Manufacturers are facing skyrocketing costs due to the packaging waste recycling note (PRN) associated with glass. Over the past four years, the price of PRNs has surged from £15 to £150 per tonne, a tenfold increase. This surge has been attributed to rising fuel costs, as more fuel is needed for glass collection and furnaces. However, the specific factors behind the significant rise in PRN prices remain unclear due to the lack of transparency in the system.
The impact of these rising costs can even be seen in the wine industry, where wine makers are diluting their vintages to offset higher tax bills. Paul Schaafsma of Benchmark Drinks has been exploring methods to lower the alcohol content of their wines and avoid passing on the price hike to consumers. To achieve this, they have been harvesting grapes earlier in advance of the 2023 vintage in the southern hemisphere.
Notably, the wine trade has been particularly hard-hit by the surging PRN costs, as most supermarket-grade wines are packaged in the UK. Furthermore, supply chain costs have also experienced a significant increase. Energy costs have made glass and labels more expensive, while longer lead times are observed for screw caps produced in Ukraine.
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