The threat to our Environment is real and positive action is needed. Whether we like it or not, the Vending Industry must respond to play our part in the global challenge, to respond to consumer pressure and to counter the threat of increased Government interference that will add to our costs for no real benefit. The AVA will become increasingly active in this area to represent Members interests and provide advice.

Some positive steps have already been taken and I want to remind members of one of the real Vending Industry success stories... Save a Cup.

THE NEED FOR SAVE A CUP

Save a Cup was ahead of its time. Through the 1990s consumer demand for increased recycling was limited and politicians were not really interested. Save a Cup struggled to establish an efficient business model and by 2003 questions were being asked about the longer term viability of the operation.

Since 2003 we have seen a major transformation. The size of the environmental problem has become much more transparent and consumer concerns have multiplied. The Environment is now top of the political agenda and increased legislation will follow.

In parallel with these major shifts in opinion, the Save a Cup Management Team and Staff have done a superb job of remodelling the Save a Cup operation.

In 2003 the ‘environmental levy' of 18p per thousand cups was the major source of funding. Leading players in the Vending Industry challenged Save a Cup to replace levy funding as soon as possible and since that time they have managed a major restructuring of the finances to progressively transfer the costs to the end user and away from up front levies.

Great progress is being made and November 2007 saw the best ever financial results for the business. In addition, between 2004 and the financial year ending March 2008, the percentage of Save a Cup income from sources other than the levies has increased from 39% to  66% and the plan for 2009 is at least 84%. The target is to get to 100% non levy funding in 2009.

THE FUTURE

The pressure from consumers and customers to prove our environmental credentials will increase on all of us. Save a Cup is an important part of the Vending Industry's response. In addition to continuing to increase the percentage of recycled polystyrene cups, Save a Cup is now starting to offer services for polypropylene and paper cups, filter packs/pods and cans.

STOP PRESS...

As a warning to all of us, the Netherlands government has announced a tax on all plastic cups from January 2008. This tax is expected to be SIX TIMES the current levy paid on UK cups.

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