Redesign. Reprice. Reposition

Future- proofing profitability

DRS fundamentally reshapes price mechanics, packaging economics, and retailer agreements. Pricing strategies must account for deposit-inclusive consumer pricing, leveraging robust price-elasticity models backed by industry benchmarks, helping brands predict shifts in category share, customer ordering patterns and consumer behaviours. In the UK c. 20% consumers believe DRS will be a hassle and increase prices at the point of purchase^[2].

Moreover, pack architecture requires urgent reassessment - Germany saw a 98% return rate leading to rapid pack redesigns to fit standard return vending machines (RVM), highlighting the necessity for proactive portfolio adjustments^[3]. A poll of UK consumers found a 20p flat deposit fee would encourage over 60% of individuals to switch to large PET bottles^[4], as consumers sought to balance trips for returns and increase price at point of purchase. CPG leaders must rationalize their SKU portfolios, resize packs strategically, and align product innovations to maintain profitability post-implementation.

How early DRS strategy will define CPG market winners

The complexity and magnitude of changes required under DRS cannot be overstated. A typical CPG company will need to undertake initiatives to address up to 15 distinct operational business areas across sales, marketing, finance, supply chain, logistics, and IT. Certain operational transformations, for example new product formulations or new packaging materials, may require as much as an 18-22 month planning and execution lead time, depending on the strategic choices made. Consequently, key decisions must be considered and finalized by the end of 2025 at the latest to avoid costly complications.

Real-life case studies illustrate the importance of early action: In Germany, delayed decisions on pack redesign and infrastructure led to significant operational bottlenecks, eroding margins for late adopters. Conversely, brands in Norway and Ireland that began planning early optimized their supply chains, leveraged consumer engagement opportunities, and achieved smoother implementations with enhanced market positioning.

It’s imperative to act decisively now— evaluating vulnerabilities within trade agreements, preparing negotiation strategies for shared-cost models, and proactively engaging retailers in joint readiness planning for 2027