CCA will pass on cost of NSW Container Deposit Scheme to customers

Posted by Andrea Hogan on 21st August 2017

Beverage bottler, Coca-Cola Amatil, says it will pass on the costs of the NSW Container Deposit Scheme to its customers.

The NSW Container Deposit Scheme requires beverage producers to refund customers 10 cents for every container returned for recycling and will come into effect December 2017.

Coca-Cola Amatil (CCA) said after analysing the costs involved in the first three months of the scheme it has decided to recover costs by passing them onto the customer.

CCA estimates that for the 2016 calendar year the total number of eligible containers in NSW was 3.5 billion. CCA believes it was responsible for approximately 25 per cent of these containers.

The NSW Container Deposit Scheme requires producers pay for the 10 cent refunds, administration fees, handling fees and reverse vending machines that accept containers for recycling.

CCA said it is currently uncertain how customers and consumers will respond to the scheme and so it cannot therefore estimate the impact on its future earnings.

When first announced, the NSW Container Deposit Scheme was described as the single largest NSW initiative to reduce litter. The scheme aims to reduce litter in NSW by 40 per cent by 2020.

Approximately 160 million drink containers are estimated to be littered in NSW every year.


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