Dien Tran
Duy Cao
Luu ngoc thuy vi
Western Sydney University
Guenola Nonet
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As a leader in the beer industry, SABECO's sustainability strategy focuses on reducing negative impacts on the environment while continuing to produce excellent goods and contributing their best to society.
Awards and merits: Vietnamese consumers have long been familiar with SABECO’s brand name. In the recent years, the corporation has fulfilled key criteria in the economic field, contributing to creating jobs and ensuring stable income for workers. Together with the goal of sustainable development, the corporation was honored to receive the Labor Hero title in the renovation period. To date, the corporation has ranked 21st among 72 in the world’s largest beer producers and ranked third among beer manufacturers in the Southeast Asia region. In addition, the brand was honored to participate in the National Branding Program in 2008, 2010 and 2012. In particular, the brand has proudly become a member of the Berlin Beer Academy.
SABECO's awards include:
Third Order Independence Medal, 2002
First Class Labor Medal, 1996
Third Class Labor Medal, 1997
Third Class Honor Medal, 2001
Third Labor Medal for 03 leaders, 2006
3rd Class Labor Medal 2008
Labor Hero Medal 2008
Second Class Labor Order for two leading cadres, 2008
Emulation Flag and Certificate of Merit from the Prime Minister:
Emulation flags of the Government in 1994, 1995, 1997,1998, 2003, 2004, 2005 and 2006
Certificate of Merit from the Prime Minister to the Corporation, 2002
Certificate of merit from the Prime Minister for 07 leaders of the Corporation, 2004 and 2006
Communist Party Committee of the Ministry of Industry awarded the GDT Party:
The Corporation Party won the title of Strong Inside Party in 2000, 2001, 2003, 2004 and 2005
Trade unions at all levels reward the Trade Union of the Corporation:
Vietnam Labor Federation awarded the Emulation Flag: 1997, 1998, 1999, 2000, 2001, 2003, 2004, 2005
3rd Class Labor Medal 2008
Vietnamese Consumption:
Binh Tay Liquor Company was established in 1900 by Société Francaise des Distilleries de Indochine (SFDIC), France, and has been operating since 1902 and now is called Binh Tay Liquor Company under the General Corporation of Beer - Alcoholic Beverages. Saigon, Ministry of Industry. The products are very popular and have been voted by Vietnamese consumers as high quality Vietnamese goods for many years. The company is currently selling the products widely on the national market and exporting.
Most Vietnamese companies apply several principles of CSR and responsible business. It is par of the culture in the country that companies should help and support the population. SABECO is no exception to that. Together with business and production activities, SABECO is aware of their responsibilities to the community. The corporation has actively participated in specific programs in the Buy Vietnamese Goods campaign. In particular, the corporation has paid special attention to promote beer consumption in the home market. SABECO has affirmed its level, prestige and position in the market, helping the Vietnamese feel pride about domestic goods.
Making beer requires a lot of energy and a lot of water, but increasing brewery sustainability is at the forefront of the minds of all brewers who are constantly putting in effort to increase efficiency and ecological responsibility. Reducing waste water, excessive energy consumption, solid waste and harmful emissions without compromising the quality of beer continues to be an important battle for brewers all over the world.
SABECO’s strategy aims to recycle the majority of their residual products from the brewing process, which comprises brewer’s spent grains, surplus yeast, and materials like glass, cardboard, aluminum, plastic, and paper. Their methodology, called the SABECO Waste Hierarchy, gives top priority to preventing the creation of waste in the first place. When waste is created, they prioritize preparing it for re-use, recycling, other recovery (such as energy recovery) and disposal (landfill) in descending order of environmental preference.
a. Protecting water resources
SABECO has used the Leadership in Energy and Environmental Design (LEED) guidelines as a resource towards sustainability when designing and operating their Cu Chi brewery. “Every day, through working and learning, we look at all that we do and we try to find something to improve — no matter how small” explains interviewee. “The real reward is a more sustainable brewery for generations to come”.
b. Reducing CO2 emissions
Large investment in energy optimization were completed at SABECO’s Cu Chi brewery expansions in late 2008. They achieved remarkable reduction through harnessing renewable energy and implementing energy saving initiatives. At Cu Chi, they harnessed steam from burning rice husks in biomass boilers to generate thermal energy for beer production. They improved the insulation of the hot water system, which reduces the amount of energy needed for heating through limiting energy losses.
They switched from diesel to natural gas to power forklifts at their brewery. All lights used at the packaging lines have been changed to energy-efficient LED. They also willing to install solar panel as part of energy saving strategy in the next two years.
SABECO are also cutting their emissions through sustainable packaging. Recycled aluminum reduces greenhouse gas emissions by 95% compared to primary aluminum. Cans also pack more efficiently and weigh less than bottles, which reduces both the cost and the carbon intensity of shipping and distributing.
c. Advocating responsibility consumption
To promote health and well-being for all, several international leaders are committed to the Sustainable Development Goals to strengthen the prevention and treatment of substance abuse, which includes the harmful use of alcohol. Beer drinking is a culture in Vietnam, each Vietnamese person drinks approximately 38 liters of beer a year. According to Rong Viet Securities report, the consumption rate of Vietnam’s beer industry has been growing at around 6-9% per year due to the golden population structure, with 60% of the population being under the age of 30. This raises an issue of responsible consumption.
As a leading brewer in the country, SABECO recognizes the important role of shaping consumers’ perception towards responsible drinking, while addressing the negative social and health problems associated with alcohol abuse.
The “Drink responsibly” message is always prevalent throughout their communications. At events, the firm enforces the legal drinking age restrictions, and promotes “Enjoy Responsibly” messages. The company offers attendees free flow of water to alternate their drinking. On the product packaging, they provide their consumers with information about the alcohol content of beers, including responsible drinking symbols to discourage drink-driving, consumption by pregnant women, and under-age drinking.
The company believes in the concept of “Unity is strength”. By building partnerships, their efforts in promoting responsible consumption will reach wider audiences and have bigger impacts. As a pioneer in responsible drinking programs, SABECO has collaborated with the National Traffic Safety Committee (NTSC) and International Centre on Alcohol Policies (ICAP) Vietnam to run the “Enjoy a Responsible Day” program at local universities. Additionally, in the coming years, they are going to promote a campaign on alcohol abuse to develop consumers' awareness effectively and help shape their attitude towards alcohol.
d. Promoting Health and Safety
SABECO cultivates a strong culture and management of Health and Safety to all employees from production, logistics, distribution, sales and business services.
The company encourages staff to share their ideas (e.g. ideas were shared on saving energy, electricity, water), by organizing biannual brainstorming sessions and rewarding employees for their innovations.
Beyond their own employees, the firm has also a positive impact on their suppliers (farmers) and on the community at large. E.g. SABECO uses more biomass, they have provided an additional income to the farmers by purchasing rice husk from them.
e. Growing with communities
The corporation’s members have implemented social activities in a practical and effective manner, throughout the entire business. Staff have implemented several significant programs such as raising fund of nearly 2 billion VND for the Spratly Islands, implementing Governmental Resolution on reducing poverty in 61 poor districts, supporting 5 billion VND for Thanh Hoa Province’s Nhu Xuan District, constructing 10 bridges in Bac Lieu Province’s Phuoc Long District with a total capital of 5 billion VND, responding to the National Target Program on new rural area construction and relieving the poor people who were affected by typhoon 13 in Central Vietnam.
One of SABECO’s practical and significant activities started early 2014 is called “Returning to traditional moral values” program with the participation of 150 excellent trade-unionists. The program offers opportunities for members to meet and share about their experiences and personal difficulties. This helps deepen communication and strengthen solidarity amongst colleagues. In March 2014, SABECO raised funds of 100 million VND for the Phu Tho Labor Federation to help take care of workers facing difficult circumstances. The corporation also visited and gave presents to children facing difficult life challenges and to orphans located in Birla Children’s Village in Hanoi. The donations amounted to a total value of more than 10 million VND.
f. Local sustainability
The company encourages local supply of sustainable raw materials. SABECO manages suppliers to encourage responsible business conduct in various areas (human rights, labour, anti-corruption, health and safety and environment).
Nearly 80% of the firm’s packaging materials are locally sourced. This includes glass, cans and packaging cardboard, as well as rice husk used as fuel for biomass boilers. Local sourcing allows the firm to create jobs on the domestic market, by then benefiting smallholder farmers and factories. At the same time, it allows them to achieve cost savings and to lower their carbon footprint by reducing transportation distances along the value chain.
This case helps understand how high-technology helps produce the best beverage products on the Vietnamese market and also how the entire company can contribute to the society in a sustainable manner.
- Create excellent, quality products
- Reduce waste water and energy consumption
- Encourage responsible drinking awareness
- Help people through working opportunities and charity
- Improve high standard products and improve sales
- Maintain strong brand name and market share
- Contact directly with customers
- Improve business morale as well as business culture
- Reduce green house gas emission
- Reduce the amount of waste water
- Improve people awareness of responsible drinking
- Conduct quality products for healthy lifestyle
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Mr. Phan Thanh Lam, Brand Manager
