Austria: A new beer bottle deposit system, raising refunds to 20 cents, has triggered a surge in ‘bottle deposit tourism’ from Germany. Local retailers face disruptions as consumers seek higher refunds across the border, igniting debates on similar changes in Germany’s own deposit policy.
At the beginning of this month, Austria introduced a significant change to its beer bottle deposit system, more than doubling the deposit for reusable bottles to 20 cents. This alteration has swiftly sparked a surge in what has been termed “bottle deposit tourism,” with consumers crossing the border to cash in on the higher refunds available in Austria. This development is set against the backdrop of an ongoing debate regarding deposit systems in Germany and their implications for local brewers and retailers.
Bottle deposit tourism has taken root particularly around the German-Austrian border, causing notable disruption for retailers and breweries in Germany. Upon purchasing a crate of beer in Germany for a deposit of €3.10, individuals can secure a refund of up to €7 when returning the containers in Austria, effectively incentivising cross-border trips for profit.
Christian Thiel, managing director of the Schönramer Brewery in Petting, highlighted the issue, stating, “In the first few days, the trend was catastrophic.” He noted that the proximity to the border, only 13 kilometres from his brewery, had made it an easy target for such tourism. Thiel recounted incidents where individuals came to his beverage market with trailers filled with numerous crates, only to face refusal at the door.
The Austrian Brewery Association has sought to clarify the situation, indicating that while retailers are legally required to accept returns of household-typical amounts of empty containers, they are not obliged to take back crates from competitors. This has contributed to reports of increased activity at border trading posts, with local retailers observing a rise in returns that far exceeds normal levels. Jeremy Berger, from the Austrian Brewery Association, mentioned that while official data on the phenomenon is lacking, anecdotal evidence suggests a notable uptick in returns.
The raise in deposits has also revived discussions within Germany regarding the feasibility and potential necessity for similar increases in their own deposit system. Thiel expressed support for a deposit increase, suggesting it is essential for the survival of small and medium-sized breweries in Germany. However, the German Brewers’ Association has voiced skepticism about the practicality of such a move, citing potential challenges that have already been explored previously, and the prevailing sentiment that any increase could deter consumers and impose high costs on breweries, estimated to reach several hundred million euros.
The apprehension surrounding the implications of a deposit increase is underscored by fears of widespread consumer hoarding of bottles in anticipation of higher refunds, which could lead to shortages of empty containers, exacerbating an already strained supply chain. It is further complicated by the reality that the procurement costs for bottles and crates have risen significantly, threatening the sustainability of local production.
This recent uproar in the beverage industry reflects deeper financial considerations and regulatory hurdles that defy simple resolutions. The evolving dynamics of deposit schemes are increasingly prominent, and their effects resonate far beyond the border, positioning brewers and retailers in both nations to navigate the challenges of a changing market landscape.
Source: Noah Wire Services
