ThaiBev Sustainability

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Packaging
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Packaging & Circular
Economy

COLLABORATION
with external parties to tackle packaging waste

ThaiBev adheres to the circular economy principle and considers all environmental and social impacts arising from its packaging, from design to post-consumption packaging management. To help achieve more sustainable packaging management, ThaiBev focuses on five actions:

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 collaborates with suppliers to design and develop packaging that minimizes the use of natural resources while maintaining quality and functionality.

ThaiBev‘s operations in Thailand has successfully downgauged aluminum cans, reducing aluminum usage by 2,583 tonnes compared to 2020. By 2030, we aim to further reduce raw material use for aluminum can production by 2,700 tonnes compared to 2020. Other packaging reduction initiatives include reducing PET bottle weight, reducing the thickness of LDPE plastic film, adopting lightweight NNPB (Narrow Neck Press & Blow) glass bottles, and introducing Green Partitions with less paper and simplified assembly.
SABECO has successfully downgauged aluminum coil thickness from 0.245 to 0.240 mm. This innovation, developed in collaboration with SABECO’s suppliers, not only reduces costs for both parties but also demonstrates a commitment to reducing GHG emissions while maintaining product quality.
F&N has made a group-wide commitment to reducing the weight of packaging materials. This involves decreasing the volume of materials used relative to product size. Wherever feasible, F&N reduces the use of less environmentally friendly materials, such as transitioning product labels and flexible packaging to PET and laminated paper alternatives.

Packaging reduction initiatives in 2024

The Beer Product Group in Thailand has initiated a project to improve corrugated cartons and inserts by reducing paper usage. The project also aims to optimize the gauge of aluminum cans and lids, which is expected to reduce aluminum usage by 2.51 tonnes per year and LDPE film usage by 1.33 tonnes per year.

The Spirits Product Group in Thailand has a project to change the type of capseal from PVC to PET on its Meridian 700 ml product, and to reuse good-condition inserts, instead of new inserts, on the 330 and 625 ml sizes.

Sermsuk Brand has cut down the thickness of aluminum cans, decreased the width and length of paper sheets for Crystal drinking water, and reduced the amount of plastic used for carbonated soft drinks under the est brand.

Oishi Brand is experimenting with using perforated shrink sleeves that are easy to tear off, a tethered cap that remains attached to the bottle after consumption, as well as changing from PVC to PET labels to increase recycling feasibility. In terms of packaging reduction, Oishi has also cut down the amount of paper fiber used and reducing the weight of HDPE plastic caps 0.15 g per cap

In the Food Product Group, Oishi has redesigned and reduced the plastic bowls and trays used for food delivery while maintaining product quality and freshness. Oishi has also implemented a Relock design for its food packaging boxes and is the first company to use this type of packaging, which further reduces the use of plastic and straps.

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 “KFC Green Store." This store encourages customers to participate in environmental conservation efforts, aligning with KFC’s principle of “Done the Right Way." This principle is practiced through quality ingredients, fresh and clean food, and our determination to save the earth. The concept of “KFC Fast Good” is to do good and be sustainable for the world.

Currently, there are two KFC Green Store branches: Vibhavadi Branch, Bangkok, and Depot by VANACHAI, Chachoengsao. KFC Green Store has switched the packaging to materials with minimum plastic, e.g., new knives and forks with 20% less plastic, switching to a water-based coating instead of PE film-coated soda cups and paper sauce cups. Moreover, solar panels are installed on its rooftop to generate the power used in the restaurant. This reduces the use of electricity by 20%. The store also has an air-purification system installed to treat the air before discharging, and this initiative includes EleX by EGAT charging stations for EV users, marking a step forward in advancing eco-friendly efforts in line with the Thai Beverage Policy.

In 2024, the KFC Green Store, operating under the Zero Waste concept, used recycled materials for design and decor. The KFC Green Store launched a new campaign to encourage customers to enjoy their chicken by using their hands instead of plastic cutlery, aligning with Colonel Harland David Sanders original concept. This reduces plastic usage by an average of 40,000 pieces per year. And the stores also join hands with IRPC to encourage customers to sort the trash (knives, forks, spoons, and mashed potato cups) and recycle it into other products. The new experience at KFC Green Store expects to see customers’ cooperation in post-consumer waste sorting or recycling processes that align with the circular economy.

In 2024, KFC transitioned its packaging from single-use polypropylene (PP) plastic to paper-based materials as part of its commitment to sustainability. This initiative aims to reduce plastic waste and minimize the environmental impact of its operations by adopting more eco-friendly and recyclable packaging solutions.

Compostable Plastic Packaging

In addition, ThaiBev’s food business, focusing mainly on restaurants, has adopted compostable plastic straws made from PP with ECO REVO to further reduce environmental impact. These straws are designed to break down through natural biological processes in industrial composting facilities, aligning with the company’s commitment to sustainable packaging. This shift not only helps reduce single-use plastic waste but also enhances the brand's environmental image and meets the expectations of eco-conscious consumers.

A crucial part of closed-loop packaging management is to collect and sort post-consumption packaging. Thai Beverage Recycle Co., Ltd. (TBR), a subsidiary of ThaiBev, is task with ThaiBev’s post-consumption packaging collected via local business partners throughout the country and sorts them at company-owned sorting facilities. Main packaging materials retrieved by TBR include glass bottles, cullet, aluminium cans, PET bottles, and corrugated cartons.

TBR Recycling Facility in Nakon Ratchasima (left) and Ayutthaya (right)

In FY2024, TBR expanded into the HDPE collection business and retrieved 332 tonnes of post-consumption HDPE bottles for recycling.

Bring Back-Recycle

The Bring Back–Recycle project in Thailand aims to promote post-consumption packaging management by consumers, harnessing the slogan “Taking care of the environment is everyone’s responsibility. Let’s start with us!” We focus on building awareness, encouraging participation, and generating income to create tangible sustainable social and environmental benefits. Over the past five years, the project has organized activities, training sessions, and waste separation points at over 200 events, collaborating with various organizations to manage waste and recover packaging. These efforts have included schools, universities, and office buildings, covering more than 34 locations across Bangkok.

In 2024, more than 194 tonnes of post-consumption packaging were collected for recycling. Among these were 1.82 million PET bottles that were upcycled into 47,894 green rPET blankets for donation in the “ThaiBev Unites to Fight the Cold” project.

Under the Bring Back–Recycle program, TBR has also collaborated with multiple partners on the following initiatives:

Continued cooperation with Aluminium Loop program resulted in the collection of over 17 tonnes of aluminum cans and other post-consumption packaging from partners like Big C Supercenter, the Pollution Control Department, and marathon events such as “We Can Run Fund for Legs” and “UD Town Songkran Festival 2024”. This contributed 371,208.39 Baht to the “Recycle for Life” project for the Prostheses Foundation of HRH the Princess Mother.

For five years in a row, TBR has installed recycling stations at the Buriram Marathon and Suphanburi Mueangnhoe Marathon, two of the largest events in Thailand. This year, the project collected the equivalent of 23,442 PET bottles.

TBR partnered with TIPMSE and Eco-Friendly Thai Co., Ltd. to recycle approximately 65,000 UHT cartons, which are difficult to recycle. The paper was separated for reuse as raw material, and other components were processed into new materials, such as, wood substitutes and bricks. This effort sought to engage consumers such as students, employees, and interested organizations.

This year, the Bring Back–Recycle project also became part of Sustainability Expo’s waste management initiative, starting at the Chalermlap Police Flat community as the first pilot location, with plans to expand to other communities in the future. TBR also manages Sustainability Expo’s waste separation and post-consumption packaging management at its nationwide events.

In order to ensure efficient closed-loop post-consumption packaging management, TBR sends sorted post-consumption packaging directly to intended users, such as manufacturers and recyclers.

Glass contributes to the highest volume of key packaging material consumption at ThaiBev. It is used to package various products, including white spirits, blended spirits, whisky, brandy, beer, carbonated soft drink, drinking water, etc. In FY2024, ThaiBev reused over 1,431 million glass bottles, and collected 253,888 tonnes of cullet to be recycled. The amount collected is equivalent to 97 percent of returnable glass bottle products sold by the company in Thailand.

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.

SABECO applies the concept of returnable packaging by exchanging bottles and crates and nearly 100% of glass bottles are returned to the production process. SABECO has also made efforts to downgauge of aluminum cans and reduce the weight of corrugated cartons.

Recyclable Packaging

“est Cola” is advancing our mission of sustainable packaging through the campaign “Change the Bottle for a Better World”. The campaign encourages Gen Z community to adopt environmentally friendly practices through active recycling behavior, starting with plastic bottles. “est Cola” has introduced 100% recycled polyethylene terephthalate (rPET) bottles for its 515 ml packaging, in order to reduce plastic waste and promote environmental responsibility among consumers. The initiative was officially launched at Sustainability Expo 2024, the largest sustainability event in ASEAN, at Queen Sirikit National Convention Center on 6 October 2024.

The Beer Product Group in Thailand has developed a new product, Chang Unpasteurized Beer, the first product in Thailand to use recyclable aluminum bottle with a screw cap. The aluminum bottle boasts several advantages: it cools quickly, is lightweight, and contains up to 76% recycled content. Additionally, every part of it is 100% recyclable and can be endlessly remade into new aluminum cans, ensuring that the used bottles do not become waste that impacts the environment.
The Spirits Product Group in Thailand has launched a project to switch the 330 ml bottles of white spirit to lightweight glass bottles using the Narrow Neck Press & Blow (NNPB) process. This glass-forming technique results in lighter bottles. Additionally, the Green Partition design has been implemented by redesigning the paper partition into single piece which can be folded into shape. This reduces the paper usage in packaging, makes it easier for assembling, and improves transportation efficiency.
Oishi Food Operation is developing mono-layer packaging to replace multi-layer packaging for some products in Oishi Eato, a Japanese-style ready-to-eat meal, helping to reduce non-recyclable plastic. Oishi has also redesigned and reduced the plastic bowl and tray used for its food delivery service while maintaining the same quality and food freshness. Oishi’s packaging supplier has implemented Relock design for food packaging boxes, and Oishi is the first company to use this type of packaging, which also reduces the use of plastic and straps.

Oishi Green Tea’s “tethered cap” is a newly designed, eco-friendly cap that stays attached to the bottle neck when opened, promoting easier recycling and reducing littering. This design also minimizes printing on the cap and reduces cleaning steps before recycling. The new design is in compliance with European Union Directive 2019/904, which mandates that plastic caps for beverage containers of up to 3 liters must remain attached to the bottle neck. Additionally, Oishi uses paper packaging from partners certified by the Program for the Endorsement of Forest Certification (PEFC), ensuring sustainable forest management and resource use.

Aluminum Can Closed-Loop Recycling

To further ThaiBev’s commitment to ensuring that recyclable packaging is actually recycled, TBR signed a Memorandum of Understanding (MOU) on “Transparency of Aluminum Can Closed-Loop Recycling”, which aims to establish a fully integrated recycling system for used aluminum cans in Thailand through supply chain collaboration. The objectives are to improve the efficiency of the recycling process, the recycling rate, and the proportion of recycled content in aluminum cans. An “Aluminum Loop” symbol was designed to create awareness among consumers, and is displayed on many product brands including ThaiBev’s popular soft drink products: Chakulza and est cola. The campaign is an example of how manufacturers and brand owners can collaborate with partners along the supply chain, and influence the demand for recycled packaging, thus boosting the recycling rate.

More information on aluminium loop
https://www.aluminiumloop.com

PERCENTAGE OF GLASS PACKAGING RETRIEVED

PERCENTAGE OF PAPER PACKAGING RETRIEVED

ThaiBev established BevTech Co., Ltd. (BevTech) as a Research and Development centre with one branch, the Packaging Business, that develops sustainable packaging and alternatives.

BevTech also researches machines and robotics to facilitate automation in ThaiBev’s production facilities. The Packaging Business is responsible for end-to end packaging management, from conceptual design, materials selection to packaging production process development to minimize both environmental and social impacts.

The following factors are considered in BevTech’s packaging development:

Specification
Law and Regulation
Material Availability
Cost and Benefit
Environmental Impacts
Energy Consumption
Safety

BevTech’s major achievement in recent years has been the implementation of an automated bottle-sorting conveyor belt and the introduction of artificial intelligence (AI) bottle-sorting technology through collaboration with CMKL University, a top-tier research institute established as a collaboration between King Mongkut’s Institute of Technology Ladkrabang (KMITL) and Carnegie Mellon University (CMU), world's leading university on AI technology.

ThaiBev drives sustainable packaging management through a holistic approach, engaging stakeholders across our value chain, including suppliers, private-sector partners, public organizations, and end consumers. ThaiBev is a key partner of the Thailand Institute of Packaging and Recycling Management for a Sustainable Environment (“TIPMSE”) under the Federation of Thai Industries (FTI), with our executives serving as TIPMSE’s President and Vice President. Additionally, as a co-founder of the Thailand Supply Chain Network (“TSCN”), ThaiBev collaborates to advance sustainable packaging practices. Moreover, Since 2019, TBR has championed post-consumption recycling through its Bring Back–Recycle program, featuring campaigns, waste management training, and drop points at schools, offices, and events. These efforts underscore our commitment to fostering a circular economy and advancing long-term sustainability.

Extended Producer Responsibility (EPR) across Markets
ThaiBev’s operations in Thailand has actively collaborated with Thailand Institute of Packaging and Recycling Management for a Sustainable Environment (TIPMSE) under the Federation of Thai Industries (FTI) in the development of the Extended Producer Responsibility (EPR) scheme in Thailand. Under the EPR concept, producers are responsible for the environmental impacts of their products and packaging throughout their entire life cycle, including the post-consumption stage.

In 2024, TIPMSE engaged with 149 parties to lay the foundation for post-consumption packaging to be returned to the recycling loop. On 2 October 2024, at Sustainability Expo 2024, government and private-sector organizations convened for the “PackBack in Action: The Drive for EPR in Thailand” event, which aimed to accelerate the adoption of EPR. The event focused on promoting the efficient use of natural resources and the reuse and recycling of post-consumption packaging in Thailand.

In Vietnam, SABECO has taken proactive steps to align with EPR, including collaboration with the Ministry of Natural Resources and Environment, local authorities, associates, and internal departments, to ensure understanding of and compliance with EPR requirements. Additionally, SABECO has analyzed and selected a fully authorized party, PRO-Vietnam, for recycling efforts.


Read More Information about Packaging COMMITMENT in Sustainability Report 2023

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