Circularity Scotland’s future in limbo as drinks industry, retail body stop voluntary funding

Soft drink makers, retailers and brewers have announced that they won’t be providing voluntary funding for Circularity Scotland Limited (CSL) after Scotland’s deposit return scheme got delayed until October 2025.

In a joint letter issued by British Beer & Pub Association, British Soft Drinks Association and Scottish Retail Consortium today (16) and seen by Asian Trader, the stakeholders stated that “a high degree of political uncertainty has now disrupted” the scheme, putting the future of Circularity Scotland Limited (CSL) at risk.

“Our members have collectively invested significant time and tens of millions of pounds in good faith to help establish a scheme administrator in Scotland to meet a deadline originally set by the Scottish Government. Sadly, a high degree of political uncertainty has now disrupted plans and timings, putting the future of Circularity Scotland Limited (CSL) at risk.

“Given this ongoing political uncertainty we don’t have the confidence required to provide further voluntary funding for the company. It is now a matter for the CSL Board to determine how it wishes to administer the company’s affairs.”

The letter further added that this is not what industry has been working for. 

“Our members have collectively invested significant time and tens of millions of pounds in good faith to help establish a scheme administrator in Scotland to meet a deadline originally set by the Scottish Government.

“Joint investment totaling tens of millions of pounds has been committed by manufacturers and retailers to help get CSL up and running and then internally as individual companies in order to meet the unique implementation challenges of Scottish DRS only for the go-live date to be changed less than six months before it was due to begin in August 2023 and then changed again to October 2025 at the earliest.

The letter added that drinks producers remain committed to working with the UK and Devolved Governments to deliver an “aligned and interoperable DRS that efficiently and effectively meets the needs of UK consumers, businesses and the environment”.

Circulatory Scotland was appointed as the scheme administrator by the Scottish government. It was set up as a not-for-profit company funded by the drinks industry.

The announcement comes amid reports that Circularity Scotland’s staff may not be able to continue in the intervening period. Some reports suggest that there been talks around putting the company into “hibernation” until the DRS launches.

“The unfortunate reality is that at this point, we are not able to confirm whether our staff will be paid for this month or whether they will be able to return to the office,” reports quoted the company’s statement.