​Glass Tax Could Shatter Traditional British Businesses, Warns Fentimans

Fentimans has voiced serious concerns that a proposed glass tax could force the company to close its doors after more than a century of business. The tax, set to be part of the Department for Environment, Food and Rural Affairs (Defra) extended producer responsibility (EPR) initiative, would significantly burden businesses reliant on glass packaging.

The glass tax aims to shift the responsibility of recycling costs onto producers, with estimates suggesting an additional £300 per tonne to recycle glass. Fentimans, known for its traditional drinks such as Rose Lemonade and Curiosity Cola, has warned that this cost increase could make its business unsustainable.

Ian Bray, CEO of Fentimans, did not mince words, describing the potential impact as devastating. "Fentimans has been selling quality soft drinks since 1905. It would be tragic if this inequitable policy destroyed our business after 120 years just because it hasn't been thought through," he said. His remarks reflect the mounting frustration among small- to medium-sized businesses in the beverage industry, which fear that the glass tax could threaten their existence.

The proposed tax has ignited opposition from the broader beverage industry, particularly from brewers and soft drink manufacturers. Trade associations like the British Beer and Pub Association (BBPA) have rallied against the initiative, urging the government to reconsider. They argue that the additional costs will impose severe financial strains on an already burdened sector.

According to the BBPA, the tax could increase the cost of each bottle of beer sold by between 3p and 7p. This translates into an estimated annual cost increase of between £84 million and £212 million across the 3.2 billion beer bottles sold in the UK annually. BBPA Chief Executive Emma McClarkin expressed concern over the rising costs, stating, "These estimated fees provide long-overdue clarity, but they sharply reinforce our concerns about the eye-watering additional costs brewers will be expected to bear from next year and the impact on customers."

McClarkin also highlighted brewers' critical role in the UK economy, supporting hundreds of thousands of jobs and driving innovation in low-alcohol and alcohol-free products that align with public health goals. However, she underscored the industry's heavy tax burden, urging the government to consider the cumulative impact of the EPR on the sector.

Paul Davies, CEO of Carlsberg Marston's Brewing Company, echoed similar concerns. He acknowledged the brewing industry's commitment to sustainability, citing Carlsberg Marston's ambition to achieve zero packaging waste by 2030. However, Davies warned that the financial strain of the new tax, combined with existing pressures from rising energy and material costs, could harm both businesses and consumers."We would urge the government to hold constructive discussions with industry about how EPR could be implemented in a way that delivers our shared ambitions for sustainability whilst also supporting and preserving our treasured national beer and pub culture," he said.

The glass sector has also raised alarms, with British Glass, the industry's representative body, pushing for a delay in the tax's implementation. The group warns that the immediate tax introduction could lead to significant job losses. British Glass has called for a more equitable approach, noting that other packaging materials, such as plastic and aluminium, have been granted a two-year grace period before they are subject to similar waste policy costs. Nick Kirk, Technical Director of British Glass, pointed out this discrepancy, stating that glass is unfairly disadvantaged compared to these materials, which will not face EPR fees until October 2027.

Despite the concerns raised by the industry, Defra has defended the proposed tax as a crucial step in reducing waste and promoting a circular economy. A Defra spokesperson stated, "Extended producer responsibility for packaging is a vital first step in cracking down on waste as we move towards a circular economy, and we have always been clear these fees are our initial estimates. In line with our collaborative approach, we are continuing to meet the glass industry to discuss more workable approaches, including how we calculate the cost of glass."

The clash between Defra's environmental ambitions and the financial realities faced by the beverage and glass industries has raised questions about the long-term sustainability of the policy. For companies like Fentimans, the stakes are exceptionally high. With over a century of history at risk, the debate over the glass tax touches not only on environmental responsibility but also on the preservation of Britain's historic businesses and industries.