Packaging waste regulations create investment uncertainty in the brewing industry – “Incredibly challenging”

New Packaging Waste Regulation in Europe: Challenges and Opportunities for the Finnish Brewing Industry

The European Union’s packaging waste regulation, if implemented as agreed upon, is expected to result in significant investment requirements for the Finnish brewing industry. This regulation will lead to the creation of two different bottle return systems and require investment of hundreds of millions of euros for the brewing industry.

The member companies of the Brewery Association, such as Hartwall, Olvi, and Sinebrychoff, are impacted by the regulation, which mandates that at least ten percent of beverages must be sold in reusable packaging by 2030. However, CEO Tuula Loikkanen expressed hope that the industry can influence the regulation with the EU Commission’s executive instructions in the future. She believes that unpredictability poses challenges for businesses making investment decisions and renewing production lines.

The Finnish brewing industry is concerned about the interpretation of the regulation and its applicability to different types of drinks. Implementing this regulation will require not only investment from the industry but also changes in trade practices and bottle return systems. Logistics systems will need to be revamped to accommodate refillable bottles, which poses challenges for breweries located in different regions. Moreover, differences in existing bottle return systems in Central Europe are also key issues for this sector.

However, it is crucial that this legislation is implemented with clarity and consistency while acknowledging its importance in reducing packaging waste. The brewing industry hopes to work with the EU Commission to address concerns and find solutions that align with national practices and goals.

In conclusion, while this legislation aims at reducing environmental waste by promoting sustainable packaging solutions, it creates significant challenges for businesses operating within this sector. It requires substantial investments and changes in production processes that could affect their bottom line’s profitability significantly.

On a positive note, however, Finland has been known as an advocate for sustainable forestry practices since long ago. This new legislation could further strengthen Finland’s position as a leader in sustainable forestry management.

Overall, it is essential to balance environmental protection measures with economic viability while ensuring consistency across all sectors involved in implementing such regulations.

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