Beverage companies flag drink price rises

Prices of bottled and canned drinks will rise next week following the reinstatement of the Northern Territory's original cash for containers scheme.

The Australian Food and Grocery Council claims the scheme will cost the average Territory family an extra $300 a year.

The council represents the beverage industry, which had successfully challenged the legality of the Territory scheme in the Federal Court.

But the Territory has received a permanent exemption from the Commonwealth's Mutual Recognition Act, making the scheme legal again.

The council says the recycling scheme is effectively a tax on drink containers, and consumers will bear the cost of it.

Beverage company Lion says its wholesale prices in the Territory will rise from next Thursday.

It says the increases will cover 10 cent container deposits and "scheme compliance" costs.

Coca-Cola Amatil has already announced it will raise its prices.

Source: ABC News, 9 August 2013