New challenges are emerging in wholesale as the industry becomes more sustainable. Are you prepared?
For decades, Rowan has worked in the excess stock market, driven by one simple objective: keeping perfectly good products in circulation. Whether it's from overproduction, discontinued lines or surplus product, we've played a vital role in helping manufacturers recover value and protect their brand while also reducing landfill.
Now, however, across the UK and Europe, packaging regulations are becoming more stringent, with businesses facing greater responsibility for the environmental impact of the packaging they place on the market.
Are you on top of the two new regulations and how it might affect your company? Here's the lowdown on all you need to know:
The PPWR
The EU's Packaging and Packaging Waste Regulation (PPWR) is designed to cut packaging waste and drive greater sustainability across the industry. It comes into force from 12 August 2026, so if your company deals with consumer goods (including food, drinks, cosmetics and household goods) you'll need to have a clear strategy in place.
The regulation introduces new rules around packaging design, recycling, labelling and reuse which requires manufacturers to make significant changes. As a business committed to sustainability, Rowan welcomes the regulation and the positive changes it can make to the industry while acknowledging the challenges it will bring.
Here's what you need to know... If goods were already placed on the market before 12 August 2026, they can most likely continue to be sold until stock runs out.
This means that some manufacturers could be facing the prospect of perfectly good products going to landfill if they can't move existing stock quickly enough.
The Deposit Return Scheme
The industry also needs to plan ahead for the introduction of the Deposit Return Scheme, which is set to be introduced in October 2027 in England, Scotland and Northern Ireland. Under the scheme, consumers will pay a small refundable deposit (most likely to be 20p) when buying eligible single-use plastic bottles and metal drinks cans. The deposit is returned to the customer when the empty container is taken back to a collection point in-store or a vending machine. This scheme is designed to reduce litter and increase recycling rates as well as improve the quality of recycled materials.
For many in the wholesale industry, adding a deposit to the price of drinks is only the start of the work that needs to be done. They will also need to update their accounting, invoicing and IT systems to manage deposits separately from product costs, while also dealing with increased admin and stock management. During the transition, businesses will have to manage both DRS and non-DRS products which will require significant investment as well as operational planning.
Many wholesalers see the scheme as one of the most significant changes the sector has faced in years due to the costs and complex changes involved. The scheme may lead to excess stock when businesses over-order or have inventory to use up before the system changes.
Think this may apply to you? You'll need to speak to us as soon as possible...
How Rowan can help
Want to know exactly what Rowan can do for you? Recently, a leading food and drink manufacturer found themselves needing to change their packaging to meet the new PPWR regulations – this left only a few months to move its existing stock before the new rules came into effect.
When they approached Rowan, we were able to react immediately. Using our warehouses in Essex and the Netherlands, we doubled the number of inbound delivery slots available, working over the weekend and extending shifts to facilitate moving the equivalent of a year's worth of stock in just eight weeks. We were able to store thousands of additional pallets, giving the manufacturer the time and capacity needed to get the product onto the market before the deadline thus ensuring their products reached customers instead of becoming unnecessary waste.
Sarah Guest, Managing Director of Rowan International, says: "If I could offer one piece of advice to suppliers, it would be to speak to Rowan NOW. Give us a call and we'll talk through the options available to you. We're known for adapting quickly, thinking creatively and finding routes to market for affected stock. The sooner we're involved, the more opportunities we have to help you achieve the best possible outcome."
Find out more about the regulations here...
https://www.fdf.org.uk/fdf/business-guidance-hubs/packaging/ppwr-business-guidance-page/
