Wine merchants may ditch expansion in Wales or pass on higher costs to retailers and consumers due to the country’s recycling scheme requirement to include glass, a family-owned wine business has warned, citing significant operational challenges.
James Tanner, the Chairman and Managing Director of Tanners Wines Ltd, has raised the issue, saying he would be "reluctant" to expand his company in Wales because of the country's new glass-inclusive recycling scheme.
The wine merchant, which operates facilities in Welshpool, Powys, and Llandudno in Conwy county and employs around 60 people, said the biggest concern centres on the requirement for dedicated barcodes on bottles sold in Wales.
The barcodes are needed so reverse vending machines and counting facilities can identify eligible containers under the scheme. However, Tanner warned that the requirement would effectively force businesses to maintain separate wine stocks for Wales and England.
Speaking to the BBC, he said the system would add significant costs and create logistical difficulties, “particularly when you're delivering up and down the Welsh borders”.
Tanner added some suppliers may refuse to do it, and some producers in "fine wine areas" of France "won't put barcodes on their product anyway".
Under plans due to come into force in 2027, consumers in Wales will receive cash or vouchers when returning empty drinks containers for recycling or reuse through designated return points at supermarkets and local shops.
While England, Scotland and Northern Ireland are planning to introduce Deposit Return Schemes covering plastic bottles and metal cans from October 2027, Wales intends to include glass containers as part of its system.
Tanner's warning comes just days after the British Soft Drinks Association (BSDA) cautioned that the UK could face fraud risks of up to £300 million annually if the Welsh scheme is not fully operational when the wider UK system launches.
Industry figures have warned that a lack of alignment between Wales and the wider UK system could create significant loopholes for fraudsters, particularly through cross-border redemption activity between England and Wales.
Andy Bagnall, Director General of the BSDA, commented: “Without the swift appointment of a scheme administrator in Wales by the new government, there is a real risk that the Welsh Deposit Return Scheme will not be operational when the scheme goes live in the rest of the UK from October 2027.
“Industry analysis suggests that having no scheme in Wales could expose the wider UK scheme to fraud risks estimated at up to £300 million per year, creating loopholes that criminals could exploit across borders and between different regulatory frameworks.”