Coca-Cola amongst drinks giants demanding tens of millions in compensation over delayed Scottish recycling scheme

Soft drinks giants Coca-Cola and Red Bull are amongst a rising record of corporations seeking to declare tens of millions of kilos in compensation after the collapse of Scotland’s controversial deposit return scheme, Sky News understands.

The Scottish authorities’s recycling plans, which might have seen consumers pay an additional 20p on single-use bottles and cans, has been delayed till no less than October 2025.

The drinks trade had invested tens of millions of kilos making ready to start operations in March 2024, regardless of many arguing it could have imposed doubtlessly deadly prices on their companies.

Some senior figures additionally raised issues the scheme would have created a commerce barrier between Scotland and the remainder of the UK.

On Wednesday, Holyrood blamed the collapse of Scotland’s system on the UK authorities, after Downing Street dominated it may solely go forward with out glass bottles included in it.

With comparable schemes in the remainder of the UK not resulting from come into impact till 2025, the Scottish authorities sought an exemption from the Internal Market Act – which regulates commerce within the totally different elements of the UK following Brexit.

Sky News understands the British Soft Drinks Association, which represents Coca-Cola, Irn-Bru makers AG Barr and Britvic, shall be seeking to declare compensation for the “millions wasted” on making ready for a bespoke Scottish system which isn’t going forward.

Read extra:
Scotland’s deposit return scheme ‘cannot go forward as deliberate’
Government accused of ‘sabotage’ over Scottish bottle return scheme
Forbes: Deposit return scheme wants transforming to ‘keep away from job losses’

Innis and Gun, one of many UK’s largest craft beer companies, has additionally instructed Sky News it’s “carefully considering” whether or not to sue.

The Edinburgh-based producer says it’s “consulting” with the trade about whether or not to say compensation from Holyrood ministers amid “huge frustration” on the wasted prices.

Founder Dougal Sharp stated: “I am hugely frustrated that we have a lot spent a lot of time, money and effort in a scheme that we have been warning the government about for years was not right.

“It has price us many, many hours of labor. It has price us some huge cash. We will seek the advice of with our colleagues and think about rigorously our subsequent steps. Every firm shall be seeking to shield its monetary place.”

Scottish Secretary Alister Jack previously rejected a suggestion from First Minister Humza Yousaf that the UK authorities ought to choose up the invoice if the scheme didn’t go forward as deliberate.

The Scottish authorities has been approached for remark.