DES MOINES, Iowa – The Iowa Grocery Industry Association (IGIA) today expressed its concerns about Governor Chet Culver’s proposed expansion to Iowa’s Bottle Bill. Addressing the proposal outlined by the Governor in his State of the State Address, IGIA President Jerry Fleagle commented, “I can’t imagine that Iowa consumers are going to stand quietly by and allow themselves to be taxed every time they take a sip of pop, beer, water or their favorite sports drink.”

Culver’s proposal calls for an increase in the per container deposit from five cents to a dime at the time of purchase. However, once consumers return their containers, the Governor proposes that they receive only eight cents per container back. Under his proposal, one unreturned cent will help cover the cost of handling the returns and the state will keep the other.  

Deposit Requires Full Return

“A deposit is only a deposit when it can be fully recovered by the depositor,” said Fleagle. “We’re grocers, not tax collectors, and we don’t want our store clerks to be on the frontlines of explaining to people what the Governor’s newly created definition of the word ‘deposit’ is.”

Fleagle also expressed concern for the Governor’s proposal from both an upfront cost and bottle return perspective, especially over Culver’s desire to expand the types of containers included in the deposit law.

“This proposal will suck tens of millions of dollars out of Iowans’ pockets at the time of their beverage purchases,” said Fleagle. “Expanding the types of containers that carry deposits simply sets up a scenario where people have to spend more money up front and are then forced to drag even more dirty containers back to the stores. It expands the financial burden on consumers and increases the potential health hazard in stores.”

Original Intent of Bottle Bill Lost

Fleagle pointed out that when the bottle deposit concept was initially introduced, it was an effort to decrease litter.

“The bottle bill was never intended to be a revenue source for the state,” said Fleagle. “At the time, people were concerned about cans and bottles filling Iowa’s ditches. But times have changed. We’re the ‘Big Gulp’ generation. Research shows that only four percent of beverages in aluminum containers are consumed in cars while 88 percent are consumed at home or in the office. Glass bottle rates are even more telling – 91 percent are consumed at home or on the premises of a restaurant or bar. Knowing that, doesn’t it make more sense to expand curbside recycling options? That allows people to recycle their containers in the places they consume them.”

Fleagle stressed that the grocery industry’s primary interest is providing clean stores where people can purchase safe food.

“Let me be clear – grocers don’t want to collect anyone’s deposit nickel, and Governor Culver’s proposed increase to the container deposit to a dime and expand the types of containers included doesn’t change that fact. Bottle deposits, claimed or unclaimed, have never been and will never be a revenue source for the grocery industry. We would much rather have everyone keep their money and recycle their containers at the curb,” concluded Fleagle.

# # #

About the Iowa Grocery Industry Association