Deposit system puts heavy burden on smaller brewers

DELFI / Domantas Pipas

Lithuania’s small brewers argue that the deposit system in which the same fees for one-off packages are applied to large and smaller producers is unfair.

The success of the deposit system in Lithuania, where buyers pay a 10-cent deposit when purchasing most beverages which they recover when they return the bottle, had forced the administrators of the system introduce additional charges in order to be able to handle high volumes of packaging.

As a result, non-alcoholic beverages, soft drinks and beer will become more expensive in autumn. It is estimated that the price will rise by 10% or more. From November 1, beverage manufacturers and importers will have to pay 2.5 cents for each bottle or container for the deposit system administrator.

AB Kauno Alus commercial director Gintautas Staniulis said that beer prices might grow by more than 2.5 cents because of retailer margins and the value added tax. According to Staniulis, the price of a bottle or a pack of beer will rise by at least 5 cents this autumn.

Lietuvos Žinios

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