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ThaiBev Food Loss and Waste Management

ThaiBev
Food Loss and Waste
According to the United Nations, at least one-third of all food, by weight, is lost or wasted. Globally, this has significant environmental impacts and is a factor driving climate change, since waste that decomposes in landfills generates methane, a potent greenhouse gas. The UN Environment Programme (UNEP) has estimated that 8-10% of global greenhouse gas emissions are associated with unconsumed food. To help address this problem, ThaiBev is working to reduce its food loss and waste inventories and ensure that resources are used more efficiently to minimize their environmental impacts.

ThaiBev is fully aware of the importance of food loss and waste occurred in our production processes and at our various retails all over the world, thus we are closely monitoring our loss and waste and carefully working to ensure that our food loss and waste are managed properly.
ThaiBev has set a target to
reduce food loss and waste to landfill to zero by 2030
To achieve this, ThaiBev follows the guidance of the United Nations Environment Programme’s Mapping and Measuring Food and Drink Waste module, which applies the Food and Drink Material Hierarchy from Prevention, Optimization, Recycling, Recovery to Disposal. There are many projects and methods implemented to reduce food loss and waste and there also are new upcoming projects aiming to achieve the 2030 target. Moreover, the some of the currently ongoing projects is planned to be expanded.
Programs established to
measure food loss and waste
ThaiBev uses many methods to measure food loss and waste to ensure as much accuracy as possible.

At the production site, food loss occurred in production processes will be captured, collected, directly weighed, and then stored together to be sold to different partners depending on the type of waste, while some part of it that cannot be sold or utilized will then be collected and properly stored to dispose. Also, weight difference calculation between full truck load and empty truck load is implemented at the production site to record the weight of waste (food loss) if necessary.

At a retail level, or at restaurants, food waste is collected and manually weighed at the back of each restaurant as well as using restaurants’ inventory systems as a proxy data to calculate and/or estimate the amount of food waste created on a daily basis. Food waste that is good enough to be used as a resource for various purposes will be separated from other food waste, while the waste that cannot be used will usually be disposed at the end of each day.
Programs aimed at
using food loss and waste for alternative uses
The most important thing in food loss and waste management is to find possibilities of using food loss and waste for various purposes, which also guarantees that those food loss and waste will not end up in a landfill. ThaiBev has many programs to utilize food loss and waste for various benefits.

ThaiBev also views the issue of food loss and waste as a financial opportunity. As a good example of financial benefits from food loss and waste management, the Food Group has generated total revenue of 21,790,185 THB from various types of food loss and waste in 2021.

In 2021, the amount of food loss and waste used for alternative purposes is 1,532.93 metric tonnes. Its destinations can be broken down as follows:
  • Food loss and waste used for animal feed – 538.78 metric tonnes
  • Food loss and waste used for fertilizer – 30.38 metric tonnes
  • Food loss and waste used for biofuel – 947.74 metric tonnes
  • Food loss and waste sold as by products - 0.4 metric tonnes
  • Food loss and waste donated – 15.63 metric tonnes

FLW Destinations 2021
kg.
Animal Feed Fertilizer Biofuel By products / Sold to employees Food Donation Disposal
Wasted/expired/unqualified products from manufacturing processes 15720 - - - - -
Food ingredients 369490 - - - - 18343.61
Fish scraps 153570 - - - - -
Vegetable scraps - 30378 - 250 - -
Processed food - - - 148.56 - -
Used vegetable oil - - 947744.14 - - -
Restaurant waste - - - - 15628.61 996931.50
Total 538,780.00 30,378.00 947,744.14 398.56 15,628.61 1,015,275.11
Total FLW 2,548.20        
FLW for alternative purposes 1,532.93        
FLW discarded 1,015.28        
Food loss and waste 2021
volume broken down by category
FLW Volume 2021

Wasted/expired/unqualified products from manufacturing processes
15,720 kg.

Vegetable scraps
30,628 kg.

Restaurant waste
1,015,560.11 kg.

Mixed food ingredients
387,833.61 kg.

Processed food
148.56 kg.

Fish scraps
153,570 kg.

Used vegetable oil
947,744.14 kg.
Total : 2,548,204.42
Programs to
reduce the total volume of food loss and waste
As ThaiBev is one of the biggest food and beverage producers in Thailand, it is unavoidable that there will be waste occurred in production processes. However, ThaiBev is working efficiently to reduce the number of food loss and waste ending up in landfills as much as possible. All four business units of ThaiBev, namely Beer, Spirits, Non-alcoholic beverage, and Food, are aware of their food loss and waste and put their efforts into reducing and finding ways to use food loss and waste as resources. For Beer, Spirits, and Non-alcoholic beverage business unit, food loss is now considered by-products that can be sold to create revenue, and to ensure that it will be used as resources, resulted in zero food loss and waste to landfill. The Food group is now managing their food loss and waste the best that it currently can. Food group’s food loss and waste management working team was formed in late 2020 to directly supervise and manage food loss and waste both from the production site and retails. The team consists of directors and managers of restaurant and factory to thoroughly work across the Food group to achieve ThaiBev’s 2030 target to have zero food loss and waste to landfill.

There are ongoing programs that ThaiBev have implemented to reduce the volume of food loss and waste.

Example of programs to reduce food loss and waste
Raw material purchasing forecast
ThaiBev manages food ingredient purchasing practices by analyzing historical sales data, market situation, and seasonal events over a certain period of time to predict the proper amount of food ingredients and raw materials to purchase to avoid over-purchasing. Moreover, purchasing processes are cautiously planned to minimize the number of trips needed to supply materials and ingredients. This will indirectly lower the amount of carbon footprint as well. Also, the Food group is trying to extend its product shelve life while maintain product quality to ensure that their products will all be used without being thrown away. OISHI and KFC also have integration system in place where it tracks the amount of food ingredients and raw materials in the system from which data can be used to help with purchasing decisions in the future to avoid stock excess.
Inventory management
There are standards in place to ensure proper management on raw materials and food ingredients. For example, on raw material receiving from suppliers, the quality of raw material will be carefully checked before getting handed over to ThaiBev. Raw materials and food ingredients which do not pass the standard will not be accepted to reduce the chance to waste the materials without them being used. Accepted items will then be properly stored depending on the need of each item to ensure that they will not go to waste.
Zero Food Waste Challenge
Shabushi (Shabu Buffet restaurant chain) created the “Kin Mod Kleang” challenge for its customers. “Kin Mod Kleang” means “Eat it all so there’s nothing left”. Customers who decide to participate in this activity will be encouraged with an incentive to completely eat up the food they brought. This project not only encourages customers to consume all the food that they bring to the table but also makes them aware of the proper amount of food for each time of consumption without oversupplying themselves as Shabushi is an all-you-can-eat type of restaurant where customers are allowed to get as much food as they need, which sometimes the food ends up being brought too much.
Collaboration with partners is also an essential part that makes food loss and waste management throughout ThaiBev group efficient. ThaiBev has been collaborating with various partners to reduce food loss and waste volume as well as seek possibilities to use food loss and waste for alternative purposes.
Example of collaborative programs with partners
Salmon scraps selling with FEED Addition
Oishi Food Service factory sells its salmon scraps from production process to utilized as animal feed.

Vegetable and food scraps donation
Oishi Food Service factory donates its food scraps and some of its vegetable scraps to the local communities nearby to be used as animal feed and fertilizers.

Food donation with SOS foundation
Shabushi, one of the brands under OISHI group, has been donating its food surplus from some restaurant locations to SOS foundation since FY2021. The project is planned to expand to other brands under OISHI group and also KFC. The OISHI Group has signed a contract with SOS foundation to ensure that food donation will follow standards that guarantees safety for the receivers.

KFC Harvest and Colonel’s kitchen program
Alongside OISHI Group, KFC provides its food surplus with perfect consumption condition to vocational institutes and shelters for people living in disadvantage circumstances in Thailand. Moreover, KFC has planned to collaborate with SOS foundation to be another way to donate its food surplus for communities. In 2021, KFC has donated 8,454.61 kilograms of high-quality food to shelters. They have also planned to expand their collaboration to more shelters in 2022.

Mx Cakes&Bakery with Yindii
Mx Cakes&Bakery has collaborated with Yindii, one of the promising food rescuers in Thailand, to develop a pilot project to rescue the unsold cakes and bakery that are still in a good quality. The cakes and bakery will then be put in a surprise box and sold with a discount. In 2021, the project created a revenue of 28,200 THB for Mx Cakes and Bakery.
Future collaborative projects
In late 2021, The Food group has started its collaboration with FEED Addition, ThaiBev Recycle (TBR), and HAVI to plan together the food loss and waste management project. This project will watch over all of the food loss and waste that the food group has as well as packaging waste and will holistically manage them starting from the production site to the end at the retail level to ensure that food loss and waste will not go to landfill. Moreover, instead of donating all of the food loss and waste, the food group is trying to create income out of its food loss and waste as well. This will be a collaborative work between the Food group and various stakeholders to find potential ways to earn revenues from food loss and waste that are supposed to be thrown away.
Food Loss and Waste Intensity
Intensity (kg/mil THB)
2018 2019 2020 2021
n/a 19.65 12.40 12.89
The method of food loss and waste intensity calculation is food loss and waste weight by revenue
Data Coverage
81.4%
The 2021 coverage is 81.4% of ThaiBev revenues in 2021, which include Thailand and Overseas revenues excluding Socialist Republic of Vietnam.