Coca-Cola Amatil reassures investors as NSW container deposit scheme approved

by Marie Sansom

One of Australia’s largest and most powerful drinks companies has moved to reassure its investors that NSW’s new 10 cent refund container deposit scheme (CDS) will not immediately hit its bottom line but cautioned it was still too early to gauge the future financial impact.

The new CDS is slated to start from July next year. It will apply to most drink containers between 150ml and three litres and containers can be dropped off at large depots, pop-up sites or reverse vending machines.

The drinks industry has been in high dudgeon over the plans, primarily because beverage suppliers will be forced to fund the 10 cent refund, along with the associated handling and administration fees. The scheme is likely to translate into higher drinks prices and could lower company profits.

Coca-Cola Amatil’s (CCA) announcement to the Australian Securities Exchange today (Monday) said: “Given the scheme will not be implemented for some time, there is no immediate impact for the company. CCA is working through the potential implications and once further details are known, will update the market as appropriate.