Paper bottles close price gap with glass as EPR Levy Reshapes Packaging Costs

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Paper bottles close price gap with glass as EPR Levy Reshapes Packaging Costs

Frugalpac, the award-winning British sustainable packaging innovator welcomes the UK Government’s Extended Producer Responsibility (EPR) scheme as a major opportunity to level the playing field between environmentally friendly packaging and traditional glass.

Under the new levy, glass packaging faces some of the steepest penalties – pushing up costs for wine and spirits brands and accelerating the commercial momentum behind the paper Frugal Bottle.

The EPR levy, which came into force in April, charges packaging producers based on weight, recyclability, and disposal costs.

The new rates to be charged to producers by PackUK, who operate the scheme, will see glass cost £192 per tonne.

This means that the Frugal Bottle will have a levy 78% less than an average glass bottle (440g) and this difference increases the heavier the glass bottle.

This narrows the cost gap between paper and glass- while offering six times lower carbon emissions than glass and five times less weight.

Frugalpac CEO Malcolm Waugh backed the EPR, saying:

“Extended Producer Responsibility is the right step at the right time. It puts the true environmental cost of packaging back where it belongs – on the producers. That’s the only way we can start making real progress towards a circular economy.

“Glass might be recyclable, but it’s energy-hungry and expensive to process. It’s heavy to transport and creates significant emissions across its lifecycle. If we’re serious about cutting carbon, then glass has to carry its weight – literally and financially.

“Our paper Frugal Bottles are five times lighter than glass and have a carbon footprint 84% lower. We’re already saving huge carbon costs and we’re closing the gap on price costs too.

“I don’t think there’s a reason not to think you couldn’t see 20–25% of the market in some form of paper alternative, ideally in the Frugal Bottle, in the next decade.

“And with rising costs on glass, our price advantage is only strengthening. If brands invest in our paper bottle machines so they can produce the bottles themselves, we could achieve cost parity within a year.”

Frugalpac’s momentum continues to grow, The Frugal Bottle is:

  • Used by more than 50 producers in 128 wines and spirits in 25 countries
  • Launched in Aldi, Sainsbury’s, Morrisons, with international rollouts, including in the US, Whole Foods, Target, and 7-Eleven.

To scale efficiently, Frugalpac builds and exports its Frugal Bottle Assembly Machines. Two are already in operation in Canada and California, with a third machine heading to Australia.

Each unit produces 2.5 million bottles per year, with a new version in development to quadruple that capacity.

The company’s ‘Fill Good Collective’ network of 15 paper bottle fillers in 12 countries ensures global access to low-carbon packaging solutions.

Based in Ipswich, Frugalpac won the King’s Award for Enterprise in Innovation in 2024. Exporting now accounts for 80% of its revenue, supporting rapid growth and global recognition. As the EPR levy reshapes packaging economics and sustainability expectations rise, Frugalpac stands at the forefront of change.

Malcolm Waugh added: “With glass costs rising and carbon targets tightening, our Frugal Bottle isn’t just a greener choice—it’s becoming the smarter one financially too.”

Fundraising to Scale Up

Frugalpac is currently in the early stages of a £5 million fundraising campaign to expand production capacity and bring new sustainable products to market, including the Frugal Paint Pot, which is under development making paint pots easier to recycle.

Of this, £1 million has already been raised from existing investors.

People can invest at our Crowdcube page at https://www.crowdcube.com/companies/frugalpac/pitches/b0RdNl

Frugalpac is EIS eligible, meaning all eligible investors in our campaign can benefit from the tax reliefs provided under the Enterprise Investment Scheme (EIS).

This means investors:

  • Claim up to 30% back on their investment as tax relief.
  • Won’t pay Capital Gains Tax on any profit when they sell their shares.
  • Set any losses against Income Tax for that year or the previous year.
  • Defer Capital Gains Tax they reinvest any gain in EIS-qualifying shares.

People can invest at https://www.crowdcube.com/companies/frugalpac/pitches/b0RdNl

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more by clicking here.

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