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What impact will the Deposit Return Scheme have on Irish business and consumers?

Julie Nash — Tue, 23 Jan 2024 20:05:44 +0000

What impact will the Deposit Return Scheme have on Irish business and consumers

by Colette Devey, EY Ireland Consulting Partner and Consumer Sector Lead

Ireland is introducing a nationwide Deposit Return Scheme (DRS) on 1 February 2024 as part of its measures to combat waste and promote a circular economy. This move echoes similar schemes used across many countries worldwide with proven positive effects on waste reduction and recycling rates. The DRS has implications for businesses and consumers alike.

Customers purchasing plastic bottled or canned drinks which bear the Re-turn logo will pay a deposit of 15 cent or 25 cent, depending on the size of the container, which is refundable upon return to designated points. The Re-turn logo containers, with registered barcodes, will appear on the market from February 2024. Older stock without the logo can be supplied until mid-March and sold until the end May, meaning most drink containers sold nationwide will be part of the scheme.

The recent Future Consumer Index from EY reveals a global shift towards sustainability-focused consumers, increasingly acknowledging the reality of climate change and adjusting their consumption habits accordingly. The research discovered that 61% of people aim to be more conscious of the environmental impact of their consumption. Thus, the new DRS is poised to be a vital tool in steering consumers towards more eco-friendly practices.

The impact on B2B relationships in supply chains will be significant. Collaboration and strategic alliances are essential to reconfigure packaging, logistics, and recycling processes. Businesses should be planning to seize opportunities and mitigate the challenges presented by this measure.

Societal impact

Ireland, like all European countries, continues to grapple with an escalating plastic problem and continuing to meet set recycling targets. Consistent with approaches adopted by other European countries, the DRS has proven beneficial in boosting closed-loop circularity, waste reduction, and recycling rates.

Germany operates one of the most successful deposit return schemes, locally known as Pfandsystem, which ensures a record 98% return rate on eligible single-use drink containers. This success is due to the substantial deposit value and extensive, convenient return locations. In addition to facilitating the collection and recycling of single-use packaging, the German Packaging Law promotes refillable containers, which contributes to 42% of all beverages filled in the country. Germany updated its single-use deposit return system in January 2022, with plans for further modification in 2024, including the incorporation of single-use plastic bottles for milk-based drinks.¹

Significantly, one of the benefits of the DRS is the supply of clean, well-sorted materials, stimulating higher recycling rates among local businesses, and should have a domino effect for innovation in the material processing and recycling sector.

EY’s Future Consumer Index suggests that consumers are generally agreeable to sustainable government initiatives when they perceive value or no additional costs. However, the survey also found that only 47% say they are regularly recycling/repurposing products after use.

Therefore, the DRS provides an attractive option for consumers to redeem the cost as well as an incentive to create better recycling habits.

Retailer impact

Impacts on retailers hold both pros and cons that need to be considered. On the upside, it will enhance customer traffic and monetary incentives such as handling fees, and the scheme can contribute to an improved corporate reputation, while providing more comprehensive data for consumer intelligence.

Conversely, challenges include higher costs associated with collection infrastructure, alterations to retail floor space, possible staff training for new systems, and potential implications on staffing. Further challenges include cash flow, as customers are not required to return containers to their place of purchase and have the option of receiving a cash refund, leading to a potential delay in retailers’ reimbursement through the system.

Irish regulations also allow exemption from participation for certain retailers, such as those operating in spaces less than 250 square meters, ‘food to go’ shops, hospitality sector entities, and potentially online retailers. Yet, these exemptions necessitate further validation to ensure smooth operation amidst potential complexity.

Consumer impact

For consumers, the scheme may affect shopping budgets. 70% of consumers state that premium prices dissuade them from purchasing sustainable products so it’s important to consider how the DRS is positioned. Therefore, it must be clearly advertised that a full refund is available on the return of an undamaged container. Although all costs are refundable, consumers must adapt to the additional upfront cost, as well as an obligation to return bottles or cans to claim their refund and thereby minimise financial impact.

Also noteworthy is the possible increased volume of packaging to be stored and returned. Consumers might resort to more frequent shopping trips, potentially negating the scheme’s environmental benefits.

Moreover, the scheme might pose implications for consumers who rely on or prefer online shopping due to hectic schedules, accessibility issues, etc. These are considerations that need to be carefully addressed as the scheme begins to roll out.

Summary

The nationwide DRS will bring about significant changes for businesses and consumers. While the scheme is an important step towards creating a circular economy and improving recycling rates, it also carries challenges such as potential higher operational costs for retailers and additional upfront costs for consumers. Businesses must now strategically prepare for these shifts, while consumers will need to adapt their habits. It will require a collaborative effort to ensure the DRS becomes a successful, sustainable initiative for Ireland.

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M&S Ireland launches ‘Brands at M&S’ – with 14 Global Brand Partners Welcomed

Julie Nash — Thu, 13 Apr 2023 12:33:46 +0000

Marks & Spencer has announced the launch of ‘Brands at M&S’ on the Republic of Ireland website, welcoming 14 new third-party brands as it continues to reposition for growth as a leading omni-channel retailer. The new brand partners, including Nobody’s Child, Triumph and Jack & Jones among others, will be available to shop online this month.

The third-party brand partners have been carefully curated and will welcome more than 750 new products to M&S.ie across womenswear, lingerie, menswear and childrenswear to complement and enhance the core M&S ranges. The brand partners will broaden customer appeal and offer customers more reason to shop at M&S – with all of the advantages from free Click & Collect to the Sparks loyalty programme.

Nobody’s Child, Ted Baker, Toms, Musto, Lyle & Scott, Superga, Triumph, Sloggi, DKNY, Kate Spade, Hotmilk, Jack & Jones and Jack & Jones Junior and Cole Haan are the first brands to join Brands at M&S in the Republic of Ireland this month.

An exciting mix to complement the core M&S ranges

Commenting on the launch, Philip Conlon, Head of Division, Ireland at Marks & Spencer said: “We are pleased to be introducing ‘Brands at M&S’ to our Republic of Ireland website. This exciting mix of third-party partners will expand our offer in Clothing & Home, offering brands our customers know and love, as well as introducing them to new brands that they haven’t yet discovered. As we continue to reposition for growth, we also remain committed to developing the quality, style & value of our own ranges and sharing them with customers on M&S.ie with energy, confidence & style.”

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Lucozade Alert blasts into the new year with fresh new packaging

Julie Nash — Wed, 18 Jan 2023 20:17:05 +0000

Lucozade Alert is back with a bang in 2023 with a fresh new look, designed to drive even better on-shelf standout and appeal to more shoppers.

Lucozade Alert have now invested in a new striking and colourful 500ml can design across all three flavours; Original Lucozade, Cherry Blast & Tropical Burst and will be launching in market from January. The brand has achieved a worth of €1.5 million[1] retail sales value since its 2022 launch and continues to grow.

Data reveals 75%[2] of adults have reported concerns about tiredness, and the Lucozade Alert range responds to a clear consumer need, as a high caffeine energy drink with Vitamin B3 to help combat tiredness, from the trusted brand Lucozade. It provides a hit of energy that gives consumers a much-needed boost and a blast of fruity flavour.

The stimulation market is the fastest growing soft drinks segment in recent years[3] and the new packaging will help retailers drive sales across the range.

Sara Philpot, Senior Brand Manager Lucozade Energy Ireland, said:

“The Stimulation energy segment in Ireland has seen strong growth so a genuine opportunity for retailers to drive their sales across 2023 is there. The newly updated pack design offers a fresh opportunity to drive shopper engagement while encouraging trial and additional purchases, in order to help deliver an even bigger up-tick in sales”

New Lucozade Alert packaging will be available from 9^th January. The launch will be supported by TV, OOH, VOD, digital and social media advertising, and PR.

NielsenIQ Total Scantrack ROI, Value Sales YTD w/e 4th Dec
SBF GB&I Category strategy insight
SBF GB&I Category strategy insight

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Gen Z Embraces Alcohol Free Christmas, according to Musgrave MarketPlace report

Julie Nash — Wed, 14 Dec 2022 13:48:38 +0000

Musgrave MarketPlace reports post pandemic surge in sales of low and non-alcoholic drinks category.

Sales in the low and non-alcohol category grew by 141% vs 2021
18 – 24-year-olds turn to Alcohol-Free options as they try to drink less
Over half of over 55s won’t consider alcohol free drink option
Zero alcohol beer and mocktails are the most popular alcohol-free options

Cold turkey is not just for St. Stephen’s Day it seems, as research announced today reveals that Irish Gen Zs are more likely to partake in an Alcohol-Free Christmas.

The research commissioned by Musgrave MarketPlace, shows that the younger generation is leading the way when it comes to growth of the Zero Alcohol category, choosing alcohol substitutes to get into the party spirit rather than an all or nothing approach to Christmas festivities.

While almost a third of the whole nation agreed a zero-alcohol option is a good way of feeling involved when driving on a night out, it’s only the 18–24-year-olds who are actively trying to drink less when reaching for a Zero Alcohol drink, with 30% doing so for health reasons or to avoid ending up hungover.

Zero alcohol

Zero alcohol beer and mocktails are the most popular beverages across the nation, with 18–34-year-olds opting for the fruity, easy to drink mocktails, which still let them feel a sense of celebration and get their party on.

Conversely the research showed that a quarter of all Irish adults still can’t see any occasion where they would opt for the Alcohol-Free option, with 56.5% of over 55s in particular claiming they wouldn’t drink an alcohol-free beverage.

This was also the age group that felt the least confident to do so in the company of others who were taking alcohol. The 35-44 age group said they would feel the most confident to go alcohol free on a night out but interestingly their intentions to do so this Christmas didn’t mirror this confidence.

Variations by county

When broken down by geography, Longfordians felt the least confident to skip the alcohol, even if it meant a hangover free day.

While Leitrim natives favour 0% beer, counties Roscommon, Cavan and Louth favour Zero Cider.

In Monaghan, Westmeath, Sligo and Offaly, No Secco, was the non-alcoholic beverage of choice while Clare residents opted for Seedlip, the aromatic botanical mix that mimics the taste of Gin.

Ken Allan, Head of Beverage at Musgrave MarketPlace said “The Irish market has seen significant growth of 11.2% in the Low & No Lager category this year, generating €22.4m in sales to September this year according to CGA figures. Incredibly, our growth figure vastly outperforms the market, with the low and no alcohol category growing by 141% year to date. This is due to on-trade trends like consumers switching to non-alcohol options due to health reasons as well as the introduction of several draught options in the category.

“Our research today shows Gen Z are really leading the way in terms of the Zero Alcohol category with an appetite for tasty premium Alcohol-Free options that still allow them to feel like they’re celebrating and enjoying a special moment, or just letting their hair down albeit in a non-traditional way.

“We know this generation to be un-afraid of treating themselves with premium purchases but who also look after their bodies and minds with healthier options be that food, drink and mental and physical wellbeing so it’s no surprise they’re making waves and driving innovation and creation within this burgeoning category.”

Bailey’s brigade

The research revealed a surprising penchant among Gen Zs (18–24-year-olds) for Bailey’s. More than 20% of this age group choose Bailey’s compared to just 15% of 35-year-olds.

Donegal, Offaly and Longford ranked top for Bailey’s fans, as well as Wexford, Westmeath and Waterford whereas Prosecco pipped Bailey’s to the top of the nice list for counties Clare, Meath and Monaghan.

Fizz & Sparkle

Fizz and sparkle (Prosecco and Champagne) were most prevalent among the 25-44 age ranges, with Prosecco still being the leading choice among the nation’s female drinkers.

The research which was commissioned by Musgrave MarketPlace found that certain counties are also all about the fizz with Dublin, Kilkenny and Wicklow the only places where Prosecco and Champagne ranked top for festive tipples, beating their creamy competitor.

Some regional variations were also revealed:

On the brisk west coast of the country, Galway locals prefer hot whiskey while Cork and Kerry natives are all about the mulled wine at the most magical time of the year.

Monaghan was the only county were American favourite egg nogg ranked at all while in Cavan, brandy is the number one choice at Christmas.

Mayo, Meath and Wexford citizens are also partial to an Irish coffee ranking the 2^nd most popular choice for festive drinks.

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Coca-Cola renews partnership with FoodCloud & FareShare

Julie Nash — Wed, 07 Dec 2022 10:30:33 +0000

‘Win a meal, Give a meal’ to FoodCloud this Christmas

Coca-Cola is once again partnering with FoodCloud and FareShare for Christmas 2022, this year the initiative will redistribute over 143,000 meals across Ireland and Northern Ireland. With one in every nine people in Ireland living on an income below the poverty line* and inflation tracking at 8%**, Coca-Cola want to support FoodCloud and FareShare, part of Homeless Connect, in reaching those in need during this particularly challenging time of year.

As part of its longstanding partnership with both FoodCloud and FareShare, Coca-Cola donates product throughout the year, thereby reducing food waste and preventing the associated carbon emissions of food waste.

To build on this partnership this Christmas, shoppers in Tesco stores across Ireland will be in with a chance to win a meal out as part of a ‘Win a Meal, Give a Meal’ campaign and for every entry received, Coca-Cola will donate a meal to FoodCloud, up to the value of €20,000 representing 67,000 meals set to be donated this year. The lucky winners will receive a voucher worth €500 with 10 gift cards available.

As the Coca-Cola Christmas Truck returns for the first time since 2019, visitors to the Real Magic Christmas Experience will have the opportunity to add their name to a donation to FoodCloud in Dublin and FareShare in Belfast funded by Coca-Cola. As part of this experience Coca-Cola will donate €15,000 to FoodCloud supporting the redistribution of 50,000 meals and £8,000 to FareShare supporting over 26,000 meals. In addition, FareShare will receive £10,000 worth of Coca-Cola product over the festive season.

With branding onsite at the Real Magic Experience, Coca-Cola hopes to raise awareness of the crucial role both organisations play to address food insecurity and reduce food waste.

Tom Burke, Corporate Affairs and Sustainability Director, Coca-Cola HBC Ireland and Northern Ireland said: “FoodCloud and FareShare are longstanding partners of Coca-Cola, these organisations do incredible work to fight food waste and crucially to combat food insecurity. In addition, reducing food waste helps to eliminate thousands of carbon emissions and supports our journey to becoming a truly circular organisation. With consumers battling significant cost increases this year we hope this partnership can help ensure Christmas finds its way to those in need across the island.”

Suzanne Delaney, Development Director of FoodCloud said: “Christmas this year will be significantly more expensive for families across Ireland and with one in every nine people* in Ireland living on an income below the poverty line we are working to help those who need it most. FoodCloud is delighted to be working with Coca-Cola this Christmas to ways to highlight the importance of reducing food waste and to support those in need.”

Méabh Austin, NI Development Manager, FareShare, part of Homeless Connect said: “Approximately 316,000 (17%) of people in Northern Ireland lived in relative income poverty in March 2021 according to the Department of Communities. This static comes from before the significant cost increases we have seen in 2022, demonstrating the increased need to tackle food poverty this festive season. We are delighted to be working with Coca-Cola on this initiative for a second year to tackle food poverty.”

Rosemary Garth, Tesco Ireland Communications Director said: “We are long term supporters of FoodCloud and advocates for reducing food waste and redistributing edible surplus food. This ‘Win a meal, Give a meal’ initiative with Coca-Cola seeks to enable customers to support the incredible work of FoodCloud.”

*Social Justice Ireland, October 2022

**ESRI, October 2022

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