Annual report of Dansk Retursystem A/S

Dansk Retursystem A/S has published its 2008 annual report to coincide with the annual general meeting

2008 was a milestone year for Dansk Retursystem A/S. On 4 September 2008 the company had its right renewed to run the Danish deposit and return system. The company is delighted with the outcome, and not least that a political decision to extend the company’s right to operate the Danish system has been taken in recognition of the company's achievements over the years since it was first awarded the contract in 2002.

Dansk Retursystem A/S also has a new Chairman of the board of directors, Michael Christiansen, who was elected at an extraordinary general meeting of the company in August 2008. Michael is also Chairman of the board of the Danish Broadcasting Corporation (DR), and a previous managing director of the Royal Danish Theatre.

Deposit on mineral water generates new customers

Another significant event for Dansk Retursystem A/S in 2008 was the introduction of deposits on mineral water, ready-to-drink lemonade, and iced tea, which led to a sizeable increase in new customers for the company. By the end of 2008, 11,000 returns recipients had signed up with Dansk Retursystem A/S, almost double the number compared with the previous year.

Returns percentage for one-way packaging

The development trend in the Danish market for beer, soft drinks and other products on which deposits are payable continued along similar lines to the previous two years, during which time the market share for one-way packaging grew in relation to refillable packaging.

By the end of 2008, the market share for one-way packaging was 43% compared with 31% in 2007. In 2008, the total returns percentage for one-way packaging increased by 1%: from 87% in 2007 to 88% in 2008. Dansk Retursystem A/S considers this to be a satisfactory result on the basis of a reported 25% growth in the sale of one-way packaging.

Returns percentage for refillable packaging

2008 saw an estimated 24% decrease in the sales volumes of refillable packaging compared with the total indicated in 2007. Dansk Retursystem A/S is forecasting that refillable packaging will account for 45% of the total sales reported to the company by the end of 2009. The returns percentage for refillable packaging in 2008 was calculated at 102%. The reason why the returns percentage is 102% is primarily because, in a falling market for drinks products sold in this type of packaging, consumers are returning more empty items of refillable packaging than they are purchasing.

Future challenges

In 2009, Dansk Retursystem A/S will again be confronting numerous exciting tasks with the overall aim of improving the operation and efficiency of the Danish deposit and return system, and to ensure that the company is viewed as a responsible enterprise in financial, operational, environmental and professional expertise terms.

The 2008 annual report (in Danish only) can be downloaded here.