Under an October 23 order issued by U.S. District Judge Deborah Batts, the court injunction on bottled water deposits in New York State is being lifted effective at 12:01 a.m. this Saturday, October 31, 2009.
However, the State has granted retailers up to an extra week to sell through remaining non-deposit water inventory, reprogram equipment to collect and redeem deposits, and come into compliance. By 12:01 Sunday, November 8, all water offered for sale in New York will need to be Bottle Bill compliant.
Under this arrangement, retailers may choose to start collecting deposits on properly labeled product on October 31, or on November 8, or at some point in between those dates – as long as they are fully compliant with the deposit and redemption requirements come November 8.
NYACS recommends picking a date within that period that is workable from an operational and inventory standpoint, and on that day, remove all remaining non-deposit product and start to collect and redeem deposits.
Retailers should prepare to reprogram their front-end system to begin applying a nickel deposit to deposit-labeled containers of less than 1 gallon or 3.78 liters of water, flavored water, and nutritionally enhanced water that contain zero grams sugar. A partial list of deposit vs. non-deposit product is posted at www.nyacs.org. Consult your supplier on questions about specific SKUs.
Stores will need to start redeeming the deposit on empty containers of those products that bear the "NY 5¢" label no later than November 8. If you have reverse vending machines, you also will need to get them reprogrammed to accept water bottles.
Retailers should take immediate steps to work down inventory of non-deposit water product. They are advised not to accept any more deliveries of non-deposit water product that is subject to deposit.
In her October 23 order, Judge Batts permanently killed the clumsy requirement that all deposit containers sold in New York be labeled with a New York-only UPC code.
Suppliers and retailers should stay in close communication with one another to ensure as orderly a transition as possible. Retailers are advised not to accept delivery of any more non-deposit water product.
Prices of soft drinks and beer have already spiked in New York due to the dramatic increases in costs incurred by bottlers and distributors of those products, and the same will likely occur with water.
Under other provisions of New York’s bottle bill expansion already in effect:
• The State will capture 80% of the unredeemed deposit revenue from soda bottlers and beer distributors, and, starting October 31, water bottlers.
• The handling fee paid by bottlers and distributors to retailers on returned containers increased from 2¢ per container to 3½¢.
• Retailers are required to display the “Bottle Bill of Rights” and a sign warning against redemption of out-of-state containers (see link to samples below).
• Local governments, the state Department of Agriculture & Markets, and state Attorney General’s Office all can now enforce bottle bill provisions, along with the state DEC.
Stay tuned to www.nyacs.org for further updates.
NYACS Water Deposit Q & A for Retailers - 11/05/09
Text of Judge Batts' October 23 Order
Tax Department Instructions on Beverage Container Registration and Filing
Updated Partial List of Water Products that Would be Subject to NY Deposit
Text of Judge Batts' August 13 Decision
Judge Batts' September 14 Ruling: Handling Fee Hike, Escheats Provision NOT Retroactive