ThaiBev is committed to developing a circular economy in Vietnam

The world is increasingly aware of the importance of maximizing resource efficiency and transitioning to a circular economy. Applying circular economy principles throughout its value chain, ThaiBev, ASEAN’s largest food and beverage leader, has developed a closed-loop packaging collection system to create new post-consumer recycling opportunities.

This is seen as another way to increase resource efficiency and reduce waste, especially with key packaging materials such as glass, paper, aluminum cans and PET bottles. Thai Beverage Recycle, a subsidiary of ThaiBev, specializes in post-consumer packaging management.

ThaiBev aims to achieve circularity in packaging, taking into account all environmental as well as social impacts. The company integrates the circular economy concept into its entire packaging value chain, from the design stage to post-consumer packaging management.

The key elements of ThaiBev’s management approach towards packaging circularity are: optimizing packaging weight and volume; collect and classify post-consumer packaging; reuse and recycle; sustainable packaging product design and innovation; and cooperation of stakeholders.

In 2017, ThaiBev bought more than 340 million shares, equivalent to 53.6% of SABECO, at a unit price of 320,000 VND (nearly 14 USD).

“SABECO is our crown jewel – a rare asset among all the brewing assets in the region,” said Charoen Sirivadhanabhakdi, Chairman of ThaiBev.

ThaiBev and its subsidiary in Vietnam – SABECO have integrated the circular economy development strategy into the group’s operations for many years.

ThaiBev’s “Bring It Home” initiative is a cooperation project of ThaiBev with agents and distribution facilities to collect used beer and glass beverage bottles for reuse and recycling. This is a good opportunity to control bottles and packaging materials after use, as well as leverage the company’s Logistics and Distribution department to minimize empty container truck turnover and optimize manpower and resource usage.

ThaiBev also has the Thailand Supply Chain initiative established by 8 Thai businesses in Vietnam. The purpose of this initiative is to strengthen cooperation between Thai businesses in the exchange of information, knowledge, and experience through investment activities.

5 groups are participating in this initiative to protect value in business management, sharing knowledge related to corporate law, finance and social responsibility, and create value through collaboration to improve current operational efficiency such as joint sales, cross-training or joint ventures.

ThaiBev representative said: “We propose to build a Thailand-Vietnam supply chain network. The two countries have the potential to become leaders in circular economy in the region. To do this, both countries need to make collective and unified efforts.”