Deposit Tourism Due to Higher Deposit for Glass Bottles

Reason for the deposit tourism: Since the beginning of February, one receives 3.90 euros more in Austria for a crate with 20 empty reusable bottles than in Germany. This difference is being exploited by many, with reports that even trailers full of crates are being transported across the border. What seems like a good deal for consumers means financial losses for retailers and breweries and revives the discussion about increasing the deposit in Germany.

Higher Deposit in Austria Leads to Deposit Tourism

Specifically, the Austrian brewing industry has increased the bottle deposit from 9 to 20 cents. In Germany, it is 8 cents. Additionally, the beer crate deposit in Austria has been twice as high as in Germany for some time, at 3 euros. However, a normal deposit bottle does not show on which side of the border it was sold, nor from which brewery it comes. Therefore, where the empty bottles are returned from the trade is usually determined by the typically brewery-specific beer crates. The problem thus affects those brewers and beverage manufacturers who sell on both sides of the border. If one of their crates with bottles is bought in Germany and returned in Austria, they are missing exactly the 3.90 euros that the customer gains. Partially - depending on individual agreements - it also affects the trade entirely or partially, according to the Bavarian Brewers' Association.

Breweries Warn Against Profiteering from Deposit Tourism

The effect is still new, but the breweries are already alarmed. "In the first days, the trend was catastrophic," says Christian Thiel from the Schönramer Brewery in Petting. It is 13 kilometers from here to the border, less than 20 to the center of Salzburg. "People are trying to profit at the expense of the brewery and the trade. I know of a case where someone drove up with a trailer with 50 crates to a small beverage market. But they didn't accept it." This is also pointed out by the Association of Austrian Breweries. "Driving up with a trailer full of crates could backfire," says spokesman Florian Berger. Retailers have the right to only accept household quantities of bottles and crates and to refuse the return of products they do not offer themselves. There are no figures on possible deposit tourism, says Berger. "But there are border-near trading partners who report that there is now a bit more going on than usual."

Higher Deposit Aims to Increase Return Motivation

The brewers in Austria have taken advantage of a time window with the significant increase in the deposit. After the introduction of a deposit on plastic bottles and cans of 25 cents at the turn of the year, there was consensus among the 350 mostly small brewers that the beer bottle also urgently needed to be made more valuable, says association spokesman Florian Berger. "It was about increasing the motivation to return." The increase in the deposit from 9 to 20 cents roughly corresponds to the replacement value of a bottle. Every year, around 6 percent of circulating beer bottles ended up in waste glass, residual waste, or the landscape. According to the association, the return mentality had significantly declined in recent years. According to the information, a bottle can be refilled up to 40 times.

Debate About Higher Deposit Also in Germany

In Germany, a debate about increasing the deposit has been simmering for years, which is reignited by the step taken by the neighbor. The background is that the deposit has not been increased for decades and still stands at the 8 cents that resulted from the old 15 pfennigs during the euro conversion. Meanwhile, the procurement costs for empties and crates have long been much higher. 20 cents per bottle, as in Austria, are much closer to the real costs, say the local and also the Bavarian Brewers' Association.

However, a changeover brings several problems. On one hand, brewers are concerned that customers will perceive it as a price increase. Additionally, in such a case, all bottles and possibly also crates in circulation suddenly become more valuable. With around 4 billion bottles in circulation - as estimated by the Bavarian and German Brewers' Association - cent amounts quickly turn into hundreds of millions of euros. And because customers might wait to return them until after the increase, there is a fear of shortages of empties in the worst case. On top of all this, there would be costs for adjusting the return machines in retail.

Tailwind for Proponents of Higher Deposit

Nevertheless, Thiel says: "Fundamentally, we small and medium-sized breweries in Germany also need a deposit increase." However, the German Brewers' Association currently sees little chance of this. Although they say they can understand the increase in Austria and are observing it closely, they have already examined the issue some time ago and found that an increase would be "very difficult to implement." The costs could overwhelm breweries that are already under pressure. Moreover, the markets in Germany and Austria are very different, and the return rate in Germany is much better. Nevertheless, proponents are currently gaining momentum due to the situation at the border.

If there should eventually be an increase in Germany, looking to Austria could be worthwhile. There, an agreement with retailers was made to share the costs of the changeover, says Lothar Ebbertz from the Bavarian Brewers' Association. Additionally, colleagues across the border announced the increase relatively shortly beforehand to reduce hoarding effects and chose February, a month when less beer is typically consumed. The situation is quite different with the single-use deposit that has been in effect in Austria since the beginning of the year. On one hand, it is at the same level as in Germany at 25 cents, and because the bottles are different on both sides of the border, they can only be returned in the country of origin.

(APA/Red)

This article has been automatically translated, read the original article here.