Fentimans, the historic soft drink manufacturer established in 1905, has raised serious concerns regarding a proposed glass tax reform. CEO Ian Bray has warned that the tax, part of an ‘extended producer responsibility’ initiative by the Department for Environment, Food and Rural Affairs (Defra), could potentially bring an end to the company’s 120 years of business.
The proposed tax aims to add an estimated £300 per tonne to the cost of recycling glass, a change that has caused significant concern among small businesses. ‘Fentimans has been selling quality soft drinks since 1905. It would be tragic if this inequitable policy destroyed our business after 120 years just because it hasn’t been thought through,’ stated Bray.
The backlash extends beyond Fentimans, with brewers and soft drinks manufacturers similarly voicing their discontent. Trade bodies, including the British Beer and Pub Association, have lobbied Environment Secretary Steve Reed to reconsider the tax. Estimates suggest that the tax could increase costs by 3p to 7p per bottle for the 3.2 billion bottles of beer sold annually in the UK, equating to an additional £84 million to £212 million—a beer duty increase of between 8% and 21%.
Emma McClarkin, Chief Executive of the British Beer and Pub Association, underscored the potential economic impact: ‘These estimated fees provide long-overdue clarity, but they sharply reinforce our concerns about the eye-watering additional costs brewers will be expected to bear from next year and the impact on customers.’ She highlighted the brewing industry’s role in supporting hundreds of thousands of jobs and investing in low-strength and alcohol-free options that align with public health goals, arguing that the sector is already heavily taxed.
Paul Davies, CEO of Carlsberg Marston’s Brewing Company, echoed McClarkin’s concerns while emphasising the brewing sector’s commitment to sustainability. The sector aims to achieve zero packaging waste and ensure 100% recyclable, reusable, or renewable packaging by 2030. However, Davies warned about the financial strain these new costs would impose amid the ongoing challenges of high energy and material prices. ‘We would urge the government to hold constructive discussions with industry about how EPR could be implemented in a way that delivers our shared ambitions for sustainability, whilst also supporting and preserving our treasured national beer and pub culture,’ he said.
British Glass, representing the glass industry, has also called for a delay in implementing the tax, warning of potential significant job losses. The proposals have created tension between the glass sector and other packaging materials such as plastic and aluminium, which have been granted an additional two years of grace before being subjected to similar waste policy costs. Nick Kirk, Technical Director at British Glass, highlighted this disparity: ‘These materials are due to be part of the incoming deposit return scheme in October 2027, but will not be subject to [extended producer responsibility] fees in the meantime, meaning they benefit from an additional two years without waste policy costs.’
Defra has defended the proposed measures, describing them as a crucial step towards reducing waste and advancing a circular economy. A spokesperson from Defra stated: ‘Extended producer responsibility for packaging is a vital first step in cracking down on waste as we move towards a circular economy and we have always been clear these fees are our initial estimates. In line with our collaborative approach, we are continuing to meet the glass industry to discuss more workable approaches, including for how we calculate the cost of glass.’
The proposed glass tax reform has elicited strong reactions from various stakeholders in the beverage industry. While the government maintains that the tax is essential for environmental sustainability, the affected industries argue that the financial burden may undermine their viability. As discussions between Defra and the glass industry continue, the future of longstanding businesses like Fentimans hangs in the balance.