What are ThaiBev’s beliefs? We believe in developing our human capital as if they are family, and we operate as an ethical organization to protect the health of our customers and to meet the standards of all stakeholders in the name of business excellence and the creation of sustainable growth.
Innovation and the application of appropriate technology to create solutions and self-sufficiency is at the heart of SEP and also ThaiBev’s own approach toward sustainability.
Consumer behavior and demands are changing rapidly owing to growing populations, rising incomes, and new lifestyle trends. All of these factors pose significant challenges to the food and beverages industry, creating demand for new products and also innovations in how the products are produced. At the same time, growing concern for social and environmental issues also drives the industry to improve both its products and processes.
Product and process innovation is thus central to business success in the food and beverages industry in today’s ever-changing environment. ThaiBev emphasizes its product innovation to increase its product range, while putting strong emphasis on process innovation not only to improve its efficiency and productivity but also to respond to the changing trends that could pose risks to its business. Additionally, ThaiBev continuously seeks to encourage innovation within its organization as a means to address global social and environmental challenges and achieve long-term goals, in line with Goal 9 of the UN Sustainable Development Goals.
The idea of innnovation in both products and production process is in line with ThaiBev’s Vision 2020, which aims to achieve long-term goals.
|Process Innovation||Product Innovation|
|Reach – building the company’s status as leader
throughout all processes
|Growth – strengthening the company’s position in the market|
|Professionalism – benefiting from synergies of all parts||Diversity – increasing non-alcoholic beverages revenue|
|Brands – expanding businesses|
ThaiBev fosters an innovation culture for employees at all levels by creating a working environment that cultivates creativity and innovation through the ThaiBev “B” Core Value: Be Best- Be Bold – Be Bright. This value instills its employees with the courage to always innovate, both internally within the organization and through external partnerships.
ThaiBev has established its research and development center to continuously support the development of internal ideas by pursuing an open innovation approach. This approach allows for the utilization of the ideas of external parties through collaborations with a myriad of partners such as suppliers, NGOs, and local universities. By leveraging strategic partnerships with internal and external stakeholders, ThaiBev is able to integrate ideas and creativity into superior advanced processes and innovative products, as well as strengthen its technical knowledge-base. In addition, ThaiBev continuously innovates, develops and designs packaging and work processes. 44 of these innovations are currently submitted to the Department of Intellectual Property, Ministry of Commerce for patent and petty patent applications.
Priority Areas of Innovation
External Third Party Collaborations
ThaiBev strives to implement best practice processes and state-of-the-art technology to optimize operations and add value to the organization. Across the value chain, ThaiBev progressively identifies improvements through process innovation. For instance, this includes the development of software for its product distribution system which enables it to monitor the status of logistics operations and increase the efficiency of its communication channels. Additionally, at its operational sites ThaiBev emphasizes operational efficiency through mechanization, which is the change in manufacturing processes where machines replace people to improve speed and accuracy, reduce manual labor, and improve the workforce’s quality of life. The machines used must be of high production capacity and maintained in their best condition to suit current needs.
Automatic Partition Inserter
To reduce the time-consuming and labor-intensive process of manually inserting partitions into corrugated boxes, ThaiBev has developed an automatic partition inserter. The machine ensures higher accuracy and speed, which allow faster transportation and distribution.
Automated Bottle Sorting Tool
ThaiBev has developed an automated bottle sorting tool to identify incorrectly returned drinking water and soda bottles and to prevent these bottles entering the bottling process. This tool allows it to remove incorrect bottles from the bottling line with a 100% success rate. Therefore, losses of water, soda, additional packaging, and labor costs have been significantly reduced.
Water Botting Line Improvement
For the 1500 ml. water bottling line, ThaiBev increased the filling valve’s speed so that water bottles are filled faster. The Company also improved the fitting of parts to extend the lifespan of the filling valve while increasing the speed of filling. This innovation is currently under review for patent approval by the Department of Intellectual Property, Ministry of Commerce. Additionally, ThaiBev also increased the efficiency of the bottle rinsing process by resolving losses due to leakages at the rinsing set and modifying the rinser, resulting in a saving of 102,312 liters of water annually.
Golden Award Under the Genba Kaizen
In addition, ThaiBev won the “Golden Award” under the “Genba Kaizen” sub-heading in the “Thailand Kaizen Award”. This award shows how well ThaiBev has adopted the Kaizen approach, which focuses on changing or improving processes to manage its work more efficiently and effectively in a steady manner. ThaiBev’s staff were able to adapt and improve their work flow and successfully extend this to other automated and semi-automated mechanical aids.
The food and beverage market is intensely competitive. With consumers offered numerous choices of foods and drinks to purchase, product innovation is crucial to ThaiBev’s business, as ThaiBev aims to diversify and grow its market position.
New products mean new consumers. Its stance on product innovation is that ThaiBev wants to create a more exciting and interesting consumption culture and experiences. By continuously listening to consumer feedback and conducting market research, its product development team leverages advanced technology and uses it for products that meet consumers’ needs.
Oishi, leader in the ready-to-drink tea market, has developed innovative products based on a Japanese identity that is fun and oriented towards the younger generation. The launch was a new product: Oishi Green Tea with Kyoho Grapes Flavoring and Nata de Coco, making it the first green tea product in Thailand with Nata de Coco. After the launch, Oishi Kyoho was extremely successful among the new products in the ready-to-drink tea market in 2016 when compared to competitors. The new green tea also contributed to an overall increase in sales of products in the Oishi group, resulting in a 23% increase in revenue in the 380 ml. market (data from January-September 2016).
Rock Mountain Soda Water
ThaiBev has launched a new soda product under the “Rock Mountain” brand. The new product uses cold infusion technology in the production process allowing the soda to remain fizzy longer. According to consumer research, the product has received very positive feedback, as consumers like the packaging design and are especially satisfied with the improved effervescence which, when mixed with drinks, gives a more satisfying taste.
ThaiBev applies the three key SEP principles – Moderation, Reasonableness, and Prudence together with SEP’s two key values, Knowledge and Virtue – throughout its supply chain management to mitigate risk and create positive economic, environmental, and social outcomes.
ThaiBev focuses on building capacity for its suppliers to establish a circular economy; resulting in a supply chain that minimizes environmental impact, generates employment and income in local communities, and stimulates the national economy.
The core of a sustainable supply chain at ThaiBev involves delivering high quality and valuable products to consumers, while maintaining responsibility towards stakeholders under the principles of good governance. From Sourcing, Production, Distribution, Marketing and Sales, to Post-Consumption Packaging Management, ThaiBev values its suppliers as critical stakeholders in the journey towards long-term mutual growth. With this in mind, ThaiBev emphasizes capacity development for its partners in order to foster strong and sustainable business relations. In 2016, various activities and mechanisms were initiated to facilitate cooperation on sustainable development and business practices for suppliers.
To ensure that consumers receive safe and high quality products, ThaiBev places a strong focus on raw material sourcing by enforcing strict measures on safety testing for all raw materials that enter the production process, including its material properties, toxicity and contamination levels, and any use of Genetically Modified Organisms.
In addition to quality, ThaiBev has incorporated a sustainability factor into the selection process of raw materials suppliers, namely, suppliers’ environmental impact management, employment policies, and ethical business practices. Potential suppliers must register with the Supplier Life Cycle Management (SLCM) website, which requires them to accept the ThaiBev Supplier Code of Practice and conduct a self-evaluation survey on sustainability. Only those who pass this initial screening process will enter the next stage of the pre-qualification process prior to being deemed suitable suppliers for ThaiBev Group.
Supplier Code of Practice
In order to solidify the Company’s dedication to sustainable business practices, ThaiBev announced the Supplier Code of Practice as a working guideline for its suppliers. The Code of Practice ensures smooth transactions and mutual benefits between ThaiBev and its suppliers, and stipulates requirements on business ethics, environmental management, human rights, as well as occupational health and safety. Following the announcement process, the first phase of application requires suppliers to accept and submit their signed acknowledgement of the Supplier Code of Practice to ThaiBev Group.
2020 TARGET 100% of suppliers operate in compliance with ThaiBev’s Supplier Code of Practice.
After the screening and pre-qualification process, compliance with the Supplier Code of Practice is required as one of the conditions for a contract between ThaiBev and its suppliers. A review and compliance monitoring process have been established, where ThaiBev highly trained auditors and procurement staff conduct on-site audits at suppliers’ business operations; a standardized goods inspection procedure was also developed to streamline processes. In order to rank supplier’s according to performance scores, the procurement working team collects and reviews supplier performance on an annual basis and classifies these scores. Non-compliant or underperforming suppliers must develop a corrective action plan to be completed within a predefined period, or risk contract probation or termination. In 2016, 100% of audited suppliers complied with ThaiBev’s Supplier Code of Practice, and 55% were ranked as Class A or high-performing suppliers.
ThaiBev also undertakes an annual supplier risk assessment in order to identify high-risk suppliers that require special attention and periodic on-site audits, as determined by audit protocol. In 2016, 18% of critical suppliers were audited on-site.
Supplier Life Cycle Management (SLCM)
In 2016, ThaiBev formally launched the Supplier Life Cycle Management (SLCM) website to reduce the time required for sourcing and procurement, and to increase competitiveness through the use of an automated system to mobilize the procurement process. The website serves as a registration tool for new suppliers, an ordering channel with current suppliers, and a communications channel between ThaiBev and its suppliers. Suppliers can also gain access to ThaiBev’s sustainability policies on various issues through the website, including the Supplier Code of Practice, Genetically Modified Organisms (GMOs) Guideline, Sustainable Agriculture Guideline, and Packaging Guideline. Following its launch, the initial effectiveness of the new website was assessed by evaluating responses from registered users, and by comparing the reduction in timeframe for the sourcing-to-payment process against the usual manual carrier service. For more information, visit the SLCM website at http://slcm.thaibev.com/EN/
ThaiBev initiated the Supplier Award Program to promote capability development, competitiveness, and innovation within the industry. An Award Committee and Working Team were established for the program, comprising various functions across ThaiBev, to instill confidence among both the Company’s staff and suppliers in the fairness and transparency of the process. Data on supplier performance are collected and reviewed quarterly for evaluation. In 2016 ThaiBev formally launched the Supplier Award Program and invited all critical suppliers to participate, with the aim to expand the program to other suppliers in the future and to provide opportunities for them to showcase their potential and grow alongside ThaiBev. The awarded suppliers are eligible for a potentially larger purchasing volume and special supplier training programs, as well as meetings with high-level executives to exchange views and visions for business management and transformation.
ThaiBev supports the sourcing of materials from local suppliers in order to generate local employment. ThaiBev believes that a strong national economy begins with income distribution that allows local communities to be self-reliant. As a result, ThaiBev focuses on sourcing from areas in the proximity of its production sites, which provides the advantage of generating local employment and delivering added value for local materials, and additionally minimizes pollution from transportation.
2020 TARGET 95% of total group procurement ratio sourced from local suppliers*
As a beverage manufacturer, water is a vital element of ThaiBev’s production process requiring thorough attention and management. Aside from managing water resources from the manufacturing process, ThaiBev also assesses critical suppliers’ water-related risks using the Global Water Tool (GWT) and Water Resource Review (WRR). The assessment covers supplier’s water management policies, water stress levels, and stakeholder conflicts.
In 2016, ThaiBev assessed all of its critical suppliers on water-related risk issues, and only one of them has been identified as at risk. However, the identified supplier has a corporate water efficiency policy in place, and further operates in compliance with respective government’s water management practice. Nevertheless, ThaiBev has sought alternative suppliers and limited allocation of volume to the high-risk supplier in order to properly mitigate production risk.
ThaiBev focuses on the development of packaging that meets consumers’ demands and takes environmental impacts into account. Based upon the belief that good packaging not only protects the product and attracts consumers through beautiful design, but also generates minimum waste and pollution, ThaiBev applies the 3Rs principle and strictly adheres to the the Company’s requirements in developing eco-friendly packaging.
In order to promote consumer participation in post-consumer waste reduction, ThaiBev established 46 glass bottles collection centers across the country, with a total of 1,544 staff at all locations. In 2016, ThaiBev collected 1,155,159,217 bottles for re-packaging, reducing greenhouse gas emission by 1,028,092 metric tons CO2e.
2020 TARGET 80% of main packaging is reused, recycled, and reclaimed
“To achieve desired results that are also beneficial and morally just, you need more than just knowledge: You need honesty, sincerity, and justice. Knowledge is the engine that propels the vehicle. Moral principles are the steering wheel or rudder that lead the vehicle safely in the right direction.”
His Majesty King Bhumibol Adulyadej
8 July 1967
ThaiBev is dedicated to running its business with the honesty and integrity espoused by SEP. We also apply the SEP principle of Prudence to prevent negative impacts to prepare for change and reduce risk.
ThaiBev is committed to the principles of good governance and conducting business through an effective, transparent and accountable management system. This involves not only operating under the rule of law and regulations, but demonstrating a commitment to leading by example in professional excellence, transparency, and good governance. We believe that such an approach creates trust for our shareholders, investors, employees, customers, and all relevant parties and stakeholders.
ThaiBev has developed plans to provide annual training on the laws and regulations of the Singapore Stock Exchange to our Board Members, Management, and employees from relevant functions in ThaiBev Group, to be hosted by the Compliance Unit, Office of the Corporate Secretariat. Any changes or amendments to the aforementioned laws and regulations will be reported during meetings of the Board of Directors, or through e-mail as deemed necessary.
ThaiBev publishes our Corporate Governance Report in the 2016 Annual Report, which provides an overview of the company’s structure and processes pertaining to the disclosure of governance-related information. The Report further details information on company performance, future business opportunities, and approaches by which the Board of Directors, Management, and shareholders implement sustainable development to create a competitive advantage. ThaiBev’s commitment to sustainable business growth for our customers and to creating long-term value for our shareholders is also demonstrated through our consideration of both internal and external stakeholder interests.
Furthermore, ThaiBev has developed and announced use of the Whistleblowing (Grievance) Policy as a way to emphasize the importance of receiving and responding to grievances both inside and outside the organization. In 2016, there were no significant incidents of conflict found, and no significant cases of grievances related to ethics which were investigated and found to be valid.
ThaiBev’s Business Codes of Conduct serve as important standards in encouraging the ethical conduct of all individuals, in compliance with laws, and company values and morals. The Board of Directors, Management, and employees all have the responsibility to accept and strictly adhere to the values espoused in our Codes of Conduct with integrity. Moreover, all individuals are required to observe ethical conduct according to the Corporate Governance Policy. Such practices will enable ThaiBev to maintain its responsibility to all stakeholders which include society as a whole and the Singapore Exchange. ThaiBev’s Codes of Conduct comprise four important and intersecting components: Company Code of Conduct, Board of Directors Code of Conduct, Management Code of Conduct, and Employee Code of Conduct. All individuals receive training on the relevant Code of Conduct through both face-to-face training, and online through the CG E-Learning system.
Good governance lays the foundation for strong legal compliance. With this in mind, ThaiBev’s anti-corruption policy sets robust measures to protect against corruption, and serves as guidelines in business conduct and risk management for a sustainable future. Board members, management, and employees must adhere to this policy, and are also responsible for upholding it to the highest standards. They assume an important role in providing consultations in the case of suspicious activity, and refraining from corruption of all forms – direct and indirect – related to ThaiBev’s businesses and functions in all countries of operation. The President and CEO has the duty to monitor and implement a robust and efficient anti-corruption system, and report to the Chairman of the Board of Directors and the Audit Committee and Internal Control Committee. In any case of corruption, guilty parties will undergo a disciplinary hearing process. Once the relevant committee completes its investigation as required, the responsible party will receive punishment according to ThaiBev’s regulations on inappropriate behavior and conduct violations. In the case that a corrupt practice is also a legal violation, the responsible party may be subject to further legal action.
For more information on Anti-Corruption policy and the Whistleblowing (Grievance) Policy, please visit www.thaibev.com
ThaiBev hopes that all employees will comply to organizational rules and regulations upholding to company’s Code of Conducts and laws of countries that ThaiBev is operating. Any breach of the applicable regulations in ThaiBev’s operations will be decisively put to an immediate end and appropriate measures will be applied. Scope of ThaiBev breach reported in 2016, exclude Oishi and Sermsuk, has 2 minor cases. Breaching are categorized by monetary values of the action. Major case is when impact of the action has monetary value of 300,000 baht or more and minor case is less than 300,000 baht.
ThaiBev manages risks under rapidly changing circumstances with appropriate approaches to ensure the Company’s operational results are consistent with its objectives and goals. The Board, who is responsible for managing risks at ThaiBev Group, has appointed the Risk Management Committee to support the Board on the oversight of enterprise risk management, which is a crucial mechanism in leading the ThaiBev Group to achieve the determined objectives and goals. It helps reduce loss, increase opportunities and competitiveness and enable the sustainable growth of the Company, including adding value to the organization, shareholders, and stakeholders, as illustrated in the diagram “ThaiBev Group’s Enterprise Risk Management and Risk Management Committee Oversight”. As for “ThaiBev Group’s Enterprise Risk Management Structure”, please see the Risk Management Report in the Annual Report for 2016.
To ensure common understanding and raise awareness on the importance of risk management among executives and staff and to develop an organizational risk management culture, ThaiBev incorporates the risk management in both generic and specific topics as one of the new employee orientation subjects and employees’ routine training and development. Furthermore, the Company established a channel for employees to report possible risks to the organization in writing to their supervisors or to the Office of the President through the dedicated email address. The President and CEO will consider and take any further action deemed appropriate.
Potential risks are evaluated by considering ThaiBev’s business goals and the global megatrends on the economic, environmental and social and that are materiality issues for business sustainability. These are considered as emerging trends for establishing risk management approaches to minimize losses or potential impacts, or to increase ThaiBev Group’s business competitiveness.
|Trends||Risks and Potential Effect||Management|
“It is extremely important to encourage and help people to earn their living and support themselves with adequate means, because those who are gainfully employed and self-supporting are capable of meaningfully contributing towards higher levels of development.”
His Majesty King Bhumibol Adulyadej
18 July 1974
ThaiBev commits to helping its employees undertake a career of life-long learning, to enhance their understanding, wisdom and insight in the name of fulfilling the Sustainable Development Goals.
ThaiBev believes in infinite human potential. ThaiBev believes that challenging tasks can expand the capacity of its staff. Whenever we increase someone’s capabilities, our capacity grows as well. Opportunity at ThaiBev is not restricted to a selected few, but is available to all ThaiBev staff from every age group, every subsidiary, every department and every country where ThaiBev is present.
All ThaiBev employees have the opportunity to learn and develop their careers from their very first day of entering the Company. Senior managers communicate the Company’s goals and strategies to employees via key performance indicators and help to develop the employees’s potential to achieve career goals.
Supervisors plan regular assessment dates throughout the year, after which employees and supervisors review performances and develop their expertise through coaching and feedback. Finally, year-end assessment of work and potential for development is used to consider staff career paths, promotions, reassignments, transfers, other possible benefits, the selection and development of outstanding members of staff, and to identify key paths for succession.
ThaiBev has formalized a systematic learning process that improves work skills and is applicable to the real work situation. Additionally, staff are expected to develop a positive attitude and good behavior that can leave sustainable impacts on both the staff and the organization. In order to achieve these goals, the principle of 70:20:10 was incorporated into human capital development programs.
In preparation for the year 2016 training, executives held meetings with relevant departments on the Training Roadmap for various levels of staff and their Individual Development Plan: IDP, which was developed based on communications between staff and supervisors after the annual evaluation. To attend training courses employees can self-register online and then submit the request to their supervisors for approval. Supervisors of all ranks have the obligation to support and ensure that their staff attend their scheduled training.
Additionally, the Learning Management System was developed to increase the efficiency of human capital development. After staff submit an online request for training, the information is then collected to organize class timetables. Registration through application, online evaluation, and online staff database ensure accuracy and comprehensive information that allows for access to the data.
In 2016, the company established the Human Capital Development Roadmap for employees, with the goal of improving the capability of the staff. The staff and executives were categorized into three groups:
The Human Capital Development Roadmap Consists of Four Groups
Leadership Competency Development Program for all leaders, based on the Five Levels of Leadership, namely Responsibility / Relationship / Result / Reproduction / Respect.
Core Competency Development Program which aims to develop management skills, knowledge, and capability with the aim of improving four core competencies for ThaiBev’s staff, namely Communication, Collaboration, Speed, and Result.
Functional Competency Development Program aims to enhance skill sets for staff among all levels and departments such as computer training and language-training courses.
Transformational Development Program is available for all staff. The objective of the program is to equip the employee with resilience when faced with changes in both the organization and in their personal life by suggesting an appropriate mindset and rules of engagement.
All Human Capital Development Programs Are Evaluated with Various Methodologies in Order to Ensure their Effectiveness. The Evaluation Process Has Four Aspects:
Employee Feedback measures the participants’ satisfaction in various aspects in order to improve the program both in terms of content and organization.
Learning Outcome measures the participants’ changes in understanding, attitudes, and aptitude as a result of the training.
Application measures the changes in the staff’s working behavior and career progression as a result of applying their training to their tasks.
Impact on Business measures the staff’s positive effect on business activities and operations. For certain long-term training programs such as the Management Development Program, there are group projects that were designed to represent real work situations, the result of which is used both during and after the program.
One of the “Limitless Opportunities” at ThaiBev can be seen clearly by the fact that employees learn from first hand experience, together with knowledge and expertise sharing between employees from different generations. Additionally, they also have the opportunity to pursue further education through seven master degree scholarships offered. In one year, there are five scholarships in English and Chinese programs from leading institutes in Thailand and two scholarships abroad for countries like the U.S., the U.K., Australia, China and Singapore. This allows employees to broaden their views and increase their knowledge while exchanging experiences, perspectives and ideas with external parties.
Since 2015 the company has granted six scholarships to employees. These comprise three national scholarships, one for a doctorate program in biotechnology at Faculty of Agro-Industry, Kasetsart University, two scholarships for Sasin Chula Engineering Dual MBA and Master of Engineering program, Chulalongkorn University. Three more scholarships for international study are awarded, which include a Master of Business Administration (MBA) at Australian National University (Canberra, Australia), Master of Business Administration (MBA) at University of Edinburgh (Edinburgh, Scotland) and Master of International Financial Analysis at The University of Glasgow (Glasgow, Scotland).
Scholarship recipients can undertake research and dissertations under topics of interest and apply the knowledge and experience they gained from these studies for the benefit of the organization. They can also attend field visits to related organizations which belong to the Company in that country in order to grow their understanding of the diverse nature of the Company’s businesses. They can also share experiences, viewpoints and challenges from their study abroad with other employees in the Company.
Case Study: Leadership Building Program through Coaching Culture
Building ThaiBev Coaching Culture for Achieving Vision 2020 is one of ThaiBev’s leadership journeys. The Company developed the Coaching & Technique for Breakthrough Results Program (CTBR) for executives, to create coaching culture at work, which will contribute to the achievement of ThaiBev’s Vision 2020. One-on-one executive coaching and CTBR workshops were held for “The Oceans” executives. The workshop is aimed to expand for “The Rivers” executives throughout the organization to generate an understanding that the heart of coaching is to empower the staff to reach their full potential and see the opportunities available to them. The staff would then be inspired to utilize their full potential, improve the teamwork, perform at their highest ability, and find success in both their personal lives and career.
Success Indicators in terms of Adapting “Coaching” for the Organization
“After attending “The Oceans” group workshop, the executives began using the coaching techniques in their team management. One of the business executives who was responsible for developing the turnaround plan employed the coaching technique and was able to reduce the costs of doing business, utilize the staff’s full capability, and produce higher quality works. The changes caused the profits to increase threefold despite the economic recession. Another executive who is in charge of sales adapted the coaching technique to the work and doubled the sales numbers very quickly. Additionally, the staff’s loyalty and teamwork grew stronger.”
Interview of Mr. Paisarn Aowsathaporn (Executive Vice President of food business, Oishi Group Public Co., Ltd.) and Ms. Nopamars Vattanaliangjai (Acting Managing Director, HORECA Management Co., Ltd.)
Because of the success demonstrated by various executives that utilized the experiences from the CTBR Program in their team, ThaiBev aims to create a sustainable coaching culture by developing the Train the Trainer Program to establish the executives as the role model of coaching and unlock the full potential of the staff. In 2016, five executives of the Oceans group were chosen to attend the ‘Train the Trainer’ program to become certified trainers to coach ThaiBev employees. In September 2016, the five certified internal trainers held workshops for over 330 “the Rivers” executives. All of “the Rivers” level executives are expected to complete the training by the first half of 2017. The certified internal trainers have reduced the training expense by 80% in comparison to training by external institutes. In 2017, ThaiBev plans to expand the training program to the subsidiaries in Singapore and Malaysia and develop a ‘Train Master Trainer’ Program to help the certified internal trainers create the next generation of leaders as coaches.
Beside the Coaching & Technique for Breakthrough Results Program, ThaiBev developed a continuation program for leaders known as “the Leader’s Daily Role in Engaging People & Talent” Program, which adapts the coaching skills into practical measures that help create business output and improve staff relationships in a continuous manner.
Additionally, in order to create a learning environment and support high potential staff, ThaiBev will host a Community of Practice Program in 2017 for the staff who completed the CTBR Program to provide a platform for executives to share their experiences and learn from each other. The ‘Master Trainer’ or certified internal coach would also participate as co-trainers. The program will contribute to the creation of a sustainable coaching culture and a meaningful result that supports Vision 2020.
Case Study: Work Efficiency Development Program
The 4 Disciplines of Execution
Thai Beverage Logistics Co., Ltd. (TBL) began the 4 Disciplines of Execution on June 2015. The company appointed 12 4DX Implementation Managers and five coaches. In each region, the 4DX was launched in 45 warehouses and two distribution centers and transportation centers. Additionally, the 4DX Contests were launched for Best Result, Best Scoreboard & The Most Effective WIG Meeting. As a result, in 2015, TBL reduced expenses by 1,029,000 baht, through a reduction of fuel costs and damaged products.
In 2016, TBL expanded on this success by covering a network of 68 warehouses and two distribution centers and transportation centers under the “4DX Trim-tab Certification” program. Six trainers were appointed to broaden the result to cover all warehouses, distribution centers, and transportation centers in all provinces, as well as all 3,800 staff. The program also recognized the warehouses that met their monthly goal from logistical costs management, which reduced the costs by 11,336,000 baht per year. Additionally, the program inspired changes in staff behavior to become more consistent with the company’s four disciplines, which would lead to sustainability and achivement of Vision 2020’s goal to create professionalism throughout ThaiBev.
Talent management is one of the key focuses continuously undertaken by ThaiBev and its subsidiaries in order to cope with high growth and to ensure the Company’s status as a stable and sustainable industry leader. The training program, which focuses on outstanding employees, was developed in conjunction with leading institutes in both Thailand and abroad to ensure that the content meets international standards. The focus is on practical action-learning projects that can benefit the growth of the business and networking opportunities for the staff from various departments and subsidiaries, both within and outside of Thailand in order to facilitate cross functional collaboration. The program is also aimed at promoting employee engagement through participation, experience and advice sharing from high-level executives, thus fostering a learning environment for all.
The Rocket Project originated from ThaiBev’s belief and vision for 2030, in which the Company aims to have high-level executives or CEOs of 45 years old or younger by 2030. The initiative aims to serve as a platform for opportunities among the new generation of talented staff who are committed to growing alongside ThaiBev over the next 20 years. The project is another testament on the importance of maintaining talents and following ThaiBev principle of “Limitless Opportunities.” Staff chosen to participate are given opportunities to learn new skills, perform challenging tasks, increase their potential, and improve their leadership skills to prepare for opportunities to become high-level executives in the future.
Many programs are developed for outstanding staff, which cover Global Business Acumen and Mindset and Behavior Development. The training is available for employees of all levels, including:
ThaiBev also supports higher education for high potential employees by providing scholarship programs for Master’s Degree both in Thailand and overseas. Staff who received the funding were able to learn from their experiences working for ThaiBev and bring back their expertise to benefit the company through consultation with the high level executives.
To further embed into ThaiBev management culture the ethos that employees are the Company most important assets, Human Capital has worked closely with line managers to identify and implement the “Top 3 Initiatives” to further enhance employee engagement. Among the key initiatives are the “Power of Clarity” program, a structured talent review and succession planning, and the facilitation of personalized communication via new innovative channels.
The progress of these initiatives is closely monitored and reported to senior executives on a regular basis, as ThaiBev strongly believes that a high rate of employee engagement will lead to the long-term sustainability of ThaiBev itself as well to the employee personal and career fulfillment.
Reflecting on the biggest area for improvement from the previous employee engagement survey, ThaiBev in 2016 embarked on multiple efforts to achieve greater level of clarity and alignment throughout all levels of employees. The central focus was on performance management where ThaiBev increased the evaluation frequency from annual to biannual evaluations.
In order to become a highly efficient organization, and achieve consistent policy and approach among groups and subsidiaries, constant reviews of operational results and outputs are necessary. ThaiBev increased the evaluation frequency from annual to biannual evaluations (mid-year and end of the year). The whole business must share common goals, with various weight given to different departments. The evaluation includes weighting between the performance and behavioral evaluation. The changes in these evaluation criteria and practices have contributed to concrete business outcomes.
Since quality and clarity of the set goal is one of the main enabling factors for success, ThaiBev organized a “Power of Clarity” program. The project aimed to clarify the linkages between the organization goal and staff’s goal on all levels, which would contribute to the achievement of both goals.
Furthermore, the Sustainable Development Indicators and People Development Indicators were introduced as a part of the criteria, weighting 10% each for middle management level and above. This is a reaffirmation of the crucial role that ThaiBev’s staff play in developing and leading the organization to sustainability.
After the regular evaluation, the supervisors and the staff then developed a personal career development goal, which has the main objective of connecting the staff’s career aspiration to the organization goal. This system was constructed to help create sustainable development for both the employee and the organization, as well as to generate an organization goal that is consistent with the staff’s career path.
In 2016, ThaiBev established the Long-term Incentive Plan (LTIP), an additional share-based incentive provided to high-performing employees who make significant contributions to the Company for achieving superior performance. This is particularly important for the Company so that it can continue to perform excellently.
The LTIP is aimed at retaining, motivating, and rewarding employees who continue to work for the long-term benefit of the Company and shareholders, especially with greater dedication and loyalty. The LTIP, in force for a period of 5 years, is designed to improve employees’ long-term performance by giving rewards tied to individual contribution, efficiency enhancement and sustainability development. Through the LTIP, the Company provides an opportunity for employees to participate in the equity of the Company, thereby promoting a stronger sense of identification with its sustained profitability, fostering commitment towards the Company’s success, as well as greater ownership within the organization. The LTIP will help create sustainable value and future benefit to the Company, increasing overall ThaiBev’s competitiveness.
The LTIP commences in performance year 2016 and will continue annually over the next 5 years until 2020. It will help to create incentives for employees to achieve the 2020 targets. Additionally, for each initial share grant, there will be performance conditions linked to future company performance which include both financial and sustainability aspects to further align key employees to the importance of sustainable performance.
In order to carry out sustainable development and business continuation to reach the Vision 2020, ThaiBev constructed succession plans for important positions, beginning with high-level executives. The Company has the policy of internal succession priority. Succession planning began with identifying crucial positions on the organizational strategic plan and constructing a prototype profile for each position. The profile include details on work experiences, job description, responsibility, as well as skills, knowledge, and expertise required for the position. The next step is to evaluate and select staff who best fit the criteria and desired characteristics of the profile, in order to begin a development plan for the chosen staff. The selection process takes into consideration both the performance and the career aspiration of the staff in order to create a sustainable sense of belonging among the staff.
In addition to the aforementioned operation, ThaiBev has developed a Five-Year Human Capital Development Plan in support of the Vision 2020. The Plan adjusts the organization structure and operations to be more consistent with the strategies of the business group and the overall management approach. The Company also understands the importance of investing in information technologies and aims to create uniformity among all subsidiaries, which includes the establishment of the Human Capital Dashboard for monitoring and reporting on the HC’s performance, as well as to provide suggestions on Human Capital development and management for the executives.
ThaiBev cares for its staff from their very first day of work until the very last, and can be considered a family. ThaiBev has prepared a retiree community for all its employees close to retirement to partake in happily, and to create a foundation for relationships between current employees and retirees. ThaiBev helps to train staff to look after each other, the society and economy, and further train elders about part-time work and activities that can be carried out after retirement, such as baking, cooking, weaving, how to administer savings, and carry out investments.
Once an employee reaches retiring age, ThaiBev sees the importance of their accumulated knowledge, skills and abilities, and may consider some who are still fit and desire to work, on a year-by-year basis. The remaining retirees are given pensions that amount to no less than that outlined by the government. In 2016 there are 181 retirees above the age of 60 years who continue to work with ThaiBev.
ThaiBev leads by the heart, and has always upheld the importance of respecting employees and its stakeholders. The Company fully follows the principles of human rights and labor laws and standards in all areas where the business operates. Furthermore, ThaiBev strictly conforms with the Universal Declaration of Human Rights and the International Labour Organization Declaration on Fundamental Principles and Rights at Work. Therefore, ThaiBev has developed a human rights policy, which was formally launched in 2016, in order to reiterate its strong position against discrimination and violations. ThaiBev also took a stand against forced labor and child labor, and supported rights of associations and rights of decent working hours, in order to provide its staff with a work-life balance, as well as occupational health and safety at work.
ThaiBev has communicated all these principles and rights to the staff during the ThaiBev Conference and ThaiBev Expo in order for them to apply these principles in their daily lives and benefit their personal lives and communities. ThaiBev also welcomes opinions from every stakeholder if any case of human rights violation arises. ThaiBev also set a goal to communicate with employees through the Human Capital Department in 2017 and prepare orientation programs for all new staff to ensure that this policy is applied effectively.
Aside from the human rights policy, ThaiBev has incorporated the human rights principle into the Supplier Code of Practice, which was also conveyed during the ThaiBev Expo.
For 2017, ThaiBev is in the consideration process regarding the completion of Human Rights Risk Assessments of pilot sites, which will be completed by 2020.
“Good physical health is a factor supporting economic progress and the social security of the country because it leads to good mental health. Physical and mental fitness enable the individual to effectively serve the nation while refraining from imposing burdens on the nation.”
His Majesty King Bhumibol Adulyadej
22 October 1979
ThaiBev cares for its employees by following the SEP principles of Moderation and Prudence in the workplace, ensuring that worker health and safety is maintained in all situations and for all positions.
ThaiBev believes that no asset is more important than determined and dedicated employees. They are the fundamental force shaping ThaiBev’s success. The Company has therefore developed the Quality, Safety, Health, and Environment Policy (QSHE) as a critical mechanism in improving operational effectiveness and efficiency. ThaiBev fosters constructive, creative mindsets among its management executives, employees, and ThaiBev Group subsidiaries as a way towards practical implementation of safety management, accomplished through clearly defined targets, strategies, projects, and performance monitoring indicators. Starting at ThaiBev and expanding to other ThaiBev business groups (including beer, spirits, and non-alcoholic beverages) and covering relevant business functions and operations. All in all, the highest-level management of each subsidiary must adopt and apply the QSHE policy as a framework in their respective companies.
Furthermore, they are required to define procedures, performance indicators, and monitor and assess performance according to the QSHE Policies of ThaiBev and its subsidiaries.
ThaiBev is currently developing a safety manual to cover activities, starting with designating a safety officer at personnel levels (Chief Officer, Technical Officer, Vocational Officer, and Management Officer), who will be registered with the Provincial Bureau of Labor Protection and Welfare. Once they carry out all safety measures as required by law and international standards the company must prepare a report on the performance of its vocational safety officers to send for government and management to review.
Case Study: Safety Management at Thai Beverage Logistics Co., Ltd. (TBL)
TBL provides safety knowledge-building courses for employees, with courses that are legally required, as well as those that go beyond legal requirements, for instance: training for safety officers; basic first-aid training and patient moving and handling; basic fire and evacuation training; advanced fire training for safety officers and emergency response teams; defensive driving for logistics personnel; and safe driving training for forklift trucks.
TBL does not solely consider employee safety in its operations, but similarly demonstrates concern for any potential impacts that may arise from TBL’s logistics activities on society at large and third-party individuals. Various measures have therefore been designed to protect against any such impacts from occurring, including monitoring the blood alcohol concentration of company drivers prior to carrying out their responsibilities; drug-testing at the workplace; route inspections prior to journeys; specifying driving speed limits; and providing rest areas for drivers to reduce accident risks.
For the long-term, the TBL Management remains committed to building capacity in occupational health and safety by operating in accordance to its QSHE policy – which can also be considered an important risk management mechanism. Furthermore, TBL already develop performance targets and evaluate results at each level, to determine the company’s occupational health, safety, and environmental standard.
ThaiBev encourages its customers and product providers to exercise the key SEP principle of Moderation when consuming or distributing alcoholic beverage products, in the name of consumer health and the health of all.
As a manufacturer and distributor of alcoholic beverages, ThaiBev strives to promote responsible alcoholic-beverage consumption and to continue to raise the awareness for alcohol drinkers. ThaiBev continuously operates towards this mission by encouraging responsible drinking among consumers; this has included constant campaigning. Additionally, ThaiBev places a strong emphasis on ensuring that all marketing communications and services strictly comply with the law.
ThaiBev manufactures and distributes alcoholic beverages as a Self-Regulatory Organization (SRO), adhering to the self-regulatory guidance since 2015. ThaiBev operates through the cooperation of core parties-namely, producers, distributors, representatives from government sectors and non-profit organizations-to achieve alignment with the Code of Conduct in the administration of manufacturing and distributing alcoholic beverages, in order to determine explicit operational guidelines for related parties and also to make certain of their accountability to convey quality marketing communications and encourage responsible consumption.
In the year 2016, in order to encourage responsible consumption, ThaiBev launched the Serve Responsibly Project, which is one of the recognized procedures under the Self-Regulation Organization (SRO). This project aims to increase the accountability of providers when they serve alcoholic beverages to consumers. The primary objective of the project is to minimize the risk of accidents resulting from excess alcoholic consumption, which may cause harm to the life or property of the consumer.
In order to fulfill this goal, a training workshop called “Serve Responsibly” has been arranged for alcoholic-beverage providers, firstly targeting ThaiBev’s main alliances, such as hotel and premium restaurant runners. To this end, ThaiBev invited them to enroll their employees who serve alcohol such as a food and beverage managers or bar managers to the workshop.
The workshop highlights activities that encourage service providers to become more responsible alcoholic-beverages providers. The workshop is comprised of 3 main parts, namely:
1. Theoretical knowledge which consists of:
1.1 Knowledge of the manufacturing process and active ingredients for each alcoholic product.
1.2 Knowledge of the laws and regulations as stipulated in the Alcoholic Beverage Control Act. Emphasis on alcoholic-beverage sale and
consumption control, including direct experiences related from law-enforcement officers, i.e., the police.
1.3 Medical knowledge on the proper amount of alcohol consumption for the human body, including the effects of over-consumption.
1.4 Safety knowledge for minimizing the risks of consuming alcoholic beverages.
2. “DernMaoMun” (Walking drunk) Workshop
This part features a core tool called “Drunk Buster Goggles,” also known as eyeglasses that simulate the experience of intoxication. These glasses replicate the visual ability, and reactions, of an intoxicated person. Trainees will be asked to wear the “Drunk Buster Goggles” and participate in activities together. The activity’s objective is to acknowledge the relative body states of pre-and post-alcoholic consumption, in order to distinguish among customers affected by alcohol; for example, by demonstrating a lack of ability to walk straight or delayed reactions to situations, etc.
Additionally, the activity aims to demonstrate the effects resulting from over-consumption of alcohol such as a family-relationship breakdown, lack of self-control, violence, and harm to one’s life.
3. Viral Video Production
This part’s objective is to train the subconscious of the alcoholic-beverages providers by producing a short video about a regular customer who gradually tends to consume more alcohol, resulting in reduced self-control and decision-making ability. The story emphasizes that the person best positioned to help this customer is not the customer him/herself, nor family at home, nor a companion, but the restaurant or bar staff, who could help this customer to drink reasonably and prevent him/her from harmful situations. This message should be integrated as a daily work principle.
“Serve Responsibly” is a three-year project, featuring three training workshops each year, commencing in December 2016. As previously mentioned, in the first year, the project will target hotel and premium restaurant runners in Bangkok. In the next year, the project will expand to the Bangkok perimeter provinces and upcountry provinces.
The key performance indicator of this project is that in three years, there must be at least 150 hotel and premium restaurant runners participating, with not less than 300 trainees. Additionally, there will be a yearly performance review involving a discussion with trainees who have completed the course, evaluating them each year. ThaiBev strongly expects that once trainees have accomplished the “Serve Responsibly” course, they will not only acquire theoretical knowledge and an understanding of responsible service, but possess the qualities of conscientious service staff. As a matter of fact, unexpected accidents from over-consumption of alcohol would be reduced if all service providers emphasized accountability in service towards consumers, resulting in the advancement of ThaiBev as a true Self-Regulatory Organization.
ThaiBev continually places emphasis on responsible consumption for road safety, because the Company is aware that one of the key factors of loss and harm in traffic accidents is irresponsible, alcohol-influenced behavior, which also poses a burden on Thai society, economically and socially. Therefore, creative and consistent communication through all media has been arranged by ThaiBev to fulfill its mission of encouraging Responsible Consumption, by collaborating with government and private sectors on the campaigns.
Since ThaiBev has realized the great significance of road safety, media on the road-namely, advertisements on public transportation-represent an effective channel for reminding commuters to practice discipline on the roads. ThaiBev has selected media on the back of public-service vehicles-i.e., taxis-to be one of the communication channels. Since taxis do not operate on fixed routes, the opportunity to see them is more frequent and the audience is diversified. Taxi ads have been executed for ThaiBev’s road safety campaign for nine years, since 2007. Currently, 300 taxis with its campaign advertisements are operating across the Bangkok metropolitan region.
ThaiBev strictly complies with the law and is enthusiastic to cooperate with other main operators. ThaiBev joined TABBA in sponsoring a seminar with the subject of “Alcohol Control Act: Lessons from the Media and Business Sectors” on 18 August 2016. This seminar’s objective was to understand regulations, find solutions, and request the government sector to provide clearer guidelines for alcoholic-beverage advertisements, in order to build a better understanding between the government and private sector. The seminar was attended by 100 people.
ThaiBev applies Knowledge and Virtue to innovate a diversity of products in the name of consumer health, safety, and wellbeing.
Concern for consumer health, safety, and wellbeing is at the heart of food and beverage companies. Nowadays, consumers pay great attention to the nutritional value, hygiene, and safety of their foods and drinks. Even though current manufacturing technology has progressed significantly, breaches of food safety are still being reported globally. On the one hand, these reports increase consumer awareness of food safety; on the other hand, they also reduce their confidence in food manufacturing and distribution processes. Consumers have become diligent when it comes to seeking safe and high quality products so manufacturers and distributors must pay greater attention to these issues. ThaiBev has set “Health and Nutrition Policy” to be consistent with consumer needs and also put the importance on quality and safety in products
Health and nutrition concerns continue to increase in importance. The world is combating non-communicable diseases (NCDs) which affect people in every corner of the world. It is one of the major health and development challenges of the 21st century. The three main diseases – namely hypertension, hyperlipidemia, and diabetes – are among the most common NCDs in Thailand and globally. Statistics from the World Health Organization indicate that Thailand is now facing the huge burden of these NCDs, as 70% of fatalities in the country are due to NCDs. This represents a major threat to human health, wellbeing, and development locally and globally. It is also now one of the Sustainable Development Goals to ensure healthy lives and to promote wellbeing for all at all ages.
For ThaiBev, the health of consumers directly impacts the health and success of the business. Lack of good nutrition is one of the reasons for non-communicable diseases. This is why ThaiBev has been taking proactive steps to ensure the health, safety, and wellbeing of consumers. ThaiBev is committed to delivering high quality and safe products while also investing in the research and development of healthy products, communicating with consumers transparently about the nutritional content of its products, and promoting healthy lifestyles.
To meet required consumer health and safety standards, ThaiBev has placed significant focus on product safety, from the manufacturing process to raw material sourcing. ThaiBev has a strict quality control policy and constantly reviews production standards, in terms of consumer safety, hygiene, and management, to meet an international level of excellence. The non-alcoholic beverage products have been certified with various standards, including:
Additionally, all of ThaiBev’s non-alcoholic beverage production sites such as Chang Drinking Water, Crystal Drinking Water, Oishi Green Tea and Oishi Chakulza, Jub Jai, 100 Plus, and est are certified by the internationally recognized standards as above-mentioned. This is especially so for Chang Drinking Water and Crystal Drinking Water, which are certified under the NSF (National Sanitation Foundation), which certified water production under the U.S. FDA (United States Food and Drug Administration) and also for Oishi Green Tea UHT 250 ml., for which production is certified under the FSSC 22000 (Food Safety System Certification 22000).
The safety of ThaiBev’s products and the integrity of the raw materials that are the basis of high quality products are significant to ThaiBev. The Company is committed to not using genetically-modified organisms (GMOs) in its products, and has a policy in place that clearly communicates the Company’s position on GMOs use. However, if GMOs are used in any instance, the Company will directly label all products distributing in all countries, in adherence to the Ministry of Agriculture and Cooperatives’ regulations on the usage and cultivation of GMOs materials. ThaiBev also requires suppliers to formally declare if there is any GMOs content in their materials, and regularly conduct tests on raw agricultural materials to control the quality.
It is evident that ThaiBev places a strong emphasis on the quality of all products. The Company is determined to maintain these standards to ensure both domestic and international consumers’ confidence when it comes to their decision to purchase ThaiBev products.
In addition, ThaiBev remains open to input and feedback from the public in order to ensure long-term consumer trader and partner satisfaction. The Company has established various channels for consumer communications such as mail, e-mail, ThaiBev Consumer Call Center, a Facebook fan page, and a direct line. These communication channels allow consumers to easily inquire for information, lodge complaints, and submit comments. The Consumer Call Center was established to gather and analyze data, as well as to resolve issues and coordinate with relevant parties to provide the fastest response to consumers. ThaiBev’s aim is to fulfil consumer necessities in the fastest way possible, alongside improving satisfaction of both partners and consumers, and to sustainably develop the relationship between the consumer and ThaiBev’s products.
ThaiBev also receives consumers’ opinions through various market research efforts on consumers’ preferences in order to meet the various needs that correspond to their diverse lifestyles, and aims to continuously improve consumer satisfaction. In order for ThaiBev to fulfil the various needs of its customers, who also have varied lifestyles, ThaiBev increased the variety of market products, for example, creating a low-sugar product for those who are more health-oriented.
ThaiBev has set an ambitious goal that by 2020 two thirds of the volume of non-alcoholic products sold must be healthy products. Over the past few years, ThaiBev has been focusing on developing new healthier products using a science-based approach. As a result of ThaiBev’s focus on developing sugar-free and low-sugar products in the non-alcoholic market segment, from January to September 2016, 61% of the total non-alcoholic products sold were healthy products.
Currently, approximately 28% of ready-to-drink tea products under the Oishi and Jub Jai brands are classified as low-sugar. Oishi is the first ready-to-drink tea manufacturer in Thailand which its products “Oishi Kabusecha No Sugar”, “Oishi Kabusecha Low Sugar”, “Oishi Green Tea Original”, and “Oishi Green Tea Sugar Free” were certified “Healthier Choice” from The Institute of Nutrition, Mahidol University. For the soft drink segment, more than 27% of products have been oriented towards health-conscious consumers. The main product is “est free” which is a sugar-free and zero-calorie soft drink, for active lifestyles under the brand “100 Plus”. In 2016, est free and 100 Plus (all favors) were certified approval to use the healthier choice label on both the products and on all advertisements as well.
ThaiBev also understands the importance of communications and consumer awareness on healthy products as well as their nutritional benefits. The Company is committed to informing consumers transparently about the nutritional content of the products in compliance with the laws and regulations on nutritional labelling.