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Starbucks to charge 5p ‘Latte Levy’ across all stores in Britain
2018-07-16

From: Packaging News


Starbucks is to test a 5p paper cup charge across all 950 stores in Britain, following a similar trial in London.


It will be the first tax – or ‘Latte Levy’ – introduced nationwide and will act as a barometer for the coffee shop sector – a successful trial could lead to calls for more, if not all coffee chains to charge a tax to, presumably, aid recycling efforts and infrastructure.


The announcement comes after positive trial results showed a 126% uplift in the use of reusable cups in participating stores, measured by the number of customers redeeming the reusable 25p cup discount.


The charge, to begin at the end of this month, will see all UK stores add 5p on to the cost of any drink purchased in a paper cup in a bid to further encourage customers to bring in a reusable cup.


Throughout the three-month trial Starbucks worked with environmental charity Hubbub, who compiled a report evaluating the overall impact of the charge on customer behaviour.


The funds raised from the charge to all stores will continue to support recycling and sustainability efforts with Hubbub, with a focus to reduce plastic pollution across the UK.


Hubbub analysis indicated that a nationwide roll out of a 5p charge with supporting instore communications and staff training would have an impact on reducing paper cup use.


Martin Brok, president, Starbucks Europe, Middle East and Africa said: “We saw encouraging results from the first three months of this trial with Hubbub, and what stood out to us was the positive response we had from our partners (employees) and customers who continue to push us to innovate and find ways to reduce waste. Extending this to all our stores across Britain is an exciting step and we’re hoping this charge will remind customers to rethink their use of single-use plastic as it has with plastic bags.”


Trewin Restorick, chief executive of Hubbub, said: “Single-use plastics is an issue that has become more significant in people’s minds than ever before. The trial proved this, showing that customers have an increased awareness of the need to reduce waste from single-use cups. A 5p charge is an effective way to prompt this change. We’re excited to be working with Starbucks, particularly as they take on board the findings of the trial and introduce the charge across the whole of the UK. We look forward to discovering what more can be done to encourage people to use reusable cups.”

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