Supporters of the use of digital deposit return scheme technology claim to be winning support from multiple major food retailers for it to be used as a solution to the Welsh impasse threatening to derail the chances of a UK-wide system.
With the UK government expected to appoint a joint industry management company to run the UK’s first DRS within days, the decision of the Welsh government to pull out of a joined-up scheme, in November, remains a huge stumbling block for the scheme.
However, digital supporters are claiming fresh momentum, including the presence of The Co-op on the new management board. It is one of a raft of companies that recently backed an open letter calling on the government to include digital technology in the DRS rollout.
They also claim several other major supermarkets have privately expressed support for the use of digital technology. It could allow Wales to include glass in its scheme while preventing cross-border chaos for manufacturers trading in the country, they claim.
Digital DRS backers including the DDRS Alliance, led by director Duncan Midwood and Polytag, which has piloted digital schemes with the likes of the Co-op and Ocado, have been holding talks with retailers and manufacturers offering a solution to the Welsh deadlock.
A compromise deal suggested would see all UK products packaged in glass due to be in scope for the Welsh DRS carry a unique digital code. This would only be activated when returned to a Welsh retailer.
Letters have been sent to retailers and manufacturers calling for industry to support the Welsh government on delivering glass and to establish a trial of the technology to show it could work.
Midwood, whose consortium ran a trial of digital DRS in Brecon in 2023 and has worked closely with the Welsh government, told The Grocer there was a “clear priority” for the new DMO to develop an approach that would enable Wales to align with the other nations.
Polytag CEO Alice Rackley added: “As soon as the Welsh announcement came out I felt really positive about the opportunity for digital to be included. Its decision has certainly left the door open.
“It doesn’t have to be a pure digital scheme, it can be a hybrid.
“We know that the Co-op is a big supporter and now they are set to be included in the DMO and there are other members of the DMO who we know are supportive too.
“There are at least three massive retailers that have privately expressed their support to us.
“The DMO and the people on it now have two choices. They can torpedo any chance of a four nations scheme or say we’ve got to be open to digital.
“It’s the only way we’re going to get this to fly.”
However, proponents of digital technology also face strong opposition from some quarters, who claim the technology is unproven and would add unnecessary complexity to the DRS rollout.
One source told The Grocer digital being parachuted in as a solution for the Welsh problem was “simply not realistic”.
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