about spreading holiday cheer; it was about celebrating the connections that bring us closer as a community. It reminded us that when we come together with kindness and collaboration, we create something truly magical."
Meanwhile, over at the One Stop Mount Nod store, retailer Aman Uppal went above and beyond to immerse the store in festive spirit.
Lavish decorations transformed the space into a winter wonderland, captivating customers and elevating their holiday experience.
Coca-Cola Christmas activations added an extra sparkle, with the iconic Coca-Cola truck displayed inside and a stunning LED screen outside the store bringing the magic to life.
Elsewhere in Powys, Wales, independent retailer Trudy Davies is filled with Christmas spirit as her store, Woosnam and Davies News, has a host of things to offer as giveaway this festive season from Santa hats to bird seeds packets.
In her signature style, Davies also drove "Made With Llani Love" Christmas-special campaign for festive times by encouraging locals to donate wool while members from the community knit blankets, hats, mitts, booties to be donated to a charity and local hospital.
In Telford, independent retailer Julie Kaur is proving to be a real-life Santa for her community.
Her store Premier Jules has been hosting a Christmas fair, in collaboration with local council and schools, for past two years.
Now in its third year, the event has become a cherished tradition, bringing people together and spreading the festive spirit far and wide.
Westerhope convenience store
Up in Edinburgh, Sophie Williams of Premier Broadway Convenience Store believes in involving the community around this festive times.
This year, she organised a school choir to perform outside her store, filling the air with joyful carols.
To enhance the celebrations, she handed out mince pies and chocolates, spreading sweetness and cheer.
Meanwhile in Newcastle Upon Tyne, independent retailer Sheraz Awan, owner of Sheraz’s Westerhope convenience store, is making sure that no one in the community goes without supplies.
Awan runs food donation campaigns throughout the year, completely funded by the store.
He has geared up the campaign around festive times to give bread packets as giveaway to those in need. The store will remain open on Christmas as well while Awan is hoping to giveaway about "1000 items of food" this year.
He wrote, "Remember, Christmas is upon us. Not everyone will have food on the table with loving family surrounding them."
Awan is also calling on suppliers and wholesalers to help and contribute in this cause.
Bestway Group is turning to a company voluntary arrangement (CVA) to exit about 35 vacant shops which previously traded as Bargain Booze and Wine Rack off-licences, stated recent reports.
According to Sky News, Bestway Group has informed landlords about plans for a company voluntary arrangement (CVA) for its Bestway Retail arm as it wanted to exit dozens of leases tied to shops which lie vacant within its retail estate.
Reports stated that about 35 shops which were not currently trading would be compromised in full under the plan. Roughly 10 further sites would seek rent reductions from landlords.
The CVA is being overseen by PricewaterhouseCoopers, stated Sky News citing a source.
Bestway's retail arm is said to comprise about 200 stores, largely operating under the Bargain Booze and Wine Rack brands.
Bestway also comprises operations in food wholesaling, the Well pharmacy chain, cement, real estate and United Bank, one of Pakistan's biggest lenders.
Meanwhile, Bestway Retail continues to strengthen its business. Most recently, it bolstered its senior leadership team with three new senior hires in the form of Nick Russell, Steve Moore and Rodney Tucker.
Russell, who previously worked for Costcutter until 2021, is now leading the independent Best-one and Costcutter estates. Moore, who also previously worked for Costcutter, will lead the Midlands and South Wales team from January 2025 as regional controller for Costcutter and Best-one.
Tucker has also rejoined the organisation in the new business and acquisitions team where he will drive the recruitment of new business in the Southwest and South Wales territories.