With the launch of the Deposit Return Scheme (DRS) across England, Scotland and Northern Ireland set for 1 October 2027, convenience retailers are entering the biggest change to drinks recycling in a generation. While much of the industry discussion has focused on compliance, registration and reverse vending machines, the reality is more nuanced. For symbol groups, independents and forecourt operators, the decisions made over the next year will influence not only operational readiness but also footfall, customer loyalty and long-term competitiveness.
Drawing on insights from Exchange for Change, Coca-Cola Europacific Partners and TOMRA Collection, this article explores what retailers need to know about their obligations, the financial realities behind the scheme, and the opportunities available to stores that choose to position themselves as convenient recycling destinations. As the countdown to October 2027 continues, the key question is no longer whether DRS is coming, but how retailers can make it work for their business.
Based on one session delivered at the National Convenience Show, part of The UK Food & Drink Shows 2026. Edited into an evergreen article by William Reed Ltd.
Speakers
- Samantha Walker, DRS project lead, Coca-Cola Europacific Partners
- Raymond Gianotten, interim operations development lead, Exchange for Change
- Sondre Henningsgård, UK managing director, TOMRA
Host not quoted as opinion-speakers: Aidan Fortune, editor, Convenience Store.
Quick read summary
- Every retailer selling in-scope drinks containers will need to charge a deposit and register with the Deposit Return Scheme from October 2027, regardless of whether they host a return point.
- Installing a return point is not mandatory for all stores, but retailers should assess their space, customer missions and local competition well before launch.
- Producers, not taxpayers, will fund the scheme through producer fees, unredeemed deposits and recycling revenues, with support available for smaller retailers.
- Evidence from existing schemes suggests return points can drive repeat visits, larger baskets and increased customer loyalty when managed effectively.
- The most important first step is understanding your store's retail selling space, as this will determine whether you may qualify for an exemption from hosting returns.
What does the deposit return scheme actually require of a store?
On 1 October 2027, a deposit return scheme launches across England, Scotland and Northern Ireland, administered by Exchange for Change. It covers single-use PET plastic bottles and metal cans between 150ml and 3 litres.
Raymond Gianotten, interim operations development lead at Exchange for Change, has worked in deposit schemes for almost twenty years and previously ran the Dutch scheme. He set out three reasons the policy exists: higher collection volumes, cleaner material producing better recycling quality, and less litter on the street.
The obligations divide into two categories that retailers routinely confuse. Every store selling in-scope containers must charge the deposit and register with the scheme. Hosting a return point is a separate question, and exemptions exist.
Stores with retail selling space below 100 square metres can apply for automatic exemption, with case-by-case assessment between 100 and 200 square metres based on proximity, building constraints and hygiene. Guidance published by Co-op Wholesale in April 2026 narrows the automatic threshold to urban areas and notes that further criteria were due in the second quarter of 2026, so treat 100 square metres as an indicator rather than a guarantee until Exchange for Change confirms it.
Who pays for all of it?
The financing question drew the sharpest audience challenge of the session, from an attendee asking where the refund money comes from. The answer sits in producer responsibility rather than taxation.
Producers selling drinks in bottles and cans carry both the collection targets and the cost of running the scheme. Three revenue streams fund it: income from collected material sold for recycling, deposits that consumers never redeem, and a per-container fee paid by producers to close any remaining gap. Raymond described the design as netting to zero rather than generating profit for anyone in the chain.
Two support mechanisms were confirmed as in progress for retailers. Grants of up to £6,000 will be available to smaller independent retailers investing in a reverse vending machine, and a handling fee consultation was under way with an announcement expected before summer 2026.
Is a return point a cost or a footfall driver?
Most retailers hear the deposit return scheme as an unfunded obligation. The panel argued the opposite, and did so with numbers rather than optimism.
Sondre Henningsgård, UK managing director at TOMRA Collection, cited research across existing schemes showing that a third of customers who have a poor return experience take their shopping elsewhere. The corollary is more useful.
"The returning recyclers are valuable shoppers because as it's usually part of a planned activity, they also usually spend more on that shopping trip." - Sondre Henningsgård, UK managing director, TOMRA Collection
A returned container is therefore a scheduled visit with a basket attached, which is precisely the mission-led footfall both wholesalers are chasing. The largest return point in Europe is currently a petrol forecourt in Ireland running three multi-feed machines and processing roughly ten million containers a year, a site that treated the obligation as a business line.
Space objections came up repeatedly. Machines range from half a square metre to industrial scale, and Henningsgård’s argument was that the worst available choice is offering nothing while a neighbouring store offers something and takes the traffic. The operational reality is closer to running a vehicle than installing a vending machine, involving bin changes, wipe downs, receipt paper and separate waste collection outside normal refuse arrangements, at a frequency ranging from twice daily to weekly depending on volume.
Will shoppers cope with the change?
Samantha Walker, DRS project lead at Coca-Cola Europacific Partners, has spent more than twenty-five years at the business in commercial roles and is running the eighteen-month transition.. She pointed to the Republic of Ireland, where collection rates rose from 49 to 90 per cent and litter fell by half after launch.
"Actually, people adapt quickly, particularly when there's a financial incentive to do so ." - Samantha Walker, DRS project lead, Coca-Cola Europacific Partners
Behavioural change at the fixture is smaller than most retailers expect, with 75 to 80 per cent of shoppers making no format change at all after launch. Preparation is therefore less about range and more about communication, and Walker recommended shelf-edge pricing showing the product price and the deposit separately, alongside staff who can explain where a deposit can be redeemed if the store is not a return point.
| In the Republic of Ireland, recycling rates rose from 49 to 90 per cent and litter fell by half after the deposit return scheme launched.
Wales sits outside this timetable. The Welsh scheme includes glass, its administrator tender was reissued in 2026, and glass containers are expected to be accepted in stores without carrying a deposit until 2031.
How should a retailer prepare for the Deposit Return Scheme before October 2027?
The speakers approached the issue from different angles, but their advice forms a practical roadmap for retailers planning for DRS implementation.
1. Measure your retail selling space accurately. Whether you qualify for an exemption, require a case-by-case assessment, or are expected to host a return point depends on the size of your store. This should be the starting point for every retailer.
2. Decide early whether to become a return point. Don't view the decision purely as a compliance exercise. Weigh the operational requirements against the potential footfall, basket spend and loyalty benefits that return services can generate.
3. Understand the funding model. Familiarise yourself with handling fees, producer funding and available support, including grants of up to £6,000 for eligible independent retailers investing in reverse vending technology.
4. Plan your in-store operation. Whether using manual take-back or a reverse vending machine, consider storage, staffing, cleaning routines, waste collections and customer traffic flow well ahead of launch.
5. Review your local competitive landscape. If nearby stores offer container returns and you do not, customers may choose to combine recycling and shopping trips elsewhere.
6. Prepare staff for customer questions. Teams should understand how deposits work, which containers are included, where returns can be made and how the process operates within your store.
7. Update pricing and communication materials. Clear shelf-edge labels and point-of-sale messaging will help customers understand the difference between the product price and the refundable deposit.
8. Work closely with suppliers. Drinks manufacturers are already preparing new barcodes and scheme logos. Retailers should stay informed about packaging changes and implementation timelines.
9. Treat DRS as a customer experience opportunity. The most successful retailers in established schemes have viewed container returns as a service that creates repeat visits rather than simply another regulatory obligation.
FAQ
When does the deposit return scheme start, and who has to take part?
The scheme launches on 1 October 2027 in England, Scotland and Northern Ireland. Every retailer selling in-scope drinks containers must charge the deposit and register with Exchange for Change. Hosting a return point is a separate obligation, and smaller stores can apply for exemption based on retail selling space.
Do I have to install a reverse vending machine?
No. Manual take-back is a legitimate option, particularly for low volumes, and exemptions exist for stores constrained by size, building or proximity. Grants of up to £6,000 were confirmed as available to smaller independent retailers who do choose to invest in a machine.
Conclusion
For convenience retailers, the Deposit Return Scheme is often framed as a compliance challenge, but the discussion at the National Convenience Show suggests it should be viewed as a commercial decision as well. While registration and deposit charging will be mandatory for all retailers selling in-scope drinks containers, the bigger strategic question is whether to participate as a return point and how to make that role work for the business.
The experience of established schemes shows that consumers adapt quickly to deposit systems, and that stores offering convenient return facilities can benefit from regular, mission-driven visits. At the same time, retailers will need to assess the operational demands, space requirements and staff training needed to deliver a positive customer experience. Success is likely to depend less on the technology itself and more on the planning that happens before launch.
With October 2027 approaching, retailers have a valuable window to understand their obligations, evaluate the commercial opportunity and prepare their teams and stores. Those who start planning early will be best placed to turn a regulatory change into a competitive advantage, while those who leave decisions until the final stages risk missing both the operational and commercial benefits that the scheme could bring.
Author and speakers
- Samantha Walker, DRS project lead, Coca-Cola Europacific Partners. Walker has worked at Coca-Cola for more than twenty-five years across a range of commercial roles and now leads the company’s deposit return scheme implementation. She is running an eighteen-month product transition covering barcodes, labelling and retailer communication ahead of the October 2027 launch.
- Raymond Gianotten, interim operations development lead, Exchange for Change. Raymond has worked in deposit return systems for almost twenty years, including as managing director of the Dutch scheme, and joined Exchange for Change in 2025. Further biographical detail to confirm.
- Sondre Henningsgård, UK managing director, TOMRA Collection. TOMRA is the largest provider of container return technology in the UK market, operating in close to 70 markets over 54 years. Further biographical detail to confirm.
Sessions this article draws on: "Countdown to 2027: Preparing for the Deposit Return Scheme".
Based on sessions delivered at The UK Food & Drink Shows 2026. Edited from the original transcripts for clarity, structure and long-term reader value.
