Wales appoints glass deposit operator for DRS scheme launch 2026

Key Points

• Exchange for Change selected as Wales’ Deposit Management Organisation for introduction of DRS in October 2027
• Unlike England, Scotland and Northern Ireland, Wales will start the scheme with glass drinks containers from day one
• Four-year transitional period for glass: no deposit or labelling obligations until October 2031
• The selection comes after several months of dispute about number of reverse vending machines and operator specifications
• The appointment was made in a written ministerial statement by Sustainability Minister Llŷr Gruffydd on 20 August 2026
• The drinks industry was pleased with the selection but expressed concerns regarding operations and requested no more delays
• Twelve Welsh drinks firms had previously contacted the government calling for the appointment of Exchange for Change

Wales (Wales Times) August 20, 2026 – The Welsh Government has confirmed the appointment of Exchange for Change as the Deposit Management Organisation (DMO) for its Deposit Return Scheme (DRS), ending months of uncertainty that had raised concerns about potential delays to the October 2027 launch. Sustainability Minister Llŷr Gruffydd made the announcement in a written statement, describing the appointment as the “next step” towards improved recycling and reuse across Wales.

As reported by BBC Wales, officials had been in discussions with Exchange for Change for several months after key differences emerged between what the Welsh Government wanted from the operator and what the organisation was prepared to deliver. A major sticking point concerned the number of reverse vending machines required to handle glass containers at the scheme’s outset, with the Welsh Government understood to require 3,500 machines while Exchange for Change proposed launching with 100 suitable machines around the country.

When asked by BBC Wales whether the Government had changed its requirements for glass vending machines, Mr Gruffydd said he “wasn’t going to get into any particular figures” but acknowledged that “we have to accept that we’re on a journey here”, adding that the number of return points “would obviously increase” over time.

Why is Wales including glass in its deposit return scheme?

Wales remains the only UK nation to include glass drinks containers in its DRS, a decision that has faced significant backlash from the drinks industry over concerns about increased prices and reduced product choice. Under the arrangements announced by the Welsh Government, plastic (PET), metal and glass drinks containers will all be included from the scheme’s launch in October 2027.

However, in line with the Deposit Scheme for Drinks Containers (Wales) Regulations 2026, a four-year transition period will apply to glass drinks containers. During this period, running from October 2027 to October 2031, glass drinks containers will be exempt from DRS labelling requirements and will carry a zero pence deposit, meaning consumers will initially pay no deposit on glass bottles.

As reported by Mark Mansfield of Nation.Cymru, Mr Gruffydd stated:

“The Scheme will include plastic (PET), metal and glass drinks containers from day one, but in line with the Deposit Scheme for Drinks Containers (Wales) Regulations 2026 a four-year transition period will apply to glass drinks containers, during which glass drinks containers will be exempt from labelling requirements and carry a zero pence deposit.”

Referring to concerns expressed by the drinks industry about increased costs and the complexity of having glass in Wales’ DRS, Mr Gruffydd said the Government would be “working on exclusions for smaller producers and flexibilities around smaller retailers as well”.

How does Wales’ DRS differ from the rest of the UK?

The appointment means Exchange for Change will now operate as the single Scheme Administrator across all four UK nations, a development welcomed by industry bodies as crucial for delivering a successful DRS by October 2027. However, Wales’ scheme differs fundamentally from those planned in England, Scotland and Northern Ireland, which will initially cover plastic bottles and metal cans but explicitly exclude glass.

The UK Government decided not to include glass in England, Scotland and Northern Ireland due to concerns about safety, storage and recycling quality. Wales’ scheme had been developed by the previous Labour administration and the new Plaid Cymru Welsh Government has retained the controversial decision to include glass despite industry pressure to reconsider.

Industry representatives have warned that a separate approach could increase costs, complicate labelling and distribution, and reduce the range of products available in Wales. The Welsh Conservatives have also opposed a separate Welsh system and called for a common UK-wide approach.

What has the drinks industry said about the appointment?

The drinks industry welcomed the appointment of Exchange for Change, with British Soft Drinks Association Director General Andy Bagnall describing it as “a crucial milestone in delivering a successful DRS by October 2027”. However, Mr Bagnall warned that preparations were “already well advanced for launching the DRS in October 2027 for England, Scotland and Northern Ireland”, and “delivering the scheme in Wales within such a short timeframe means there can be no further delays”.

As reported by BBC Wales, Mr Bagnall said: “Wales’ decision to include glass from day one also creates significant additional operational complexity, and the Welsh Government must continue to be realistic about what’s possible in the time.” He added: “We look forward to working constructively with Exchange for Change, the Welsh Government and partners across the supply chain to address these challenges and deliver a Deposit Return Scheme in Wales that increases recycling, reduces litter, and works for consumers, businesses and the environment.”

Exchange for Change called the appointment an “important milestone” that would help deliver an “effective and efficient scheme”. The company said the DRS was a “transformational opportunity to change how we manage waste in the UK”, adding it was “looking forward to working closely with the Welsh Government to take the scheme forward”.

Last month, 12 Welsh drinks companies, including Brains Brewery, Radnor Hills and Brecon Carreg, wrote to Mr Gruffydd urging him to appoint Exchange for Change. They argued that using the same organisation as the rest of the UK would reduce the risk of Wales being left without a fully operational system when the schemes launch in October 2027. The companies also urged the new Plaid Cymru Welsh Government to reconsider its approach to glass, pointing to Wales’ existing record on glass recycling, with 92% of household glass already collected for recycling.

What happens next before the October 2027 launch?

Exchange for Change will now work with the Welsh Government and other organisations to establish the network of return points, collection and processing infrastructure, producer registration and other systems required before the October 2027 launch. Mr Gruffydd said the appointment followed a process to identify an organisation capable of establishing and operating the scheme alongside producers, retailers and councils.

He stated:

“By applying a deposit which is redeemed when drinks containers are returned, the scheme will tackle litter whilst supporting the collection of high-quality recycled materials.”

He added the DRS would “help provide a pathway towards the roll-out of reuseable drinks containers” in Wales.

The Welsh Government says the longer-term intention is to use the scheme to move beyond recycling and encourage greater use of reusable drinks containers. Mr Gruffydd added:

“I look forward to working with Exchange for Change and our delivery partners as we work to establish a DRS that works for Wales, and with those schemes being implemented in the other nations of the UK.”

Background of the Deposit Return Scheme Development

The Deposit Return Scheme represents one of the most significant changes to UK recycling policy in decades, with the UK-wide launch scheduled for 1 October 2027. The central operator for England, Scotland and Northern Ireland, Exchange for Change, was appointed in May 2025 and formally unveiled its branding in January 2026.

Wales’ path to appointing its DMO proved more complex. The Welsh Government initially rejected Exchange for Change’s application to become its deposit return scheme administrator in April 2026 and reopened applications for the role, setting a new deadline of 2 June 2026. This decision came amid concerns about whether a single operator could effectively manage different schemes with different material scopes across the UK.

The regulations already adopted include the Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2025, the Deposit and Return Scheme for Scotland Amendment Regulations 2025, the Deposit and Return Scheme for Scotland (Designation of Scheme Administrator) Order 2025, and the Deposit Scheme for Drinks Containers (Wales) Regulations 2026. Under the Welsh regulations, glass containers will technically form part of the scheme from launch but will operate differently from plastic and metal containers during the four-year transitional period.

From October 2031 onwards, a full deposit and refund system for glass is expected to be introduced in Wales, subject to final scheme implementation. During the transitional period, consumers will not pay a deposit on glass drinks containers nor receive a refund on return.

Prediction: How This Development Affects Welsh Consumers and Businesses

The appointment of Exchange for Change and confirmation of Wales’ DRS structure will have significant implications for Welsh consumers, retailers, and drinks producers over the coming years. For consumers, the inclusion of glass from day one with a zero pence deposit during the transition period means they will not face immediate additional costs on glass bottles, but will need to adapt to new return infrastructure and labelling systems for plastic and metal containers from October 2027.

For Welsh drinks producers, particularly smaller breweries and bottlers, the operational complexity of complying with a scheme that differs from the rest of the UK could increase administrative burdens and distribution costs. Industry warnings about potential product shortages and reduced choice in Wales reflect genuine concerns about whether some producers may choose not to supply certain glass products to the Welsh market rather than navigate separate labelling and compliance requirements.

Retailers in Wales will face the challenge of installing and maintaining return points, including reverse vending machines, with the number of these expected to increase gradually over time rather than being available at scale from day one. This phased approach may create initial confusion among consumers about where and how to return containers, potentially affecting participation rates in the early stages of the scheme.

The four-year transition period for glass provides a pragmatic compromise that allows infrastructure and systems to develop while maintaining Wales’ commitment to including all drink container materials. However, the success of the scheme will ultimately depend on whether the Welsh Government and Exchange for Change can deliver the return point network, collection infrastructure, and producer registration systems on time, and whether industry concerns about feasibility can be addressed through the promised exclusions and flexibilities for smaller operators.