Diageo Australia has released a statement to the New South Wales Government on its position on the proposed container deposit scheme, calling for all spirits-based drinks to be exempt. Currently, ‘spirits in glass containers’ are exempt from the scheme but not liqueurs.

The business is calling for the Government to align itself with South Australia’s scheme, where all ‘spirituous liquor’ (including liqueurs) is exempt.

In May this year, the NSW Government announced an introduction of a 10 cent refund container deposit scheme in the state. The scheme is set to become effective on 1 July 2017, when beverage suppliers will become responsible for the 10 cent refund and associated handling and administration fees. Suppliers have voiced concerns about the impact this will have on them as well as to retail prices. Read more on this here.

Diageo Australia is arguing that spirits shouldn’t be included in the scheme because of the small amount they contribute to waste in NSW.

Kylie McPherson, Corporate Relations and Legal Director at Diageo Australia said, “Spirits make up less than 0.1 per cent of the containers found in public litter bins and as a result have been exempted from the proposed New South Wales scheme.

“However, the wording as it currently stands only relates to spirits in glass containers and not liqueurs, as is the case in South Australia. Drinks such as Bailey’s Irish Cream Liqueur, Pimm’s and Bundaberg Royal Liqueur are not currently exempt from the proposed scheme despite the fact they are generally consumed in either bars or at home. We believe they should be exempted.”

Diageo is also asking for the NSW Government to extend the exemption of ‘sachets of wine for 250 millilitres and above’ to spirits-based drinks, with a number of Diageo’s products (most notably frozen pouches and its ‘bag-in-box’ ready to serve products) packaged in similar containers. The business says that these products are mostly enjoyed by consumers at home.

McPherson added that the introduction of a container deposit scheme in NSW would add major complexity and cost for manufacturers and as a result, consumers too.

Diageo supports the roll-out of the scheme over a two-year period, giving the industry time to adjust to the new regulatory requirements.