The expanded bottle bill would have required a nickel deposit on other beverages including bottled water, beer and would require beverage companies to forfeit 80% of unclaimed deposits according to the statement issued by NY Attorney General Andrew Coumo.
The bill was supposed to take effect on June 1, but was pushed back to April 2010 by U.S. District Judge Thomas Griesa.
However, Judge Batts ruled on Thursday August 13th that most provisions could take effect immediately which means that soda and beer companies will have to begin returning the bulk of unclaimed deposits to NY State. How much money are we talking about? According to Cuomo, the sum will be over $100 million in new revenue for the cash-strapped state.
Water companies, will have until October 22 to comply. Consumption of bottled water has risen to roughly 3.2 billion bottles according to Laura Haight, senior environmental associate for the New York Public Interest Research Group, the organization that has been fighting for this law.
The bigger issue and major sticking point for the law has been the labeling rule that would require NYS specific UPC codes for bottles sold locally in NY. Having to do so would effectively require distributors to have multiple inventories of beverages, those sold in NY and those sold in the other 49 states. The packaging and warehousing nightmare to comply with this law is staggering (to me) and when you add that many of the beverages sold in eastern NY Come from distribution centers in CT or even western Mass, the complication is enormous.
Each beverage would have to have a New York variety. So this would effectively double the packaging used for each flavor; labels, 4 or 6 packs, cans, 12 packs, variety packs, cases, etc. This includes costs to design, prepare, produce and ship packaging. Not only that, if you had a production run you would have to predict case sales by market and break down the line twice to change the packaging. (NY - Non-NY) then warehouse it.
I suggest a simpler solution where the UPC remains the same and the deposit language changes on the affected packaging. I would also suggest that first year, NY forgives the packaging changeover by letting beverage companies keep a percentage of the collected deposit money to recover costs. What do you think?