Announcement Regarding Extended Producer Responsibility (EPR)
Dear Valued Customer,
We would like to inform you about an important update regarding the recently introduced Extended Producer Responsibility (EPR) policy. Under this policy, producers are now responsible for all waste collection, sorting, and recycling.
Originally positioned as an ‘on-cost’, EPR has now been classified by the Treasury as a tax. As such, we are required to pass on this tax from the 1st May following the same approach that is applied when alcohol duty rates are increased.
We have already passed this additional tax on to our Off-Trade customers, this was effective from 1st April. However, we are acutely aware of the additional challenges currently facing the On-Trade sector, and as such, we took the decision to delay the implementation of this additional tax for our On-Trade customers as outlined below:
Effective 12th May – Applies to all packaged beers, ciders, and soft drinks where EPR has been factored into our costings or where we are directly responsible. Effective 1st June – Applies to all wines where EPR has been factored into our costings and where we are directly responsible.
As an active member of the British Beer & Pub Association (BBPA), we have joined the industry in challenging this additional cost burden and will continue to lobby against this additional tax on behalf of the industry. We understand that this cost will be an unwelcome development, especially considering the pressures and headwinds hospitality businesses are facing.
We are currently working with our supply partners to determine the full and final cost implications. The table below is an illustration of the costs which will be applied from 12th May following our initial internal and external benchmarking by product type.
*EPR costings are based on packaging weights and will therefore mean that there will be variations on the tax value that is applied to wine dependent on glass weight and packaging.
Our Sales Development Managers and Wine Development Managers are available to support through these changes and we will be providing updated wine lists via our design team to reflect price changes and protect margins.
We are committed to full transparency on this charge and as such, the EPR cost will be added to your existing discounted price per product. We are also developing a clear and illustrative breakdown that will show this tax as a separate cost on your invoices. The updated pricing will be detailed on the wholesale website where there will also be links to further information on EPR.
Thank you for your understanding and continued support as we navigate these changes together.
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