CDS Vic - beverage price monitoring report
A report into the impact of Victoria’s Container Deposit Scheme (CDS Vic) on beverage consumption and prices has found prices of eligible alcoholic drinks in Victoria increased by an average of 3.6 cents and eligible non-alcoholic drinks by an average of 9.1 cents, which is less than the 10-cent refund.
This increase is consistent with first year results for New South Wales and Queensland schemes.
Understanding the impact CDS Vic
CDS Vic is now in its second year of operation, collecting an impressive 1.65 billion containers at more than 640 refund collection points across Victoria, since its launch in November 2023.
Victorians continue to enthusiastically embrace CDS Vic and are contributing to Victoria’s circular economy by returning beverage containers and collecting their 10-cent refund.
The Impact of Victoria’s Container Deposit Scheme on beverage prices and consumption report assessed the effect of the scheme on beverage prices and sales.
The report looked at beverage consumption and prices before and after scheme commencement, to understand the impact CDS Vic has had in Victoria. Beverage price monitoring helps us understand to what extent beverage suppliers have passed the cost of the scheme on to consumers through increased retail prices.
Product stewardship
CDS Vic is a product stewardship scheme, which means beverage companies take ownership of the product through to waste recovery, including through the payment for a 10-cent refund for each container and the operating costs of the scheme, through a scheme contribution fee. Costs for collecting and recycling drink containers through CDS Vic are funded by the beverage industry through scheme contributions.
The Scheme Co-ordinator, VicReturn, determines the scheme contribution fee and sets the scheme pricing, which is paid by beverage companies. This contribution fee is based on the number of containers supplied into Victoria by a beverage manufacturer and their material type.
Monitoring price impact
Beverage pricing is a matter for the beverage industry. Recycling Victorit has leadership responsibility for the scheme oversight, regulation and administration.
Recycling Victoria will continue monitoring beverage prices into 2025 following the container price increase on 1 February 2025 (the average container price increased from 11.18 cents to 14.7 cents, both excluding GST.)
CDS Vic is an important part of building Victoria’s circular economy and means beverage suppliers are playing their part in helping to improve recycling rates and material recovery, as well as reducing the number of containers that end up as litter or in landfill.
