From Friday May 9, South African consumers will have to pay for the plastic bags they previously received free of charge from retailers, as government legislature aiming to encourage re-use of bags and recycling by consumers comes into place. An environmental levy included in the price of the bags will also go towards government-administered environmental projects and education.
South Africans will be now able to choose between two standard sizes of the new 30-micron thick bags made from High Density Polyethylene (HDPE): either 31 cents for a 12-litre bag or 46 cents for a 24-litre bag (both including VAT). The prices will be fixed, and thus the same across all retailers and their outlets, and the size and price of the bags will also be indicated on shoppers’ till slips.
SA Consumer Goods Council CEO August Iwanski said the council actively supported recycling, and had worked closely with the government and major retailers to ensure a compromise between both sides that had the least impact on consumers. Retailers had been concerned about the cost to consumers, while government was interested in promoting a certain minimum thickness.
”While compromise was reached, there was resistance from the retail industry who felt that forcing consumers to pay for plastic bags represented an additional cost,” he explained.
”This, we feel, comes on the back of rising food prices. Had a compromise not been reached, consumers would have been paying even more.”
Meanwhile, retailers across the country will boost their earnings as a result of the change in legislation, but several have said they would invest the amount received from plastic bag sales (or alternatively the amount they previously spent on supplying the bags) back into pricing discounts for consumers.
According to Woolworths Holdings (WHL) CEO Simon Susman, the group was still assessing the exact amount of savings involved for the company, but had already committed to investing it directly into the price of the group’s merchandise.
”Woolworths has a long tradition of supporting moves towards better environmental management, ensuring that our children inherit a cleaner and healthier environment,” said Susman.
”While customers will now, by law, have to pay for their shopping bags, they will be able to enjoy a reduction in the price of certain basic foodstuffs and textiles.”
”We are constantly re-evaluating our packaging needs and solutions to ensure that we use as little packaging, as effectively as possible thus reducing the threat to the environment,” said Susman.
At the same time, Pick ‘n Pay (PIK) has also pledged that all savings would be ploughed back into cost-saving initiatives, for its customers.
”All of our previous spending on plastic bags will be used to reduce the price of basic foodstuffs, although we aren’t releasing our estimates of the amount involved,” director Graeme Laithwaite confirmed.
The listed food and general merchandise retailer introduced its own reusable ”Green Bag” as an alternative to cut the overall cost for consumers on Saturday, and the entire initial order of 300 000 bags has already been completely sold out in 2,5 days. The washable 18-litre bag, made of non-woven polypropylene and able to stand on its own, retails at R5.
Fellow food retailer Shoprite (SHP) has said it will also offer other packaging choices: an environmental bag made from plastic that is thicker than those dictated by the government, selling for R1,50, and a canvas bag that will retail for less than R7.
Shoprite’s general manager for marketing, Brian Weyers, said it was difficult to determine how much the group would generate from its bag sales, but confirmed that the funds would be used to bring down the price of basic foodstuffs.
Currently Shoprite distributes approximately 66,5-million plastic bags of various sizes per month. Its leftover bags would be exported to its other African stores outside of South Africa, Weyers said.
Finally, New Clicks Holdings (NCL), the listed parent of popular health and beauty retail chain Clicks and other well-known brands Discom, CD Warehouse, Musica and The Body Shop, will also be offering its customers two of the new-sized bags agreed to by the retail industry, as well as one larger bag. All stocks of the old plastic bags will be recycled.
Clicks is currently considering ”creative ways” of passing on the savings that were previously spent on its plastic bags to its customers, it added. Its new plastic bags will continue to be branded, and Clicks has placed a greater emphasis on their aesthetic appeal than previously. – I-Net Bridge