BOTTLERS BALK AT 'BETTER' BILL

While environmentalists have cheered the measure, local bottlers, distributors and retailers say the state's "bigger, better bottle bill" will be bad for business.

David S. Missert, owner of beverage distribution company A.J. Missert Inc., called the law "very costly and not thought out."

The bill was passed April 3 and signed into law as part of the new state budget. The law adds water bottles to beer, soda and wine cooler containers as items to be redeemed on a 5-cent deposit. It attempts to increase recycling, guard against fraudulent redemptions and add to state coffers.

But it includes provisions that will add costs for bottlers, distributors and consumers.

The key surprise requires a specific universal product code for New York for all beverages covered in the law. Bottlers are balking because they have until June 1 to create new labels and cans with the special UPC.

Joseph D. Colello, president of Frontenac Crystal Springs, Clayton, said that simply isn't enough time to create new labels and sell existing product.

He said the cost would end up being about 15 cents more per bottle or $3 to $5 per case. The provision requiring the specific New York bar code likely would end private bottling and limit the choices in bottle size for consumers.

"The consumer will suffer. They'll pay more and have less choices," Mr. Colello said.

Mr. Missert agreed. Some regional and national bottlers could decide not to sell their full line of drinks — in sizes or flavors. Others could pull out altogether.

Mr. Missert cited a letter from Pennsylvania brewer D.G. Yuengling & Son, in which owner Richard L. Yuengling Jr. told Gov. David A. Paterson the company would pull out of New York entirely because of the specific bar code provision.

Distributors say the nightmare doesn't end there. They will pay 1.5 cents more per container, now 3.5 cents, to retailers and redemption centers in a handling charge.

Staffers from A.J. Missert collect the cans and bottles from redemption centers and retailers. They crush the cans and pack the bottles, sorted by color, before trucking them to a recycling service in Rochester. Two Missert facilities, in Watertown and Ogdensburg, collect recyclables from redemption centers and retailers all across Jefferson, Lewis and St. Lawrence counties.

"Beverage wholesalers have completely funded this since the inception of the first bottle bill," Mr. Missert said. "We can't keep absorbing all the costs in New York state."

Distributors were required to set up separate interest-bearing accounts by Wednesday to collect deposit money, from which the state will take 80 percent of unclaimed deposits.

"In upstate, we're over-redeemed," Mr. Missert said. "I pick up more empties than I deliver beer."

Unclaimed deposits previously were kept by distributors to defray the cost of the program. The state expects $115 million for its general fund the first year.

Although not part of the bottle bill, the state budget also call for wholesalers, retailers and distributors to pay more in beer and wine excise taxes beginning May 1. The increase is 3 cents per gallon of beer — from 11 cents per gallon to 14 cents per gallon. For wine, the increase is about 11 cents per gallon, from about 19 cents to 30 cents.

Feeling the pressure, groups including the Northeast Bottled Water Association, New York State Beer Wholesalers Association and Food Industry Alliance of New York State are asking for the June 1 deadline to be delayed and for the state-specific bar code requirement to be eliminated.

Advocates say there is talk in the state Legislature about enacting such changes in a "cleanup" bill, but no official proposals have yet been made.

"The budget was done in secrecy and any necessary input was not asked for or given," said James T. Rogers, president of the Food Industry Alliance, which represents grocery stores and retailers across the state.

He said the expected addition of 3 billion water bottles to the 6 billion containers already collected could create huge problems for crowded stores.

Michael R. Norton, a Hannaford spokesman, said a mandate for reverse vending machines — units that accept bottles and issue receipts redeemable for cash — based on store size will stunt technological advancement.

"It eliminates potential innovation in the future by not investigating other solutions," he said.

Mona J. Golub, vice president of public relations and consumer services for Price Chopper, said the law makes everything from warehousing to collecting "laborious and impractical."

The chain covers five states and has its corporate brands in different volumes for several beverages, which now would need special UPCs.

"We open half a dozen to a dozen stores per year," she said. "But our increased warehouse space is for more product, not just duplicate for existing product."

The retailers also will need more employees to empty machines, crush recyclables and take recyclables to reclamation centers. They appreciate the increased handling charge.

Mr. Rogers said the expected boost to the state's revenue and recycling habits simply won't happen.

"It's not going to be quite as simple as people believe," he said. "Now, consumers will see an overall increase in prices of beer, soft drink and water."