With a new Deposit Return Scheme looming in October 2027, momentum is building as the entire local retailing industry begins to put the jigsaw together, hopefully in good time.
By Antony Begley
What was crystal clear for a very long time before the last botched attempt at launching a Deposit Return Scheme (DRS) in Scotland collapsed in chaos was the fact that the local retailing sector was a country mile away from being ready for it, even if it had passed into law as planned.
As it turned out, retailers’ scepticism about the plan and reluctance to tool up in readiness was justified. The scheme died a very public and ignominious death and, years later, the fallout continues.
This time around, however, the indications are increasingly clear that a DRS will indeed be introduced in Scotland on or around October 2027. Lessons have been learned and, while it’s still early days, the new UK Deposit Management Organisation (DMO) appears to be a vast improvement on Circularity Scotland, the DMO at the time of the first DRS.
The vast majority of the big stakeholders in DRS are more or less on board this time around, for various but related reasons: the supermarkets, the big suppliers and the larger convenience store chains.
What local retailers can take from all of this is that DRS is very likely to happen and the time to start thinking about how you will cope with it when it does is now. Perhaps the most pragmatic approach to DRS is not to think of it as merely ‘coping’ with it, but proactively looking at how you can maximise the opportunity it will bring. View it as an opportunity, not a challenge.
The UK Deposit Management Organisation (UK DMO) has continued its steady progress with the appointment of Russell Davies as its Chief Executive Officer.
Davies brings more than 25 years of leadership experience across global logistics, supply chain management and commercial strategy. Most recently, he served as Chief Executive Officer for North Europe, the Middle East and Africa at Hillebrand Gori, a DHL company specialising in beverage logistics, where he led teams across multiple international markets.
He will formally take up the role on 5 January 2026. He comments: “This is a once-in-a-generation opportunity to deliver a scheme that works for business, for consumers and for the environment – a system that changes how the UK manages packaging and recycling.
“Work is already underway and we’re working hand-in-hand with industry, government and supply chain partners to ensure the scheme is designed with their needs in mind and can be delivered in a way that works for everyone.”
The Irish experience, as highlighted in last month’s SLR, shows that many local retailers have turned DRS into a new source of income, growing footfall and growing sales and profits. As Macroom Costcutter retailer June Murphy said: “At first we were unsure about DRS but now everyone brings their recyclables back to us because there are no long queues like in the bigger stores.”
A related issue is the importance of focusing on delivering the best possible customer experience, just as you would with a new coffee machine or hot food unit. You probably wouldn’t buy the cheapest bit of kit you can find, so it makes sense to apply the same logic to a reverse vending machine (RVM), if you get one. Make recycling a convenient, quick, clean, enjoyable experience and you’ll automatically be creating return visits.
Indeed, that’s the experience of Truls Haug of TOMRA, the global leader in RVMs. He comments: “The successful retailers in Ireland are those who’ve embraced DRS as an opportunity to offer a simple, convenient service that keeps shoppers coming back. Stores that planned early and chose a solution that suited their unique store became the go-to return point for their local area.”
Students across the Motherwell, Coatbridge and Cumbernauld campuses of New College Lanarkshire have recycled more than 20,000 cans and plastic bottles in a five-week DRS trial.
A similar trial last year saw just 255 returns. This year, a 20p incentive was offered for each return, resulting in 20,177 bottles and cans returned: 11,293 cans and 8,884 plastic bottles.
The trial was a partnership between Keep Scotland Beautiful, New College Lanarkshire and Coca-Cola Europacific Partners.
However, once the incentive ended, usage dropped sharply with just 346 containers recycled the following week, a 91% decrease on the trial’s weekly average.
