ThaiBev Group manages sourcing risks through several mechanisms: critical supplier identification, assessing supplier’s sustainability risk exposure, etc. We also extend the coverage in the risk assessment process to non-tier 1 suppliers.

ThaiBev sets out mandatory requirements for suppliers to submit corrective action plan within designated period if it detects any non-compliances and monitors closely how actions are taken to resolve the issues. ThaiBev shall suspend any suppliers who fail to resolve major non-compliances within the agreed window of time from having any business transaction until further actions are properly taken and satisfy ThaiBev’s requirements.

THE BEGINNING OF SUSTAINABLE SUPPLY CHAIN
At ThaiBev, delivering quality products to our customers is as important as ensuring that the raw materials used in their production originate from sustainable sources. Realizing such concept, we offer our raw material suppliers a guideline to sustainable agriculture which sets out our expectation.

Barley is our key agricultural raw material used in distilling and brewing processes. With the unified barley sourcing standard we have in place, we are able to source and procure barley from various locations while maintaining the highest quality and compliance.

SOURCING STRATEGY
Develop alternative sources outside European region by applying the Sustainable Agriculture Guideline and similar quality standards

An Essential Part in Achieving Sustainable Supply Chain

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.

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.

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

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.

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.

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.

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.

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.

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.

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

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.

Most of materials we use are sourced locally where there are regulations concerning GMO cultivation and labeling in place. ThaiBev operates in full compliance with those requirements. As for other major components which are from overseas origin, such as, barley, they are generally cultivated from non-genetically modified crops.

Under normal circumstance, ThaiBev does not use any GMO materials in our beverage products. However, we are committed to monitor and label if it becomes applicable in the future. We expect our suppliers to disclose the usage of GMO content in their materials supplied to ThaiBev as well to ensure that our consumers are able to make well-informed decisions.

Our Approach on Genetically Modified Organism (GMO)

As Thailand’s leading food and beverage producer, Thai Beverage group (hereafter “ThaiBev”) is aware of increasing demands from population growth over the past decades. We strive to meet our consumers and customers’ requirements whilst at the same time maintaining our quality standards. In order to do so, we support and encourage responsible application of innovations and technologies.

In global level, despite being a highly controversial issue, genetically modified organism (GMO) has been widely used to enhance production. ThaiBev has recognized its potentiality in food and beverage industry. However, we are fully aware of the sensitivity of this subject matter and respect local public opinion. We accept governmental control and supervision on GMO cultivation and usage in the country we operate.

Most of materials we use are sourced locally where there are regulations concerning GMO cultivation and labeling in place. ThaiBev operates in full compliance with those requirements. As for other major components which are from overseas origin, such as, barley malt, they are generally cultivated from non-genetically modified crops. Where the ingredients of our products derive from or contain GMO, we shall clearly label them on our product as well as establish traceability and communication systems to ensure that our consumers are able to make well-inform decisions when purchasing our products.

Additionally, ThaiBev is committed to ensuring that the materials we use come from safe sources and that they reach our consumers’ hand untainted. Each shall undergo food safety testing protocols before they enter into the market. Whether or not they are GMO-derived ingredients, the same protocols may apply universally. We will continue to monitor and respond the concerns of our stakeholders, especially those of our consumers.

What is GMO?
GMO, or Genetically Modified Organism, is an organism i.e. plant, animal whose genetic makeup has been modified in a laboratory in a way that does not occur naturally or by genetic engineering. It is sometimes referred to as bioengineered organism.  

Does ThaiBev use GMO ingredients in our products?
We Identify products with GMO content as per Thai legal requirement (i.e. corn and soy bean). Currently, all products in beverage category, both alcoholic and non-alcoholic, produced by ThaiBev are GMO free.  

What is our commitment on the use of GMO?
ThaiBev recognizes our potentiality in food and beverage industry. However, we are fully aware of the sensitivity of this subject matter and respect local public opinion. We accept governmental control and supervision on GMO cultivation and usage in the country we operate. If our products are being sold in countries where there is GMO labelling requirement, we will disclose information in full compliance with the GMO regulation.

Should you have any questions regarding the use of GMO in our products, please contact us