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Since January 1, 2003, German distributors and retailers have struggled to develop a system to comply with a new law that requires a 25 cent to 50 cent deposit on beer, soft drink and non-carbonated beverages sold in disposable cans and bottles. The deposit on one-way beverage containers went into effect after the market share for refillables fell below 72%, a national goal since 1991. The beverage industry had ample time to prepare for the deposit law, according to supporters, but chose to fight the law in the courts rather than making the required capital investments in a return system. As a result, when Jan. 1 arrived, there was no national return system in place for the disposable containers, as there is for refillable packaging. Many German retailers have simply refused to sell drinks in one-way packaging, finding it easier to sell only refillables than to comply with a new law with a poorly-established return system. Juergen Tritten, Minister of Environment, granted some temporary leeway to the beverage industry by allowing retailers to initiate the deposit, and to issue refunds only if the consumer purchased the containers from that retailer. Some retailers are requiring proof of purchase, by using special stick-on labels or by deposit tokens in one form or another. The beverage industry and the retail trade have until October 1, 2003 to establish the nationwide return system. That is the deadline for full compliance with the law. Lekkerland, the largest distributor to convenience stores in Germany, and Spar have announced they will be ready with a manual redemption system. Because the law requires only that retailers accept empty containers of the same material, volume and form as the containers they sell, uniquely shaped one-way bottles are expected to be introduced on the market. This move is expected to hurt producers of cans who have already been hit hard by the deposit system on one-way packaging.
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