ThaiBev Sustainability 2019

SUSTAINABILITY

SUSTAINABILITY REPORT 2019

ThaiBev Sustainability Approach

Caring for the Environment

Sharing the Value with the World

Caring for People

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Consumer Health, Safety and Wellbeing

GRI 103-1, GRI 103-2, GRI 416-1, GRI 416-2, GRI 417-1

The health issues of the world population are a major problem today. According to a World Health Organization report, 73 percent of deaths worldwide in 2020 is predicted to be from chronic non-communicable diseases such as obesity, diabetes, cardiovascular disease and cancer.

At the same time, the change in communication technology is another factor that is making consumers aware of the importance of health and wellbeing. Consumers can search for nutritional value and product safety information from various sources. As the largest producer and distributor of beverages and food in the country, ThaiBev places great importance on health and consumer safety to meet future market growth, starting from procurement of quality and safe raw materials.

ThaiBev conducts research to develop more healthy products by reducing the amount of sugar, sodium and fat as well as controls the production process to meet international standards of consumer health products while still preserving the original flavor. In addition, to give consumers confidence in the safety of raw materials, ThaiBev discloses the nutritional value of products such as energy, sugar, fat and sodium by using food labels as a communication tool.

OISHI Gold

OISHI developed a new tea formula, “OISHI Gold,” with tea leaves from Matsuda Tea Plantation, a quality tea plantation in Japan. The plantation is located on the Makinohara Plateau, Japan’s number-one tea growing area that is extremely fertile with year-round sunlight and temperatures that are best suited for tea growing. Most importantly, it is a cultivation area that receives spring water that flows directly from the Japan Alps, which is considered as a clean and pure water source. This makes the best quality tea as confirmed by many quality awards, such as The Emperor’s Cup trophy from the Emperor of Japan.

The Matsuda Tea Plantation implements meticulous growing methods by hand-picking all tea leaves, selecting only the three youngest leaves from the buds. The tea leaves are steamed to preserve tea quality before being pressed. This method creates a chemical process that brings out a special aroma in the tea leaves. This process must be done within four hours to keep the tea as fresh as possible. OISHI has developed these high quality tea leaves into a premium healthy drink. With its outstanding feature of mellow taste and low sugar content, OISHI Gold has been certified as “Healthier Choice Logo” by the Nutrition Foundation, Mahidol University.

1. OISHI Gold Genmaicha

Genmaicha is the first premium Japanese roasted rice tea to be available in Thailand. The three youngest tea leaves are hand-picked and combined with top quality Japanese roasted rice; an original recipe from 1930 giving the tea a mellow, fragrant, and unique flavor. The soft tea flavor makes it easy to drink. The flavor is elevated when taking with food making Genmaicha popular among the Japanese. OISHI Gold Genmaicha comes in two formulas; no sugar and minimal sweet (Delight).

2. OISHI Gold Kabusecha

Kabusecha tea is a premium green tea that is produced through a different cultivation process than other green teas, where a black mesh is used to cover the green tea leaves to prevent them from being exposed to direct sunlight for a week prior to harvesting. Since the tea leaves are not exposed to direct sunlight, they develop a more delicate aroma and flavor than other green teas. The leaves also contain theanine, a natural compound that helps reduce astringent taste for perfect concentrated flavors. OISHI Gold Kabusecha comes in both sugar-free and minimal sweet (Delight) formulas.

Reducing Sugar in Products

To promote consumer health, ThaiBev has been focusing on reducing sugar content in non-alcoholic beverages without affecting the original taste of the products for the past two years. Currently, ThaiBev is able to reduce the amount of sugar in all 14 products (compared to 2014 as a base year), by more than 9,800 tons in 2019.

Project Performance

Reduced sugar content in compared to 2014 as a base year

Sugar used in the production process was reduced by more than in 2019

Insight

Pitupong Soraphan

Acting Vice-President, Market Intelligence Non - alcoholic Berverage Business

“In a nationwide survey, close to 80 percent of ThaiBev’s consumers are opting for healthier choices of food and beverages in their daily diet. More than 55 percent of drinkers seek low calories and low sugar alternatives. With this healthier trend, ThaiBev is making efforts in developing healthier products, and we place importance on developing and reformulating lower sugar products. Our est Cola and est PLAY brands, where the majority of our consumers are teens and young adults - are continually being reformulated to drive down sugar content as well as launching new products that come certified with the “Healthier Choice” label. In our product portfolio, our premium ready-to-drink tea OISHI Gold serves up one of the healthiest options since it is produced from premium tea leaves right from the source where it is grown. The ready-to-drink teas are available in two options: low and no sugar.

In addition, safety is our highest priority for the millions of bottles that we serve. We are proud of our strict guidelines to ensure the highest quality and safety throughout our entire supply chain from sourcing to storage, transportation, production, and distribution. This is guaranteed by our ISO22000, NSF, BRC, and GMP/HACCCP certifications. The company believes that our consumer palettes are ready to evolve into healthier choices, and it is our job to serve healthy lifestyles in a tasty and enjoyable way.”

Promoting Good Consumer Health

ThaiBev has adjusted all ramen noodles recipes to be free of preservatives and monosodium glutamate in all OISHI affiliated restaurants, such as OISHI Ramen and OISHI Eaterium.

This includes the “OISHI Eato” ramen ready-to-eat food product group, such as stir-fried clam ramen with chili paste, yakisoba with pork and vegetables and teriyaki chicken ramen with nabe sauce.

Food Menu from KKU1 Chicken

The KKU1 or Isan Pearl 2 chicken breed, is a research development by the Faculty of Agriculture, Khon Kaen University. In collaboration with Pracharath Rak Samakkee Khon Kaen Company (Social Enterprise), farmers are encouraged to raise this breed of chicken to generate additional income. The outstanding properties of this breed are low uric acid levels (only 1.91 mg percent which is lower than other types of commercial chicken breed), less fat, with thick, firm, and tasty meat, and low in cholesterol.

Most importantly, there are no hormones or antibiotics. This breed of chicken grows quickly, is easy to raise, and can be raised free-range.

Currently the food business group uses the meat of this chicken breed in dishes such as Volcanic Grilled Chicken and Turmeric Grilled Chicken at Café Chilli Bangkok Ruamrudee, and Whole Roasted Chicken and Braised Chicken at Hyde & Seek @Plaza Athenee.

Insight

Paisarn Aowsathaporn

Executive Vice President Food Business

“In the past year, the food business of the ThaiBev Group has grown from its continuously expanding food business portfolio and branches. The company has expanded branches, developed restaurant formats and menus, and expanded delivery channels with online platforms that respond to the needs of modern consumers, to push forward the food business under the ThaiBev Group and to achieve our “Vision 2020” objectives.

Health & Nutrition development is one of our first priorities that we place importance on. The company aims to develop healthy food products and promote sustainable production and consumption. In 2018-2019, we collaborated with educational institutions on nutrition research to improve quality and food safety throughout the process.

This year, the company continues to focus on the development of Health & Nutrition continuously by creating more healthy products: reducing saltiness, sweetness, and calories in food menus, but still maintaining a delicious taste that is pleasing to Thai people. In addition, the company uses 100 percent trans-fat-free raw materials and gives consumers nutritional information on the product label. All of this is to deliver quality food, bring about consumer satisfaction, maintain popularity, continuously be a top -of-mind brand among consumers, and become a total food business leader in Asia that covers all needs of consumers.”

International Production Standards Certification

All products of the company have passed the food safety management system certification, or ISO 22000..
All ThaiBev non-alcoholic beverages and OISHI affiliated restaurants are certified GMP & HACCP (Good Manufacturing Practice & Hazard Analysis and Critical Control Point)..
Drinking water and mineral water manufacturing processes have been certified by the National Sanitation Foundation (NSF) from the USA.
Sermsuk Public Co., Ltd. and the production processes of OISHI Green Tea in UHT packaging has been certified to the standard of the Food Safety System Certification 22000 (FSSC 22000)..
Beer Thip Brewery (1991), OISHI Trading Co., Ltd. and Sermsuk Public Co., Ltd. received the FDA Quality Award 2019, organized by the Food and Drug Administration (FDA), Ministry of Public Health, to establish safe production of healthy products.

Moving Forward

By 2025, The healthy beverages sales target will increase to 75 percent of all non-alcoholic beverages.

In 2019 by the Institute of Nutrition of Mahidol University

By 2025 of non-alcoholic beverage products
must be certified as a

Plan for “Healthier Choice” Food Product Development

The food business group is cooperating with the Mahidol University to analyze the nutrition information in all OISHI Delivery 60 menus with the plan to fully disclose nutritional information and nutrient content of its products to consumers in the future.

In addition, it plans to reformulate and develop products with consideration for higher nutritional benefits to obtain the “Healthier Choice Logo” from Mahidol University in the future.

ThaiBev 2019 Sustainability

ThaiBev
2019 Sustainability