EPR Rules Could Leave Brands Paying Thousands More for Cold-Chain Packaging
Cold chain delivery.
Brands could be facing significant cost increases under the UK’ s Extended Producer Responsibility( EPR) regulations, with cold-chain packaging emerging as a key area of impact, according to Hydropac.
While the new regulations are now in force, there remains considerable
32 FDPP- www. fdpp. co. uk uncertainty across industry about who is affected and what businesses need to do.
In particular, many organisations are still unaware that they may now have reporting obligations under the expanded EPR framework, or that packaging material choices can have a direct impact on future compliance costs.
The New Regulations
Under the UK’ s Extended Producer Responsibility( EPR) regulations, businesses classified as‘ large producers’- those with annual turnover above £ 2 million and handling more than 50 tonnes of packaging each year- are required to report packaging data, meet recycling obligations and pay EPR waste disposal fees.
This‘ large producer’ threshold captures a growing number of manufacturers and direct-toconsumer brands as the frozen and chilled category continues to expand.
Under EPR regulations, these businesses may be required to fund the disposal of packaging that enters household waste streams. Crucially, the fees are based on the type and weight of material classified as packaging waste.
For pet food, food and bev and DTC brands operating at“ large producer” scale, packaging choice is now a material cost driver, with a clear and measurable financial gap between gel and water-based ice packs.
What Does This Mean for Brands?