ThaiBev Sustainability

Packaging & Circular Economy	Packaging Commitment	Packaging Guideline
Packaging Materials	Packaging Collaboration

ThaiBev adheres to the circular economy principle and considers all environmental and social impacts arising from its packaging, from design to post-consumption packaging management. To help achieve more sustainable packaging management, ThaiBev focuses on five actions:

Optimization of Packaging Weight and Volume
Post-consumption Packaging Collection and Sorting
Reuse and Recycle
Innovation and Product Design for Sustainable Packaging
Stakeholder Collaboration

ThaiBev works with suppliers to design and develop packaging that uses fewer natural resources while maintaining quality and functionality.

ThaiBev (Thailand operations) has successfully downgauged aluminum cans and reduced the amount of aluminum used in can packaging by 1,200 metric tonnes compared to 2020. By 2030, ThaiBev aims to reduce the amount of raw materials used for aluminum can production by 2,700 metric tonnes compared to 2020. Other packaging reduction initiatives include reducing the weight of PET bottles, downgauging crown caps, reducing the thickness of the shrink film for trays, resizing corrugated cartons or changing them to eco-friendly packaging, and removing or reusing the paper inserts inside corrugated cartons.
SABECO has also downgauged aluminum cans by 1 gram per can set since 2019 and reduced the weight of corrugated cartons by approximately 25-36 grams per set compared to 2019 without compromising on the integrity of packaging quality.

Packaging reduction initiatives in 2023

The Beer Product Group in Thailand has a project to improve corrugated cartons and inserts by reducing the amount of paper used by approximately 3.5% per piece, which led to a reduction of packaging by 846 TONS per year and to refine the gauge of aluminum cans and lids, which can reduce aluminum use by 1.76% per piece or 152 TONS per year.

The Spirits Product Group in Thailand has a project to change the type of capseal from PVC to PET on its Meridian 700 ml product, and to reuse good-condition inserts, instead of new inserts, on the 330 and 625 ml sizes.

In the Food Product Group, Oishi has redesigned and reduced the plastic bowl and tray used for Oishi’s food delivery while maintaining the same quality and food freshness, so saving 50 tonnes of plastic.

In the Non-alcoholic Beverage Product Group, a number of sustainable packaging management initiatives have been put in place:

Sermsuk Brand has cut down the thickness of aluminum cans, which can reduce raw material usage by 37 metric tonnes per year, decreased the width and length of paper backing sheets for Crystal drinking water, reducing the amount of paper used by up to 89 metric tonnes per year and reduced the amount of plastic used by more than 300 metric tonnes per year through weight reduction of the PE plastic caps of carbonated soft drinks under the est brand.
Oishi Brand is experimenting with using perforated shrink sleeves that are easy to tear off, a tethered cap that remains attached to the bottle after consumption, as well as changing from PVC to PET labels to increase recycling feasibility. In terms of packaging reduction, Oishi has also cut down the amount of paper fiber used in production while maintaining the same strength properties.
In line with ThaiBev’s packaging commitment, Sermsuk and Oishi are currently studying the use of rPET bottles and are committed to launch products using with rPET on a commercial scale in 2024, as well as shrink film containing in up to 30% PCR (Post-Consumer Recycled Resins) for Oishi green tea.

Phase out Single-use Plastic

KFC Green Store

The QSR of Asia Co., Ltd., under the Food Group of Thai Beverage Public Co., Ltd., joined hands with KFC Thailand under Yum Restaurants International (Thailand) Co., Ltd. to open the “KFC Green Store." This store encourages customers to participate in environmental conservation efforts, aligning with KFC’s principle of “Done the Right Way." This principle is practiced through quality ingredients, fresh and clean food, and our determination to save the earth. The concept of “KFC Fast Good” is to do good and be sustainable for the world.

Currently, there are two KFC Green Store branches: Vibhavadi Branch, Bangkok, and Depot by VANACHAI, Chachoengsao. KFC Green Store has switched the packaging to materials with minimum plastic, e.g., new knives and forks with 20% less plastic, switching to a water-based coating instead of PE film-coated soda cups and paper sauce cups. Moreover, solar panels are installed on its rooftop to generate the power used in the restaurant. This reduces the use of electricity by 20%. The store also has an air-purification system installed to treat the air before discharging, and this initiative includes EleX by EGAT charging stations for EV users, marking a step forward in advancing eco-friendly efforts in line with the Thai Beverage Policy.

In 2023, the KFC Green Store, operating under the Zero Waste concept, used recycled materials for design and decor. The KFC Green Store launched a new campaign to encourage customers to enjoy their chicken by using their hands instead of plastic cutlery, aligning with Colonel Harland David Sanders original concept. This reduces plastic usage by an average of 40,000 pieces per year. And the stores also join hands with IRPC to encourage customers to sort the trash (knives, forks, spoons, and mashed potato cups) and recycle it into other products. The new experience at KFC Green Store expects to see customers’ cooperation in post-consumer waste sorting or recycling processes that align with the circular economy.

A crucial part of closed-loop packaging management is to collect and sort post-consumption packaging. Thai Beverage Recycle Co., Ltd. (TBR), a subsidiary of ThaiBev, is task with ThaiBev’s post-consumption packaging collected via local business partners throughout the country and sorts them at company-owned sorting facilities. Main packaging materials retrieved by TBR include glass bottles, cullet, aluminium cans, PET bottles, and corrugated cartons.

TBR Recycling Facility in Nakon Ratchasima (left) and Ayutthaya (right)

In FY2023, TBR expanded into the HDPE collection business and retrieved 188.87 tonnes of post-consumption HDPE bottles for recycling.

In order to ensure efficient closed-loop post-consumption packaging management, TBR sends sorted post-consumption packaging directly to intended users, such as manufacturers and recyclers.

Glass contributes to the highest volume of key packaging material consumption at ThaiBev. It is used to package various products, including white spirits, blended spirits, whisky, brandy, beer, carbonated soft drink, drinking water, etc. In FY2023, ThaiBev reused over 1.364 million glass bottles, and collected 276,387 tons of cullet to be recycled. The amount collected is equivalent to 97 percent of returnable glass bottle products sold by the company in Thailand.

Increase Reusable Packaging

A nationwide campaign was launched to promote ‘Returnable est COLA bottles’ focusing on food shops and restaurants channel. As an industry, returnable glass bottles has been losing its charm at the expense of more convenient plastic PET bottles. However, EST brand sees sustainability differently and committed to re-activate relevance of this format driving growth of +7% and maximizing 80% of SermSuk’s environmentally friendly packaging portfolio in this channel, surpassing industry peer performance rates.

SABECO applies the concept of returnable packaging by exchanging bottles and crates and nearly 100% of glass bottles are returned to the production process. SABECO has also made efforts to downgauge of aluminum cans and reduce the weight of corrugated cartons.

Recyclable Packaging

ThaiBev’s Carbonated Soft Drinks (CSDs) and Green Tea products are no longer sold in colored PET bottles to facilitate feasible recycling process. Realizing the potential environmental impacts of secondary packaging, ThaiBev is also working closely with its suppliers to study the possibility of switching from non-recyclable to recyclable or reusable alternatives. For instance, ThaiBev currently experiments on using PET of PVC labels in Oishi Green Tea products

Oishi is also developing mono-layer material to replace multi-layer material for Oishi Eato, a Japanese-style ready-to-eat meal, and has changed the cap seal for Oishi Sauce, a Japanese-style dipping sauce and seasoning, from non-recyclable PVC plastic to PET plastic. The latter has been implemented since October 2022 and can reduce the amount of non-recyclable plastic by more than 138 kg per year.

PERCENTAGE OF GLASS PACKAGING RETRIEVED

PERCENTAGE OF PAPER PACKAGING RETRIEVED

Aluminum Can Closed-Loop Recycling

To further ThaiBev’s commitment to ensuring that recyclable packaging is actually recycled, TBR signed a Memorandum of Understanding (MOU) on “Transparency of Aluminum Can Closed-Loop Recycling”, which aims to establish a fully integrated recycling system for used aluminum cans in Thailand through supply chain collaboration. The objectives are to improve the efficiency of the recycling process, the recycling rate, and the proportion of recycled content in aluminum cans. An “Aluminum Loop” symbol was designed to create awareness among consumers, and is displayed on many product brands including ThaiBev’s popular soft drink products: Chakulza and est cola. The campaign is an example of how manufacturers and brand owners can collaborate with partners along the supply chain, and influence the demand for recycled packaging, thus boosting the recycling rate.

More information on aluminium loop
https://www.aluminiumloop.com

ThaiBev established BevTech Co., Ltd. (BevTech) as a Research and Development centre with one branch, the Packaging Business, that develops sustainable packaging and alternatives.

BevTech also researches machines and robotics to facilitate automation in ThaiBev’s production facilities. The Packaging Business is responsible for end-to end packaging management, from conceptual design, materials selection to packaging production process development to minimize both environmental and social impacts.

The following factors are considered in BevTech’s packaging development:

Specification
Law and Regulation
Material Availability
Cost and Benefit
Environmental Impacts
Energy Consumption
Safety

BevTech’s major achievement in recent years has been the implementation of an automated bottle-sorting conveyor belt and the introduction of artificial intelligence (AI) bottle-sorting technology through collaboration with CMKL University, a top-tier research institute established as a collaboration between King Mongkut’s Institute of Technology Ladkrabang (KMITL) and Carnegie Mellon University (CMU), world's leading university on AI technology.

ThaiBev engages with stakeholders throughout its value chain to ensure end-to-end sustainable packaging management. It also works closely with TIPMSE (Thailand Institute of Packaging and Recycling Management for a Sustainable Environment) of the Federation of Thai Industries (FTI). In 2023, ThaiBev’s Chief Non-Alcoholic Beverage Business and Chief Supply Chain Management Thailand were assigned as President and Vice President, respectively, on the TIPMSE Executive Board. As one of the co-founders of the Thailand Supply Chain Network (TSCN), ThaiBev has also been actively engaging with other TSCN co-founders to drive sustainable packaging management in Thailand.

2023 Highlight
Extended Producer Responsibility (EPR)

ThaiBev has been actively supporting TIPMSE (Thailand Institute of Packaging and Recycling Management for Sustainable Environment) in developing the Extended Producer Responsibility (EPR) scheme in Thailand. ThaiBev and its subsidiaries, OISHI and Sermsuk, along with other leading companies in Thailand, joined a consortium in ‘The Intention Declaration of Extended Producer Responsibility’ to drive EPR through the PACKBACK program. ThaiBev, as one of the major drivers of the EPR scheme, is in charge of managing PACKBACK pilot project in Chonburi province, and data collection on glass recycling to support the development of a national packaging database.

In 2023, PACKBACK has engaged with more than 100 parties including producers, retailers, recyclers, local government organizations, and research institutes. PACKBACK also organized a “PACKBACK in Action” event to drive voluntary EPR and expand cooperation.


Read More Information about PACKAGING & CIRCULAR ECONOMY in Sustainability Report 2023