Home / Supply Chain
2019
Raw Material Sourcing
Agricultural raw materials are the main used in the production of alcoholic beverages, non-alcoholic beverages and food. ThaiBev places high importance on sustainable sourcing while maintaining both environmental and social responsibility. The company procures its agricultural raw materials in accordance with the ThaiBev Sustainable Agriculture Guideline, as well as nationally and internationally recognized standards.

COMMITMENT IN 2025
ThaiBev will procure agricultural raw materials which are the main raw materials in the production process
from sources that follow high standards and are environmentally and socially responsible.

FARMERS DEVELOPMENT PROGRAM

ThaiBev has launched numerous farmer development campaigns, collaborating with both private and government sectors, in order to support and educate local farmers in practicing sustainable agriculture and in compliance with applicable renowned standards e.g. BonSucro, RSPO, SAI Platform, Good Agricultural Practice (GAP) etc.

The majority of these local farmers are ThaiBev non-tier 1 suppliers who cultivate and supply agricultural commodities to ThaiBev’s tier 1 suppliers. Understanding the challenges local farmers face in adopting sustainable agriculture practice, ThaiBev encourages its tier 1 suppliers to implement similar farmer support programs to ensure that the farmers have sufficient knowledge and resources.

For instance, ThaiBev has worked with farmers to help them solve water shortage problem that occurs during the dry season, improving check dams to increase water storage and deliver water to agricultural areas with greater efficiency. ThaiBev also encourages farmers to practice organic farming and has a network of farmers in 29 provinces.
READ MORE ABOUT OUR FARMER DEVELOPMENT PROGRAMS
Key ESG Issues Addressed

Soil Fertility

Water Conservation

Organic Farming

Biodiversity Conservation

Income Distribution

Compliance with Applicable Standards
Sourcing Strategies
Raw Material Proportion of Agricultural Raw Materials Responsibly Sourced Applicable Standards Responsible Sourcing Strategies
2018 2019

Malt and Hops
41% 100% SAI Platform
SEDEX
Supplier Selection
Source from suppliers who are member of Sustainable Agriculture Initiative (SAI) Platform or operate in compliance with such standards

Sugar
22% 37% BonSucro
ProTerra
Farmer Support
Partner with sugar producer to support sugarcane farmers to operate in compliance with BonSucro requirements

Supplier Collaboration
Collaborate with affiliated sugar producer to obtain BonSucro certificate and create the demand for certified sugar in Thailand

Rice
0% 0% Thai Labour Standard (TLS)

Agricultural Practice (GAP)
Supplier Collaboration
Encourage major rice millers and distributors to address human rights and environmental issues in the farming processes in compliance with local applicable ESG standards

Palm Oil
89% 90% Roundtable on Sustainable Palm Oil (RSPO) Supplier Collaboration
Promote the use of RSPO certified sustainable palm oil focusing on addressing deforestation and GHG emissions through on-going discussions with our key suppliers

Tea Leaves
100% 100% Organic Production
Rainforest Alliance & UTZ
Farmer Support
Continuously engage with key suppliers to support farmers in adopting sustainable agricultural with the primary focus on organic farming
MALT & HOPS
Malt and Hops are the key agricultural raw materials used in distilling and brewing processes. With the unified sourcing standards we have in place, ThaiBev is able to source barley from various locations while maintaining the highest quality and compliance.
PROGRESS
100%
OF MALT AND HOPS SOURCED ARE THIRD-PARTY CERTIFIED
APPLICATION
Malt and Hops are the key agricultural raw materials used in distilling and brewing processes.
TAKING ACTIONS
ThaiBev encourages and supports malt and hops suppliers to become active members and follow the Sustainable Agriculture Initiative Platform (SAI), a global standard for agricultural practices. Most of the suppliers are members of SAI Platform and manage their own farms in accordance with such standard. Those who are not SAI Platform member operate under SEDEX /SMETA and have external verification in place. Non-tier 1 suppliers who supply barley to the malt suppliers who do not have their own farm are SEDEX/SMETA certified as well.
SUGAR
PROGRESS
22%
OF SUGAR SOURCED ARE BON SUCRO CERTIFIED
APPLICATION
Sugar is mainly used in the production of ThaiBev’s non-alcoholic drinks and is locally sourced in Thailand.
TAKING ACTIONS
ThaiBev partners with major sugar manufacturer to improve sugarcane crop quality and promote sustainable agriculture practice among farmers, as well as supports large sugar producers by applying the Bonsucro (Better Sugar Cane Initiative) international standard.

In Thailand, there is limited supply availability for BonSucro certified sugar due to low demand in the market which makes it difficult for ThaiBev to increase the volume of certified sugar. However, ThaiBev continuously collaborates with its affiliated sugar supplier in order to launch farmer development and education program which outlines the requirements in line with BonSucro standard. 100% of ThaiBev’s sugar suppliers in the approved vendor list have BonSucro certificate in place.
RICE
PROGRESS
100%
of rice sourced is pesticide-free
APPLICATION
Rice is mainly used in the production of ThaiBev’s product and is locally sourced.
TAKING ACTIONS
ThaiBev engages with the local farmers to properly educate them in adopting sustainable agriculture practice and makes them aware of relevant sustainability issues in the agricultural processes, for instance, water efficiency, soil fertility, organic farming, etc.

Additionally, ThaiBev has implemented a strict pesticide control for rice. It is included as the requirement in its product specification. ThaiBev has systematic process to sample and test the product to ensure food safety.
TEA LEAVES
PROCESS
100%
OF TEA LEAVES SOURCED ARE THIRD-PARTY CERTIFIED
APPLICATION
Green tea products contribute majorly to ThaiBev’s Non-alcoholic Beverages product portfolio. The highest quality tea leaves grown via organic farming are being used to produce our green tea products.
TAKING ACTION
All of the tea leaves used in ThaiBev’s production of Non-alcoholic Beverages are certified by either the Organic Agriculture Standard issued by Ministry of Agriculture and Cooperatives (Thailand) or UTZ standard (Rainforest Alliance). The requirements in obtaining such certification cover all key essential issues stated in the EU Organic Farming, for instance climate and environment protection, conservation of soil fertility, absence of GMO, etc. ThaiBev also displays the Organic Product label on its green tea products to ensure that its customers can make a well-informed purchasing decision.
PALM OIL
PROCESS
90%
OF PALM OIL SOURCED ARE THIRD-PARTY CERTIFIED
APPLICATION
Palm oil is a key ingredient used in both restaurant business and manufacturing of packaged food.
TAKING ACTION
ThaiBev supports large-scale palm oil producers and small-scale farmers in the responsible and efficient production of palm oil and to be certified with the Roundtable on Sustainable Palm Oil (RSPO) international standards.
In 2025, ThaiBev has set a target to source
100%
of RSPO certified palm oil to be used in both restaurant businesses and manufacturing of packaged food
Sustainable Agriculture Guideline
An Essential Part in Achieving Sustainable Supply Chain

Introduction
Thai Beverage Group (hereafter “ThaiBev”) seeks to deliver a quality end product which answers our consumers’ demand and originates from a sustainable source. It has always been our concern to build a solid and effective supply chain in collaboration with our suppliers. ThaiBev’s Sustainable Agriculture Guideline (hereafter “the Guideline”) shall be our additional requirements for our suppliers in order to ensure that the material we source meet our standards.

We expect our suppliers to share our vision on sustainable agriculture and adopt the same practice to their own supply chain.

Scope
The requirements stated hereinafter shall apply to only agricultural raw material suppliers (hereafter “suppliers”). This includes suppliers’ related business entities, for instance, suppliers’ affiliates. Raw materials shall refer to only unprocessed materials.

Approach
We expect our raw material suppliers to adopt a sustainable agriculture practice using the approaches stated below.

Conservation of Biodiversity
Suppliers shall protect the natural state of ecosystem, ensuring sustainable use of natural resources and where possible, avoid interfering at all. Suppliers shall not source any agricultural raw materials in high conservation values or legally protected area under any circumstances.

GMO Declaration
Suppliers shall notify ThaiBev if their raw materials are GMO or contain or derive from GMO ingredients. They must also comply with regulations concerning GMO in countries where they operate. Please refer to ThaiBev’s GMO Guideline for more details on our position on GMO.

Recognition of Land Rights
Suppliers shall not violate the community’s right to access land and natural resources and shall respect the established rights of indigenous/tribal people to their land as well as their free, prior, and informed consent (FPIC). Furthermore, we strongly encourage our suppliers to maintain a good relationship with the communities in which they operate, conduct impact assessment of their operations on local community on regular basis, and establish development programs where necessary.

Local Agriculture
Suppliers shall promote domestic agriculture and minimize pollution from the transportation of raw materials harvested. We encourage our suppliers to provide local farmers, whose raw materials they rely on, with knowledge and support necessary to promote sustainable agriculture and secure long-term supply of raw materials.

Organic Farming
Suppliers shall adopt organic farming in their own agricultural operation or promote organic farming practice where applicable. We encourage suppliers to obtain organic farming certification from third-party or comply with organic farming standards established in countries where raw materials are being sourced.

Pesticide Control
Suppliers shall control and closely monitor the usage of pesticide to prevent any contamination particularly of nearby water sources. Suppliers are obliged to establish a pesticide residue limit for their raw materials. Where in use, pesticides should be applied responsibly in adequate amount required to control the invasion of pests and should be stored properly in a way that they do not produce negative impacts on surrounding communities.

Soil Management
Suppliers shall protect and improve soil fertility, for instance, by conserving soil, rotating crop, and maintaining the balance amount of soil nutrient.

Water Consumption
Suppliers shall measure their water consumption and identify opportunities to reduce their water usage where possible. In addition, we urge suppliers to conduct water risk assessment of their operating sites using internationally recognized tools and implement mitigation plan in area where water stress level is found to be significant.


ALSO AVAILABLE AT THAIBEV SUPPLIER LIFE CYCLE MANAGEMENT