Deposit Return Scheme will have big change for customers

A TALLAGHT-based supplier says there are benefits for retailers with regards to the new deposit return scheme – a mandatory scheme to be brought in early next year and one which has caused a lot of consternation in the industry.

It will represent a massive change for both retailers and consumers – the new Deposit Return Scheme for drinks bottles and cans coming into effect in February 2024.

Retailers and producers are legally obliged to register for the scheme and will be required to refund a 15c deposit on containers under 500 ml and a 25c deposit for containers over 500ml and up to 3 litres.

The scheme will include PET plastic bottles, aluminium cans and steel cans between 150 ml and 3 litres, and will be operated by Deposit Return Scheme Ireland CLG, trading as Re-turn.

Registered retailers will be required to accept Re-turn drinks containers, regardless of whether the item was purchased on their premises.

Customers will be issued a receipt which is redeemable inside the store through cash, a discount on an in store product, or a donation to a charity, as specified by the customer.

To avoid manually handling and storing empty packaging behind the counter, most, if not all retailers, will have to invest in a Reverse Vending Machine (RVM), manage emptying the machine when full, and storing the returns.

“It will be like the plastic bag levy and the overnight change that brought about,” said David Kelly, Managing Director, RVM Systems Limited Ireland.

RVM Systems are one of the suppliers who are bringing in vending machines from Scandinavia where they are built, to install them for retailers in Ireland.

Kelly acknowledges the impact this will have for some 4,000 Irish retailers, but he feels the benefits have not been explained fully to retailers and the machines – which are available in different sizes – will “pay for itself in two and a half years”.

“It is meant to be cost neutral. There is a service fee and maintenance fee, but as a retailer it would be paid for in two and half years. One machine that the company operate in Norway has been in operation for 18 years without a problem, and most last up to 20 years.

“They are designed in Scandinavia, have minimal maintenance, and 98 per cent of it is operated remotely.”

Online support for retailers facing operational issues with their vending machines has yet to be confirmed, but likely from 8am to 10pm.

Re-turn will reimburse retailers the discount and a handling fee, details of which have also yet to be confirmed.

Kelly sees many other benefits to the scheme.

“If you dump a can on the ground, someone else will pick it up. This is before you include the possibilities for schools and sports clubs and organisations to get involved, in terms of sponsorships, or stores picking a chosen charity,” he said.

“You can also put an advert on the machine. A builder returning cans and bottles might see an add for a breakfast roll in the shop and think it’s good value.”

While on a work trip to Slovakia to see how their vending machines were operating, Kelly saw most people shopping in the store after using the vending machine.

The machines are already in operation in parts of Scandinavia, Slovakia and Scotland, but Irish retailers need to act quickly and not leave it too late to order.

“If a retailer hasn’t placed an order by August, it is going to be very tight,” said Kelly.

“There is plenty of logistics involved. We have to upload branded software. The software has to match the software in the store to counter fraud.”

Word of advice for customers is that cans and bottles need to be fully formed to be scanned by the machine, so crushed or damaged cans and bottles will not be accepted.

Kelly says in less than a second, the machine is able to weigh, scan and print out details for the receipt.

Aldi stores in Belgard Road, Newlands Cross and Fonthill Retail Park, have already submitted planning applications seeking the construction of single storey Deposit Return Scheme (DRS) unit at their respective stores.

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