AB InBev is exploring the introduction of a refillable glass bottle system in the UK, prompted by growing pressure from upcoming environmental regulations and what the company calls the "crushing weight" of packaging taxes. According to Drinks Retailing, the initiative was announced during a sustainability event held at the company’s Magor brewery in South Wales.
Brian Perkins, President of Western Europe at AB InBev, explained that the pilot project is still in the early planning phase and is likely to be launched in Newport, near the Magor facility. Although there is no fixed launch date, the trial could begin within the year. However, full rollout across the UK may take several years.
The move comes as the UK prepares to implement the Extended Producer Responsibility (EPR) and Deposit Return Scheme (DRS), both of which will have financial implications for producers using glass packaging.
· The Extended Producer Responsibility (EPR) is an environmental policy framework that makes producers responsible for the full lifecycle of the products they place on the market, especially in terms of post-consumer waste.
Under EPR, companies that manufacture, import, or sell products and packaging are financially and sometimes operationally responsible for the collection, sorting, recycling, and disposal of those items once consumers are done with them. The goal is to incentivize producers to design more sustainable, recyclable, or reusable products by linking environmental impact directly to cost.
In the UK, the upcoming EPR scheme, expected to come into full effect in the next few years, targets packaging waste. It means that beverage producers, among others, will have to cover the costs of managing packaging waste (e.g., bottles, cans, cartons), rather than relying on local governments to do so.
· The Deposit Return Scheme (DRS) is a recycling initiative where consumers pay a small deposit on beverage containers, which is refunded when they return the empty container to a designated return point. The aim is to reduce litter and increase recycling rates by encouraging the return of bottles and cans.
Proven Deposit Return Schemes are already operating effectively in countries such as Germany, Sweden, and the Republic of Ireland. These systems offer a practical solution to promote the recycling of beverage containers. In the UK, around 6.5 billion single-use bottles and cans are wasted annually instead of being recycled. A significant portion of them ends up as litter on streets, beaches, and in the countryside, posing a threat to wildlife and the natural environment.
The DRS is set to launch in October 2027 across England, Northern Ireland, and Scotland. Wales is developing its own version of the scheme, which will operate in coordination with those in the rest of the UK.
Perkins noted that the EPR framework in the UK imposes some of the highest packaging taxes in Europe, which he said could discourage investment in the region. “This is frankly in response to the crushing weight of packaging taxes,” Perkins stated, adding that while such schemes have good intentions, their financial burden threatens the beverage industry. He emphasized that AB InBev is actively collaborating with the Welsh government and other industry players to create a returnable and refillable bottle ecosystem in the UK. “This investment would create jobs, too,” he added.
However, Perkins also issued a warning about long-term business viability in the UK. If regulatory costs continue to rise, AB InBev might consider moving production to more business-friendly environments like Germany, France, or Brazil. “We can put investment anywhere we want in the world,” he said. “At some point, any investment board considers business-friendly environments.”
Despite the challenges, Perkins expressed hope that working jointly with industry and government could lead to sustainable packaging solutions that benefit both the economy and the environment.
