Co-op Wholesale has announced more than 1,500 wholesale price increases in line with new government packaging legislation, warning branded products from suppliers will follow suit in the coming weeks.

In a message sent to stores, seen by Better Retailing, the wholesaler said the price rises of 1p to 36p from 28 June were due to the government’s Extended Producer Responsibility (EPR) legislation introduced in April.

Under the regulation, suppliers are required to take more responsibility in the recycling of their packaging, adding more cost requirements to the producer.

However, the firm said the RRP of affected products will be increased to help retailers “protect margins.”

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Affected products in the 1,580 lines include:

The message sent to stores said: “We know the market is tough, and that any additional cost to goods is challenging for retailers.  As such, we at Co-op Wholesale have invested to cover the additional product cost for the first three months (April-June), to protect your profitability. 

“From 28 June, this levy will be included in the wholesale selling price of Co-op own brand products.”

“You will see similar pricing changes to branded goods coming through over the coming weeks as suppliers introduce the levy also.”

Several major suppliers had also previously warned Better Retailing of upcoming price increases due to EPR.

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