Why Victorians may soon pay more for a slab of beer

Victorians may be slugged more for drink packs and slabs of beer, beverage companies have warned, as the operating costs of the state’s cash-for-container scheme gets set to rise by 30 per cent.

Beverage companies are warning slabs of beer and drink packs could rise by up to $2, and smaller breweries would have to close their doors with the operating cost of Victoria’s cash-for-container scheme set to be hiked by 30 per cent.

From February, the cost of the state’s Container Deposit Scheme (CDS) will be increased by 3.53 cents per container.

Companies have revealed that the hike would have to be passed on, as well as other costs associated with the increase, and that “consumers will notice the rise as it’s a considerable and unexpected impost”.

VicReturn, the independent operator of the Victorian scheme, justified the price hike revealing that the CDS was deliberately underpriced when launched by the state government in 2023 to get people to support the program.

Beverage companies are warning slabs of beer and drink packs could rise by up to $2.

“The initial scheme price was set lower to provide certainty to the industry while container return volumes built over the first year of the program,” a spokesperson said.

“The Victorian scheme has grown faster than any other state at the same point in time and has exceeded the original pricing forecast.

“The cost of running return points and recycling containers is factored into the scheme price. As the number of containers sent for recycling continues to grow, there will be an additional cost of 3.53 cents per container supplied into Victoria from 1 February 2025.”

It may also not be the last cost increase Victorians will see with the agency stating that “scheme pricing reviews are a normal occurrence and scheme pricing is reviewed on a 6- or 12-month cadence”.

Since finding out about the rise last month small operators have been lobbying VicReturn against the move warning “this is a serious cost on small businesses in already challenging times”.

Some have told the Herald Sun that the scheme has already added $60,000 to $100,000 to their production costs and that the latest rise would likely see operators selling up or closing their doors.

The news comes after VicReturn recently ruled out increasing the 10 cent refund to 20 cents.

The beverage industry supported not changing the refund as they said consumers would not be able to pay more at the checkout to fund it.

The cost of the state’s Container Deposit Scheme (CDS) will be increased by 3.53 cents per container. Picture: Karina Grift

“Increasing the deposit amount will have an impact on consumers’ pockets, particularly during a cost-of-living crisis,” said Cathy Cook from the Australian Beverages Council.

“An upfront 20 cents with each bottle or can — or $2 on a 10-pack — is doubling the consumers’ deposit.”

She said the increase in operating costs for the CDS would also have an impact.

The government this week celebrated the milestone of 1 billion cans returned.

A government spokesperson said: “Victorians have gone gangbusters for our container deposit scheme, we’ve just hit a billion returns which means $100m back into Victorians’ pockets - this pricing review will ensure the CDS can keep up with the growing demand to recycle drink containers.”

However, opposition environment minister James Newbury said the government was not being transparent about the huge hit to the public’s pocket.

“As a one year anniversary present of the container deposit scheme being in place, every Victorian is being slapped with a price increase.

“We know for certain that when costs go up for business, those costs get passed onto customers, who will be forced to pay more.”