Ocado and Co-op are among 60 businesses urging the government to scrap the “return to retail” requirements for the deposit return scheme, as it faces turmoil following the withdrawal of the Welsh government.
In a letter to environment minister Mary Creagh, companies urged the government to leave the door open for digital solutions to the return scheme, rather than insist on a system based around in-store vending machines.
The letter comes with the UK government having this week laid out the regulation in parliament to pave the way for a DRS system in England, Scotland and Northern Ireland, whilst the Welsh government, which had previously been a big supporter of digital trials, has pulled out. It said it will “go it alone” with its own system.
“We are calling upon the government to set the UK’s deposit return scheme up for success by allowing and encouraging digital innovation within the regulations,” says the letter to Creagh.
“This can be done, quite simply, by reviewing DRS legislation and removing ‘return to retail’ prescriptions, framing plans in an open way and offering stakeholders flexibility within the framework.”
The Co-op is among opponents to a reverse vending machine-based model, which it fears will drive customers to larger stores which will attract the majority of returns.
There have been a number of trials of digital technology, including Polytag and Ocado in 2023, which saw more than 20,000 rewards redeemed in 56 days in a pilot on milk bottles.
The DDRS Alliance also ran a trial of DDRS technology in Brecon, Wales, last year, although plans for the first major urban trial in Enfield, which was due to run in the autumn, were shelved due to lack of retailer support.
However, exponents of digital technology have urged the UK government to use the crisis facing the UK-wide rollout as another chance to consider including digital as part of the solution.
Laura Fernandez, senior packaging and sustainability manager at Ocado Retail, said: “Ocado Retail and Polytag have already clearly demonstrated that shoppers have an appetite for a digital deposit return scheme; we fully support the need for a modern, flexible scheme that embraces digital innovation.
“A digital option is a convenient and necessary step toward creating a recycling system that really works. This approach would empower consumers, reduce operational strain on retailers, and accelerate progress toward the UK’s circular economy goals.”
“The introduction of a DRS is extremely welcome and will play a key part in the UK’s circular economy ambitions,” added Alice Rackley, CEO at Polytag.
“However, without the flexibility for digital solutions, the scheme could make recycling harder, not easier, for consumers.
“A digital option would allow consumers to reclaim deposits conveniently from home, relieving pressure on retailers. Through innovation and digital integration, the government can implement a blended DRS that works for both businesses and consumers.
“We hope to be able to work with the government to improve environmental outcomes for all.”
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