The UK scheme begins in October 2027. The principle is simple: buy a drink in an eligible plastic bottle or metal can, pay a deposit, return the empty container and get your money back. There's a great deal to like about it. Separately collecting PET bottles and aluminium cans should produce cleaner, higher-quality material, particularly for manufacturers wanting recycled material suitable for making new bottles.
Whether DRS is a good idea isn't really my question, it's where we expect people to return the containers. The British model is predominantly retailer based. Supermarkets, grocery stores, convenience stores and newsagents selling drinks within the scheme will generally have to provide return points unless exempt. Smaller urban shops below 100 square metres are already exempt, and there is industry speculation – although not confirmed Government policy – that the practical threshold could eventually rise further. If that happened, Britain's DRS could effectively become largely a supermarket return scheme and there's nothing inherently wrong with that.
Ireland demonstrates why. Lidl was an early adopter of its Deposit Return Scheme and subsequently installed two reverse vending machines at every store in the Republic. Within seven months of the national scheme beginning, Lidl had processed 100 million bottles and cans – almost one fifth of all containers returned nationally at the time. Ireland passed one billion returned drinks containers in February 2025, with the billionth returned at a Lidl store in Dublin. The supermarket model clearly works.
There are also sound commercial reasons for retailers to want this material. Lidl's parent, the Schwarz Group, which also owns environmental business PreZero, has increasingly developed circular material systems. A PET bottle returned cleanly through a reverse vending machine isn't simply rubbish somebody has handed back. Collect enough of them and you have a valuable industrial raw material - but something interesting is happening rather further away.
Coca-Cola Vietnam has been experimenting with a broader collection network using reverse vending machines and community collection points. One particularly interesting result has come from Ho Chi Minh City's Metro system. After installing reverse vending machines at four Metro stations, Coca-Cola reportedly found collection volumes significantly higher than those achieved elsewhere. That doesn't prove Britain's approach is wrong. But it poses an interesting question about logistics.
The traditional retail model effectively asks: Where did you buy your drink? The Metro model asks: Where will you be when you've finished it?
And that distinction could matter enormously.
Someone buying a bottle of water at lunchtime probably has little intention of carrying the empty bottle back to a supermarket that evening. They may, however, walk through a railway station on their way home. Put the machine there and returning the bottle no longer requires a special journey. It becomes part of a journey they were making anyway and suddenly the potential network looks rather different: railway and underground stations, universities, shopping centres, airports, stadiums, large workplaces and service stations.
Perhaps the most logical measurement when deciding where to install a reverse vending machine isn't the number of square metres inside the building. It's the number of people walking past the machine?
None of this means supermarkets disappear. Ireland proves they can process enormous quantities of material. They have space, staff, established logistics and customers who regularly return but perhaps they should be only part of the network. Britain's regulations already allow organisations outside conventional grocery retail – including schools, gyms, sports centres and community organisations to establish voluntary return points. That means the network could eventually evolve towards the places where people actually return the most containers and that's what makes the Vietnamese experiment interesting.
Coca-Cola hasn't invented a revolutionary recycling technology. What's changing is the thinking about where to put the machine. There's an important difference between designing a recycling system around the organisations selling the product and designing one around the behaviour of the person eventually disposing of the packaging. The first is administratively logical; the second might simply be more convenient and convenience matters as Britain is not starting from zero. Before DRS, around 76% of PET drinks bottles and 71% of aluminium and steel drinks cans were already being collected for recycling. The DRS target is 90%.
With roughly 12 billion PET bottles and 13 billion cans placed on the market annually, reaching 90% means capturing, very approximately, another four billion containers a year that currently escape recycling which raises perhaps the most important question - where are those missing containers?
Britain still has more than a year before DRS begins. Nobody yet knows exactly how consumers will behave or which return points will handle the greatest volumes.
Perhaps Ireland and Vietnam are showing us two halves of the answer.
Supermarkets demonstrate that reverse vending can work at enormous scale. Vietnam suggests that convenience and footfall may determine where it works best.
The deposit may be exactly the right idea – the machine may simply be in the wrong place and that leaves one question worth asking before Britain installs thousands of them: Are we designing DRS around where people buy their drinks or where they actually finish them? More like this (Deposit Return Schemes) - link - more like this (Vietnam) - link







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