How the New EPR Packaging Tax Could Cripple Small Food Businesses… And What We Can Do About It

In direct response to The Times, April 21st article by Hannah Prevett
By Glassworks International | April 2025

The UK food and drink industry is staring down a new challenge – one that’s quietly arrived but could have loud consequences for thousands of small and mid-sized businesses.

It’s called Extended Producer Responsibility (EPR). And for companies that package products, particularly in glass, it could mean tens or even hundreds of thousands of pounds in unexpected costs.

At Glassworks International, we supply millions of glass bottles and jars each year to brands across the UK and beyond. Our customers range from artisan food companies to high-volume drinks manufacturers. Right now, we’re hearing real concern from business owners – echoed in The Times this week – who are only just learning about EPR and what it will cost them.

What Is EPR and Who Has to Pay?

Extended Producer Responsibility is a government initiative designed to make businesses financially responsible for collecting and recycling the packaging they place on the market.

It sounds fair in principle; more recycling, less landfill. But the reality for thousands of UK businesses it is confusing, expensive and deeply worrying.

Here’s what we now understand:

• EPR applies to UK brand owners, importers and retailers who handle more than 25 tonnes of packaging and have a turnover above £1 million.

• Companies must report how much packaging they placed on the market, broken down by material (glass, plastic, paper, etc.).

• Fees are being applied retrospectively. The first charges- due this October 2025, are based on packaging sold in 2024.

This isn’t just policy. It’s already becoming a crisis.

The Food and Drink Federation estimates EPR compliance will cost businesses a staggering £1.4 billion in its first year.

Why This Is a Huge Problem for Small and Growing Brands

For many importers and producers, this news came too late.

There was no clear communication. No timely guidance. And no ability to plan.

In The Times article, Nadine Maggi, MD of Sweet Freedom, a natural syrup and spread brand, describes EPR as “the straw that broke the camel’s back.” Already facing inflation, wage rises and soaring ingredient costs, she now faces an unexpected £50,000 bill and says the tax will push her company into loss.

Katie Jewitt, COO of kombucha brand Momo, calls it “catastrophic” for small companies. Like many, she didn’t realise her business was liable until too late and now faces a six-figure charge that will delay breaking even by at least a year. “How do they expect SMEs to just magic this money out of thin air?” she asks.

The founder of Manilife, Stu Macdonald, is spearheading a campaign to challenge the tax’s rollout. He says the policy is “shambolic,” warning that it may be “existential for lots of businesses.”

And Liam White, co-founder of Dr Will’s condiments, sums it up starkly: “This adds to the cocktail of things that keep you awake as a small business owner.”

Our Position: This Needs Rethinking

At Glassworks International, we’re not against sustainability. We support reducing waste and increasing recycling.

But the way this has been implemented is simply wrong.

We don’t consider it lawful to make retrospective, arbitrary tax demands when specific tariff charges had not been decided – nor notified in advance. It’s asking businesses to guess. A guess which, if wrong, could weaken competitiveness in an already difficult trading period and potentially create distrust from our loyal customers.

And let’s be clear:

THIS IS A HIDDEN TARIFF ON CONSUMERS.

The Government balks at Trump’s recent tariffs, but at least he announced them loud and proud.

This has been quietly pushed through, under the radar, in the middle of a cost-of-living crisis.

The last thing consumers, businesses and the economy need right now is more tax.

We believe:

• Backdating EPR fees without notice is unjust and unfair

• Businesses should be given time to understand and incorporate new costs

• The system must reflect the challenges smaller producers and importers face; especially those committed to more sustainable (and heavier) materials like glass

As Jewitt from Momo rightly points out, glass is critical for consumer trust and product integrity, but under EPR, companies using plastic may be inadvertently rewarded due to lower weight-based charges.

What Can We Do?

Our message is simple: Speak up. Demand clarity. Defend our industry.

Here’s what we recommend:

1. Talk to your trade association – Groups like British Glass, the Food and Drink Federation and Packaging Federation are pushing hard for reform.

2. Contact your MP – Personal stories matter. Share how EPR will impact your business.

3. Make a plan – If you fall within scope, begin reviewing packaging data and future pricing strategy now.

4. Stay informed – We’ll be sharing updates on how EPR impacts the glass sector.

In Conclusion

The EPR scheme, in its current form, risks becoming a stealth tax on small businesses that care about quality, sustainability and local production.

It has been poorly communicated, unfairly backdated, and disproportionately punishes those using responsible materials like glass.

At Glassworks International, we will continue to:

• Advocate for fairer implementation

• Support our customers

• Amplify the voices of people like Maggi, Macdonald, Jewitt and White, who are fighting to protect what makes British food and drink special

This isn’t just about packaging.

It’s about protecting innovation, preserving jobs and ensuring the survival of thousands of purpose-driven British brands.

If you’re affected—or unsure where you stand—we’re here to help.

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