ThaiBev Sustainability

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PACKAGING & Circular Economy

Packaging
Commitment

Packaging
Guideline

Packaging
Materials

Packaging & Circular
Economy

COLLABORATION
with external parties to tackle packaging waste

The world increasingly recognizes the importance of maximizing resource efficiency and transitioning to a circular economy. Applying circular economy principles throughout its value chain, ThaiBev has developed a closed-loop packaging collection system to create new recycling opportunities post-consumption, as another way of increasing resource efficiency and reducing waste, especially with primary packaging materials such as glass, paper, aluminum cans, and PET bottles. Thai Beverage Recycle (TBR), a ThaiBev subsidiary, is dedicated to managing post-consumption packaging.

ThaiBev aims to achieve packaging circularity, taking into account all environmental as well as social impacts. The company integrates the circular economy concept into its entire packaging value chain, from design stage to post-consumption packaging management. The key elements of ThaiBev’s management approach towards packaging circularity are:

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

ThaiBev's Packaging Value Chain

Towards 2025 and Beyond

MANAGEMENT INCENTIVE AND COMPENSATION

Management Level	Type of Incentive	Incentivized KPIs	Detail
Chief Supply Chain Management and Executive Officers	Monetary	Waste management and circular economy	ThaiBev sets Corporate KPIs that reflect our CEO, executive, and employee compensation. ThaiBev’s Corporate KPIs relating to Waste Management and circular economy consisting of retrieval target for all main packaging. We define and categorize the criteria for achieving Corporate KPIs into 5-level. Compensation and bonuses will be allocated to relevant executives and employees, with related targets to Retrieve 100% of glass packaging and 250% of paper packaging sold in Thailand by 2025 Retrieve 100% of aluminum can and PET bottles sold in Thailand by 2030
Business Unit Managers	Monetary	Waste management and circular economy	ThaiBev sets Corporate KPIs that reflect our CEO, executive, and employee compensation. ThaiBev’s Corporate KPIs relating to Waste Management and circular economy consisting of retrieval target for all main packaging. We define and categorize the criteria for achieving Corporate KPIs into 5-level. Compensation and bonuses will be allocated to relevant executives and employees, with related targets to Retrieve 100% of glass packaging and 250% of paper packaging sold in Thailand by 2025 Retrieve 100% of aluminum can and PET bottles sold in Thailand by 2030

Reduced raw materials in aluminum can production by

600 tonnes

compared to 2020 as a base year

RECYCLABLE PACKAGING

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

Phase out Single-use Plastic

KFC Green Store

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

KFC Vibhavadi Branch, Bangkok, is a pilot branch to encourage the customers to save the earth by reducing the single-use plastic usage. This branch has switched the packaging to materials with minimum plastic, e.g., new knives and forks with 20% less plastic, switching to water-based coat instead of PE film-coated soda cups, biodegradable PLA straws, paper sauce cups, and thicker plastic bags. Moreover, solar panels are installed on its rooftop to generate the power used in the restaurant. This reduces the use of electricity by 20%. This branch also has air-purification system installed to treat the air before discharging.

At present, the store also joins hands with IRPC to encourage customers for sorting the trashes (knives, forks, spoons, and mashed potato cups) and recycle them to into other products.

New experience at this first KFC Green Store expects to see customers’ cooperation on post-consumer waste sorting or recycle process that align with Circular Economy.

Increase Reusable Packaging

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

Click for more information on Packaging Commitment and Associated Programs