Net zero policies threaten future of beer bottles brewers warn

Brewers across the United Kingdom are warning that the introduction of a so-called “glass tax” threatens to severely impact the availability and affordability of bottled beer. The upcoming extended producer responsibility (EPR) scheme is expected to significantly increase the cost of glass packaging, prompting a potential shift across the industry toward cans. The British Beer and Pub Association (BBPA) has voiced concerns that the tax could lead to a decline in product variety, higher prices, and even the extinction of some beloved ales.

Under the EPR scheme, which is set to come into effect on 1 April 2025, businesses will be charged fees based on the weight of their packaging materials. While the plan is designed to encourage recycling and contribute to net zero goals, the disproportionate burden on glass – one of the heaviest common packaging options – has drawn substantial criticism. According to British Glass, the fees for glass are projected to be 49 times higher than for lighter, less recyclable options such as aluminium.

Industry leaders, including brewery founders and associations, have warned that the tax will erode profit margins for smaller producers and push up consumer prices. Currently, brewers make just 3 pence of profit per 500ml bottle sold, but this tax will add approximately 7 pence to the packaging cost of each bottle. Leading brewers point out that this may eliminate any profit margin, force producers to raise prices, and potentially shift bottling to aluminium cans on a large scale. Shepherd Neame Brewery’s owner Jonathan Neame emphasised glass remains the ideal material for maintaining product quality and strength, despite its rising costs under the scheme.

The “glass tax” is expected to affect not just beer but also spirits and wine, with price increases likely to range from 12 pence for a bottle of wine to 18 pence for a bottle of spirits, according to the Wine and Spirit Trade Association. Many consumers may turn to pubs for draft beer, which could present better value than purchasing bottles for home consumption under the revised tax rules. Some brewers predict a resurgence in pub attendance as result of the pricing disparity.

Beyond cost pressures, industry figures argue the scheme risks jeopardising jobs in the UK glass sector, which employs 120,000 people. British Glass has voiced fears of layoffs if manufacturers shift away from glass as the preferred packaging option. Critics from various industries have described the EPR as a poorly planned policy, with companies like Marks & Spencer also calling on the government to delay its implementation.

The Department for Environment, Food and Rural Affairs (Defra) has defended the move as a vital step in reducing waste and boosting recycling. According to the department, the reforms could lead to the creation of 21,000 jobs and unlock over £10 billion in recycling investments over the next decade. However, mounting concerns from businesses suggest that more collaboration is required before the policy’s rollout to prevent damaging unintended consequences.