Head OfficeSheraton Saigon Hotel & Towers, 88 Dong Khoi Street, Ben Nghe Ward, District 1 Ho Chi Minh City, Vietnam
Business activitiesProduction and sales of non-alcoholic beverages
Suntory PepsiCo Vietnam Beverage Company (SPVB), is 100% owned by foreign capital, and is a strategic alliance between PepsiCo Inc. and Suntory Holdings Limited, which was officially formed in April 2013. Our headquarters is located on the 5th Floor, Sheraton Hotel, 88 Dong Khoi Street, District 1, Ho Chi Minh City. Our corporate values are “Yatte Minahare” and “Giving back to society”. In the future, we will continue to pursue sustainable development objectives, bring benefits to our employees and business partners, and contribute to the communities where we do business and operations.
To Create Harmony with Customers and Partners
-Products and Services-Quality assurance
SPVB's quality and food safety policies are in accordance with standards set by the Suntory, PepsiCo, Pepsi Lipton groups and Vietnam Government. All company plants have FSSC 22000 certification. Additionally, the inspection related to the AIB International Consolidated Standards is carried out at all sites and special tools are provided to our sales teams to help them communicate information on quality to our customers.
Relationship with the Customers
Customer satisfaction is a first priority, and hotlines are in place to solicit customers' feedback and requests. Feedback is an essential part of our qualitative research, which is used to improve services, fine-tune marketing and increase satisfaction. In the recent years, SPVB Sales team has come up with the conclusion that the sales volumes would increase proportionally if consumers found the store displays appealing. This idea was after rolled out to on-site execution that one of our DCR’s KPIs was actually to neatly arrange the products in the visi-coolers and on racks with SPVB’s must-have products. Our DCR team was also required to ensure that the products are promoted by using posters and other display materials.
Contributing to consumer health
SPVB beverage portfolio in this market includes a diverse set of exciting beverages such as Pepsi, 7-Up, Mountain Dew, Sting, Mirinda, Aquafina Lipton, Revive, Tropicana, Twister and Tea Plus. We take our responsibility to improve the nutritional quality of our portfolio very seriously, and we are on a continual journey to transform our product portfolio to provide Vietnamese consumers which more nutritious beverage choices, for example, Oolong TEA Plus, which prevents fat absorption.
TEA+ Oolong Tea
TEA+ Oolong Tea was released in 2013 in Vietnam, starting a new segmentation of tea in Vietnam. This tea is made using the technologies we cultivated while developing Suntory Oolong Tea, a product that has been popular in Japan for more than 30 years. With a refreshing and delicious taste, TEA+ Oolong contains OTPP, a natural ingredient extracted from oolong tea leaves that assists in the suppression of fat absorption. By extracting and maximizing the OTPP in oolong tea leaves, TEA+ offers consumers a healthier lifestyle, while maintaining the delicious taste and floral notes that come from oolong tea. After 6 years since the launching, TEA+ has now achieved outstanding result No.1 in HCMC, No.1 in Modern Traded and hopefully aiming South leadership in next 2 years.
TEA+ Oolong Lemon
TEA+ Oolong Lemon is a unique combination of oolong tea and delicious lemon flavor, launched in 2018 as the first of its kind in the Vietnam market. The special point about this product is that it brings not only refreshment and delicious flavor from the familiar lemon taste but also a healthier lifestyle by assisting in the suppression of fat absorption, thanks to the OTPP ingredient of oolong tea. This tea is made by using the technologies we cultivated while developing Suntory Oolong Tea—a product that has been popular in Japan for more than 30 years and is now the No. 1 bottled oolong tea brand* in Japan. (*2017 Euromonitor, brand shares of off-trade RTD tea in Japan, volume)
TEA+ Oolong No Sugar
Anticipating that Health & Wellness is now trending in Vietnam as Vietnamese consumers tend to reduce sugar intaking, TEA+ had launched Oolong No Sugar in 2019 to one-step-ahead capture this movement. This new variant is the combination of many goodness: TEA+ Oolong OTPP – prevention of fat absorption, authentic Oolong tea flavorful & aromatic sensation and sugar-free. Beyond this, TEA+ Oolong No Sugar with its premium mood & tone also reinforces TEA+ brand attributes in term Japanese-ness, Expertise & Good for Health. This new variant is now widely available in all Modern Trade channel across the country.
TEA+ Matcha is a new TEA+ product that was launched in 2016 in Vietnam. With an authentic tea taste, and Theanine extracted by our advanced technology, TEA+ Matcha allows the drinker to enjoy relaxation and refreshment. We hope people can fully relax and enjoy their days with TEA+ Matcha.
Relationship with Business Partners
Working with Business partners
SPVB treats all partners with fairness and respect. Since this joint venture started, SPVB has a network of suppliers and partners who work tirelessly to face all ups and downs in business with us. The relation with SPVB and some partners dated back to 25 years ago, when PepsiCo first started its operations in Vietnam. SPVB’s at its position today thanks to its partners’ contribution and collaboration.
To Create Harmony with Nature
All SPVB plants and have acquired ISO14001 certification and fully complied with laws and regulations. All plants passed audit by third party with zero NC.
About Environment compliance: SPVB always comply Viet Nam law and regulations. Passed all government audits with zero violation. There were 6 government audits had done in 2020.
We set up environment sustainability KPI's for water usage and energy usage. These figures were reviewed weekly at manufacturing meeting and monthly at company operating review meeting. Below is the SPVB KPI's 2019 achievement vs. reduction target:
2019 Targets and Results
SPVB has established targets and policies for water conservation. In addition to reduce consumption and effluent, we also strive to recycle water from treatment processes, bottle washing/ rinsing and CIP.
Recycle treated waste water to use for gardening and internal cleaning at Dong Nai Plant & Quan Nam Plant.
Analyses the water flow and find the priority point to focus on management.
CO2 emissions from both power and fuel are measured at our plants, with targets to reduce energy consumption and CO2 emissions. Methods include waste heat recovery, VFD for variable load motors/pumps/air conditioners, power-saving lighting, auto-timers at offices and eco oven for blowers.
SPVB applied some new technologies to reduce CO2 emission such as:
Apply Biomass boiler outsource replace for boiler using DO at Can Tho Plant (2018), Hoc Mon plant (2019). In 2020, it is continued for Quang Nam Plant.
Apply Solar project at Bac Ninh Plant (2015), and Dong Nai Plant will be done in 2020 (1 MWH), will continue extend to 4 MWH at Dong Nai Plant, 3 MWH for Quang Nam Plant, 3 MWH for Bac Ninh Plant.
Many small projects to improve operation/system to save energy such as: VFD applied, heat recovery for all pipe/equipment.
Conduct GHG reduction audit in 2020 to find the opportunity to reduce CO2 emission. Target reduce 25% CO2 emission amount from 2015 to 2030 (absolution). Build up the system to tracking CO2e.
We measure solid waste generation and recycling rates at our plants, with targets for reduced waste and increased recycling. We recognize the importance of following 3Rs practices (Reduce, Reuse and Recycle).
We incorporate 3Rs into product design by creating lighter packaging; to conserve resources and reduce energy consumed during transportation (related production and design are carried out in-house). We have also changed from PVC to OPP labels for PET bottles, and from PVC to ACL labels for glass bottles. This helps to reduce environmental impact and encourage proper recycling. Additionally, used materials at our plants are collected for sale to third-party companies for reuse or recycling.
Many lightweight projects are applied to reduce waste plastic discharged to environment, reduce environment impact.
Reducing pollution and managing chemical substances
We comply thoroughly with all laws and regulations for the prevention of soil, water and air pollution. We carry out environmental impact assessments and obtain governmental approval for all plants. We have also implemented hazardous waste management systems, and environmental leaders are positioned at each site to ensure proper treatment and disposal. All waste sludge of WWTP at all plant is collected and re-use for other purposes such as:
- Used as additive of bio fertilizer
- Used as additive of brick production
Moreover, all generated sludge not be landfill, reduce environment impact.
To Create Harmony with Society
-Cultural and Social Contribution-
Relations with the Local Community
Pursuing the corporate value "Giving back to Society”, CSR is an integral part of SPVB's sustainable development. SPVB CSR focuses on 2 pillars including Education – Supporting the Youth, Water –Environment, and a charity program named Helping Hands which has been financed and operated by SPVB's employees across the country.
“Mizuiku – I love clean water” program
Mizuiku is an initiative of Suntory Holdings Limited (Suntory) implemented in Japan since 2004. The program celebrates its 15th anniversary in 2019. In 2015, the program was successfully piloted in Vietnam’s Northern region with the purposes of educating pupils on water preservation and providing water filtration systems to the remote areas of Vietnam. The original format was customized to suit the Vietnam’s conditions and create an interesting learning platform for children.
Since 2017, the Ho Chi Minh Young Pioneer Organization and the Vietnam National Union collaborated with Suntory Group, Suntory PepsiCo Vietnam to implement the program at the nationwide scale.
Up to the present, the program has been expanded from 6 to 90 schools across Vietnam with nearly 25,000 students receiving education classroom teaching on water resource preservation. 15 sanitary support and 53 clean water filtration systems installed also helped providing clean water for over 34,500 Vietnamese locals. In 2019, Mizuiku successfully launched the first time ever series of picture books for children with the Mizu icon as the teller of water preservation stories. Mizuiku continues to be a part of the Joint Program between the Ministry of Education and Training and the Ho Chi Minh Communist Youth Union from 2017 till now as one of an experiment programs for the children in the entire Vietnam.
2020 marks the 6th year of Mizuiku in Vietnam and is the 4th year the program be implemented at the nationwide scale. This year the program will be newly established in 20 primary schools in Lang Son, Quang Nam, Dong Nai and Ben Tre provinces, additionally to the current 90 schools as of 2019. In particularly, thanks for the supporting of our partners and local government authorities, this year the program plans to expand the educational part to all primary schools in Ben Tre and reach to international primary schools in Hanoi, Ho Chi Minh cities, to increase more children beneficiaries of this educational program. Furthermore, online training for trainer class will be also introduced to green summer student volunteers via MIZUIKU E-learning platform.
Green Summer is a campaign for students in joining volunteering programs and held by Vietnam National Union of Students every summer. Throughout the campaign, many volunteers nationwide contributed effectively to society, through activities such as building and renovating countryside roads, bridges and charity houses, participating in ensuring safety traffic, and urban civilization communication activities; supporting in university entrance exams. Below are some highlights of Green Summer in the recent years:
- Successfully signed the second Annex within the framework of the 3yr strategic partnership (2018-2020) with Vietnam National Union of Students and well leveraged it as a key important partner for Sustainability development goals
- Received HCM Communist Central Youth Union’s recognition for SPVB contribution to VN Youth
- Green Summer Campaign official national Kick-off events in Long An (2018) and Bac Kan (2019) with +5K volunteers
- 19 WATER TREATMENT SYSTEMS in 8 provinces (Quang Nam, Ben Tre, Ha Giang, Lang Son, Quang Ninh, Hai Phong, Quang Tri, Binh Dinh)
- 9 sport equipment & 12 playgrounds for children in Bac Ninh, Hanoi, HCMC, Danang, HCMC, Can Tho, Ca Mau
- 5 BEACH CLEAN-UP EVENTS in 5 provinces (Hai Phong, Quang Ninh, Binh Dinh, Quang Nam, Ben Tre) with 1K volunteers (SPVB & local), contributed to clean-up 8.5 tons of wastes, increased engagement to more than 230 employees and customers
Helping Hands program, an employee volunteering and donation program, where employees are provided with opportunities to care for community and the world, we live in. It has launched in August 2011 supporting to enhance SPVB's core values and to build the corporate culture, engage employees for long term commitment and contribution to both business and society sustainable growth. The total raised funds by employees will be approved for matching by the company. It's a good platform for all - our employees, community and business. Since 2011, 10 SPVB Helping Hands committees were formed, about 140 HH programs were initiated, more than 5,000 volunteers, 18,000 man-hours volunteering were contributed, 8.7 billion VND was used to build 4 schools, 3 houses and 3 libraries for children in mountainous areas, award thousands of scholarships, support 1,600 eye surgeries, present gifts for the disabled and the older people in social centers.
Education - Dynamic Contest
For years, SPVB has been taking advantage of all resources to bring the best opportunities for Vietnamese young talents to learn and exchange from people inside and outside the country.
For the last 23 years, SPVB have been accompanying the “DYNAMIC – The future entrepreneurs” contest and since 2017, we are proud to become its co-organizer with University of Economics Ho Chi Minh City for the new DYNAMIC start up version where the students had room to conceive and develop their own business ideas. Here are some highlights of Dynamic of the recent years:
- Expand the participation of more universities: 14 participating Universities nationwide
- DYNAMIC 2019 kick off events at 4 regions in 7 Universities reached +2,000 students
- Cross functional contribution incl. local Sales/Finance/Marketing joint functional trainings for DYNAMIC students
Suntory PepsiCo Friendship Golf Tournament
The Suntory PepsiCo Friendship Golf was organized from 2001 to recognize the companionship, contribution and cooperation of its partners and friends to the overall success of the company. Since 2007, the event has been organized to raise funds for poor people living in poverty. This is the 16th edition of this popular event.
From 2007 to 2015, the raised fund from the tournament has been used to conduct 380 heart surgery donations, award 40 scholarships and sponsored thousands of Tet gifts for orphans and the elderly, support 30 disabled athletes with excellent academic results, build 6 health centers, 28 houses, 4 kindergartens and 2 informatics centers. In 2016 & 2017, nearly 1.7 billion was used to build 6 water supply systems in 5 schools and one island district of Ben Tre province to provide clean water supply for more than 4,000 people and children here and provide 74 water filters for more than 1,600 students in 7 schools and about 7,000 patients each year at two infirmaries in Tan Tru District, Long An Province.
Over 2.8 billion VND was raised from Suntory PepsiCo Friendship Golf 2018 and 2019 events by Suntory PepsiCo Vietnam in collaboration with the Sponsoring Association for the Poor Patients of Ho Chi Minh City was donated to bring clean water to students in Ben Tre Province via the "Clean Water for Primary Schools" program.
To Create Harmony with Employees
SPVB promotes local employment and national workforce development. Additionally, we also value diversity and inclusion, and train our employees and management in these values. One of our key performance indicators for management is our female employment ratio, which we consider a key aspect of workforce diversity in Vietnam.
At Suntory PepsiCo, we are passionate about growing our business and we recognize that in order to do this we must continually support and develop our employees.
With the purpose to provide our employees with the expertise they need to fulfill their role and make an impact on your business, we build up a well-rounded training portfolio which includes: Leadership skill, General Skill and Functional skills. Every year, around 60 – 70 workshops that reach ~1,700 employees.
Beside training workshops, we also have some activities to enhance the learning & sharing culture such as Lunch & Learn, Internal Trainer Club, etc.
Since July 2015, in order to promote recognition cultures in SPVB, E-kudos - the first ever recognition online tool has been launched. This initiative receives a big support from Line managers and employees. There is about 1000 e-kudos granted every year.
Internal Trainer Club
In Organization Health Survey 2017 conducted by Tower Watson, with more than 99% response rate, SPVB has received outstanding results with 8 out of 16 categories getting higher scores compared to Vietnam National Norm (Such as Pay & Benefits, Leadership, Operating Efficiency, Performance Management, etc.). Especially, in the Sustainable Engagement category – key variable of the survey, we surpass both Vietnam National and Beverage Overall Norm – showing the intensity of our employees’ connection to the organization.
To help promote a healthy work/life balance, SPVB offers flexible working hours to the managerial levels up. In addition to flex-time, female employees may also reduce their working hours in order to facilitate childcare when the children are under 1 year old. Excessive overtime is discouraged, and a work-from-home system is available. Besides, SPVB promotes the team activities such as the team building activities and trips, the sport programs and the healthy living promotion campaign for the healthy living style to enhance the awareness of the employees and their family on the health protection and prevention.
Health and safety
Safety is always the top priority of SPVB company in order to bring a healthy and safe working environment to employees. In 2019, many safety projects and programs were implemented at all plants and sales offices of the company. These activities have helped the company significantly improve working environment, raise all employees’ awareness and safe working skills.
1. 2019 safety campaign program
With the participation of all employees in the Sales & Manufacturing Division: The program started in February 2019 with many competitive activities such as near miss reports, competitions of the talented trio in the Sales Division, safety competition between teams. The safety campaign 2019 concluded by a national final contest held in Hanoi in November 2019, marking a successful milestone in the company's safety activities.
2. Defense driving training program & safe driving workshop for all employees in the Sales Division and Head Office
Defense driving training is the special training program implemented by SPVB company & Honda Vietnam company. This program equips employees’ skills to drive safely on the road, handle dangerous situations, avoid accidents & raise awareness of compliance with traffic laws on the road. The program run from April 4-8, 2019 in all business areas & Head office.
3. Online safety quiz program
The online safety quiz program was designed to enhance employees’ safety knowledge & awareness. The program took place in November 2019 for all employees in the Sales division. The program recognizes the active participation of all employees during the program.
4. Warehouse Safety Training Program for Distributors of SPVB Company
Taking place from May to August 2019, the warehouse safety training was one of the programs to increase Distributors’ awareness and equip knowledge of warehouse safety measures for SPVB distribution system. The program was implemented by the coordination of many departments such as QA-QC, PA, Sales & H&S to ensure practical and diverse information and knowledge for distributors of SPVB company’s areas in Vietnam.
5. Staff health counseling program
This is an important part of the company's staff health care programs. With the purpose of providing employees the most practical and necessary information, health care advices for Sales and Head Office employees are conducted via 2 live & online channels. The program run in November & December at HO of all company’s business areas.
6. Safety Deep Drive (SDD)
SME (Suntory Monozuki Experts) communities of safety specialists with highly developed knowledge and expertise on safety focused on support SPVB with clear roadmap and action plan in 2019. This commitment from top Suntory and SPVB leadership and management help to find out aspects of improvement and alignment with Suntory H&S system. The main objectives and activities were:
●Train the trainer: EHSM team joined train in one of the famous Suntory training centers at Japan with key learnings of Risk Assessment, KYT (Danger prediction), Safety machine design, Visualization and Communication. Then, come back to Vietnam and implement at SPVB plants.
●Act in Gemba: SME/SBF came to visit 5 plants of SPVB, gave feedback on current situations, conditions; rise up unsafety detection power by Gemba site tour.
●Another bonus point is that Safety Machinery Design lecture to plant engineers when SME visited Vietnam and monthly SDD online-meeting with all the presence of Plant Directors, EHS Managers, SHEQ Senior Director, SPVB leadership team and SBFA.
7. Safety talk
Safety talk – talking about 1 simple topic in a short period of time (approx. 30 mins), delivered monthly by PD, Managers. This is a new program deployed in 2019 by Nationwide H&S team with the purpose to provide simple & easy-remember safety knowledge to employees; step-by-step enhance safety awareness and make safety as priority in daily tasks. The simpler, the easier to apply in employees’ activities! Safety should be easy to talk about. Given that it’s in everyone’s best interest, as a topic of conversation it should be no more controversial than discussing the weather. Started from Sep-2019, “safety talk” now likely becomes monthly routine. Event some groups/sections when starting a meeting, they will talk about safety, update some situations at their sections. Scheduling clear agenda for 2019-2020, this lets employees have a full image of what they will receive, spread the spirit of “leading by example” to all other interests.
8. Near miss
Near miss is an unplanned and undesired work-related event that is under slightly different circumstances, could cause an accident or incident. Many safety activities are reactive and not proactive, and some organizations wait for losses to occur before taking steps to prevent a recurrence. Near miss incidents often precede loss producing events but may be overlooked when there was no harm (no injury, damage or loss).
At SPVB, employees are firstly encouraged to report near miss (including unsafe conditions and unsafe behaviors) with KPI 2 near miss/month. Moreover, to ensure the quality of near miss reporting, SPVB switched to percentage of near miss closed, from quantity to quality stage with KPI of 95%.
Recognizing and reporting near miss incidents can significantly improve workers’ safety and enhance an organization’s safety culture. SPVB believes that if employees report the little stuff, they can prevent the big stuff accordingly.
9. Leadership Gemba
Leadership Gemba is a part of Daily Management which helps plant management team to check the real situation and directly interact with operators and workers. By this activity, management team can ensure the actual situation is same as the report they received from their team as well as building people engagement. In 2019, this is reinforced stronger by the participation of senior leadership team including SPVB CEO, Excom and directors. The activity is also scheduled for night shift, the time when employees are easy to break the safety rules. Any unsafe action would be stopped immediately and disciplinary is applied if required. This helps to build safety culture in the company. The Gemba matrix is developed and applied consistency in 5 plants.
To improve SPVB operational standard system, Nationwide H&S team made a benchmarking against SOPs of other Suntory’s plants such as SBFA, Singapore, Thailand, Indonesia, etc. This was a great chance to get good practices, standardization from those countries, selected what are good points and apply for SPVB. With strong support from SPVB leadership team, those changes now is being applied and making change in safety-mindset of employees, contractors. The focused procedures are Work Permit, Work at height, Lock out Tag out (LOTO).
10. Safety Committee meeting:
Plant Safety Committees have been implemented with clear roles and responsibility of each member. Committee members are coming department in plant and department representatives for Safety. The meeting of this committee is organized monthly. The topic will be discussed during the meeting are pending action from last meeting, legal compliance, H&S KPI, unsafe action, unsafe condition at work, improvement points suggestion from department… Plant Director is the leader of this meeting.
Beside that SPVB also has Safety Steering Committee meeting organized monthly with Top management from SBFA and SPVB to review Safety Culture Change implementation across plants.
11. Safety training:
Safety training is a very important part of building people capability in the journey of Safety Culture Change. Besides Safety training course as legal requirement, basing on the training need analysis and learning from event, SPVB has defined 18 safety training topics and developed training materials as well. Nationwide H&S already set-up Safety training matrix: topics vs. job title. The matrix with fixed 34 course names, course codes, period, trainers, materials and for each position. With this clear guidelines and matrix, the execution of training is easier for the team.