Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What are the EPR thresholds and exemptions for packaging in the UK?
The UK's Extended Producer Responsibility (EPR) scheme has a **dual threshold exemption**: you must be over **£1m in annual turnover AND produce over 25 tonnes of packaging waste** to be in scope. If you fall below either threshold, you're exempt. - **Threshold detail**: 25 tonnes of packaging waste equates to approximately 41,000 glass bottles at 600g each. This applies at the **manufacturer level**, not the distributor or wholesaler level—so many smaller brands remain exempt even if their products are distributed by larger wholesalers or traded distributors who themselves exceed the threshold. - **Implementation timeline**: A Designated Managing Organisation (DMO) is being appointed in April, with fees becoming volume-based and applying from **27 October** onwards. At that point, all producers, wholesalers, and other supply-chain participants above the exemption threshold must be registered. - **Official guidance**: The government's full guidance is available at gov.uk/guidance/extended-producer-responsibility-for-packaging-who-is-affected-and-what-to-do **Note**: The exemption structure means the threshold is clearer for manufacturers than for other actors in the supply chain (wholesalers, distributors), and members confirmed the manufacturer-level application of the thresholds.
What are the practical strategies and service providers for managing EPR (Extended Producer Responsibility) compliance and costs?
EPR compliance is creating significant cost pressures for drinks brands, with some facing six or seven-figure annual impacts depending on sector. Members are using several practical approaches: **Service Providers & Consultants** - **Ecosurery** (Bristol) — recommended by multiple members for managing EPR registration and compliance - **CLARITY** — a consultancy that has identified potential cost mitigation strategies and is helping brands develop collective responses **Cost Mitigation Tactics** - **On-Trade exemption letters** — Some consultancies have identified a potential route to reduce costs: obtaining written confirmation from end-on-trade customers (not wholesalers) stating that bottles cannot be removed from the premises where sold. Members report most customers are willing to sign these letters. - **Collective industry approach** — Several members are forming a united group with competitor brands to submit appeals to DEFRA, though this takes time. A large soft drinks brand has already faced investigation for attempting to exclude on-trade from waste returns to avoid the levy. **Key Caveats** - Retailers and wholesalers are responding inconsistently — some are collaborating with suppliers on costs, others are delaying decisions and leaving suppliers to fund the interim gap. - Amazon and other major online platforms have notified some sellers of EPR tax increases and requested price decreases; members report some suppliers are absorbing these rather than passing them on. - The on-trade letter strategy may face scrutiny (DEFRA has already investigated similar approaches by larger brands). - Joining a collective buying group or consultancy arrangement can help coordinate strategy but requires time investment. Members advise monitoring DEFRA's response to appeals and collective challenges.
Do Extended Producer Responsibility (EPR) packaging fees apply to small brands below the threshold when their products are sold via distributors above the threshold?
EPR liability is determined by the **manufacturer/producer**, not the distributor or retailer selling the product. - **Liability threshold is producer-based**: If the manufacturer does not qualify as liable for EPR fees (i.e. is below the scale threshold), then no one else in the supply chain becomes liable, regardless of distributor size. - **Producer responsibility principle**: The name "Extended Producer Responsibility" reflects the core rule—it is the producer's responsibility, not the distributor's. This applies whether a small producer sells direct or through a distributor above the threshold. **Caveat**: Members noted at the time of this discussion (December 2024) that the regulations were "wooly and ambiguous" with the January 1st implementation date approaching. While the producer-based interpretation was the working understanding, some members reported hearing contrary views and lacked definitive proof from official guidance. Verification with HMRC or formal legal advice may be prudent given the regulatory uncertainty.
What is Extended Producer Responsibility (EPR) legislation and how does it affect imported drinks products into the UK?
Extended Producer Responsibility requires producers and importers to track and report packaging data. **Reporting thresholds:** You only need to formally report if you have turnover over £1 million and generate 25 tonnes of packaging waste annually (approximately 35,000 glass bottles at 700g each). **For imported products:** If you're importing drinks, you'll need to clarify responsibility with your importer — either you or they may be designated as the responsible party for reporting packaging data. Members noted that communication from HMRC about the Advanced Packaging and Packaging Waste Regulations (APPA) has been limited, and several discovered the requirements through industry bodies like the BDA rather than direct government outreach. Even if below reporting thresholds, importers should still be recording packaging data for compliance purposes.
What are the UK EPR registration and payment obligations, timelines, and revenue thresholds for drinks businesses?
UK EPR compliance hinges on revenue thresholds and financial year timing. Here's what the community understands: **Revenue thresholds and liability:** - Businesses with **£1m+ UK revenue** are classified as 'small' producers; those at **£2m+ become 'big'** producers - **Only UK revenue counts** — export revenue is excluded from the threshold calculation - Liability to pay begins in the financial year *following* the year you cross the revenue boundary (not immediately upon crossing) - There is also a **tonnage exemption** (specific threshold not recalled by discussants) **Registration and submission timeline:** - **31st May 2024** was the registration and data submission deadline to the Environment Agency - Payment obligations vary by producer size; businesses under £2m revenue may not be liable to pay immediately (unless they fall into PRN-paying categories) **Caveats:** - Members noted there is "a lot of confusion" and limited discussion in the industry about exact requirements. The specifics of which financial year triggers liability can vary depending on your reporting period, so verification with your own accountant or the Environment Agency is advised. - Miles Beale's article in The Spirits Business (January 2025) was flagged as a useful, recent reference point on EPR concerns.
What do drinks brands need to know about Extended Producer Responsibility (EPR) packaging regulations and compliance in the UK?
EPR legislation is now a mandatory consideration for drinks brands, with significant cost and compliance implications. Here's what members recommend: **Compliance & Administration:** - **Ecosurety** — members use them to handle packaging waste submissions and PRNs (Packaging Recovery Notes). They provide guidance on the regulatory landscape and cost implications. - Monitor packaging regulations and revenue/weight thresholds carefully if your company is fast-growing; non-compliance in even a single year can result in criminal charges, so this is not optional. - Recycled glass content and other material considerations now factor into costs, which can incentivise more sustainable packaging choices. **Key Actions:** - Review the government guidance at gov.uk/guidance/extended-producer-responsibility-for-packaging-who-is-affected-and-what-to-do to understand if and when your brand is affected. - Factor EPR costs into your cost base and financial projections early—these are real, incremental expenses that will grow over time. - Work with a compliance partner (like Ecosurety) rather than handling submissions in-house if you lack expertise. **Caveat:** The regulatory landscape is evolving, so staying informed and planning ahead is critical to avoid penalties and unexpected costs.
Can EPR costs be mitigated by obtaining written confirmation from on-trade customers that bottles won't leave the premises?
Members report that some consultancies have identified a potential EPR cost mitigation route: obtaining written confirmation directly from on-trade customers (not wholesalers) stating that bottles will not be removed from the premises where they were sold. Early indications suggest most on-trade customers are willing to sign such letters. However, there are significant caveats: - **DEFRA scrutiny risk** — The regulatory environment is uncertain. DEFRA has already investigated major brands for attempting to exclude the on-trade from waste return schemes to avoid EPR levies, suggesting this approach may face regulatory challenge. - **Interim cost burden** — Wholesalers, retailers and online channels are responding inconsistently to EPR requirements, with some delaying action. Suppliers are currently funding the interim gap, creating six or seven-figure annual impacts depending on sector. - **Collective approach** — Members recommend joining industry collectives (e.g. **CLARITY**) to mount united appeals with DEFRA rather than acting alone, as regulatory interpretation may change. - **Real-world compliance risk** — There are joking but pointed references to enforcement challenges in certain geographies, questioning practical enforceability of such confirmations. This approach remains experimental and unproven at regulatory level. Members advise treating it as one potential lever in a broader EPR strategy rather than a reliable solution, and staying connected to industry groups monitoring DEFRA's stance.