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-
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 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.
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.
TTEA+ 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 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)
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 24 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. Also, Environment management system of 5 plants are apply GEHSMS standard of PEPSICO, by the way, plant does self-assessment yearly vs standard. The result of 5 plants are as below:
|Plant||Audit date||Standard||Result audit of third party||GEHSMS
|BNP||Aug, 2018||ISO14001:2015||0 NCs, No Obs||978|
|QNP||Oct, 2018||No NC, 2 Obs||955|
|HMP||Dec, 2018||No NC, 8 Obs||951|
|DOP||Oct, 2018||No NC, No Obs||978|
|CTP||Nov, 2018||No NC, 4 Obs||988|
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 2018 achievement vs. reduction target:
2018 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 applies some new technology to reduce CO2 emission such as:
-Apply Biomass boiler outsource replace for boiler using DO at Can Tho Plant (had done 2018Y). in 2019, it is continued for Quang Nam Plant
-Apply Solar project at Bac Ninh Plant (had done in 2015), and Dong Nai Plant will be done in 2019.
-Many small projects to improve operation/system to save energy such as: VFD applied, heat recovery for all pipe/equipment ..
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
By the way, 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 3 pillars including Education – Supporting the Youth, Water – Environment, Healthcare & Helping Hands. Helping Hands is a charity program 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 70 schools across Vietnam with nearly 18,000 students receiving education on water resource preservation. 50 clean water filtration systems installed also helped providing clean water for over 23,000 Vietnamese locals. 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 for the 2018 – 2019 academic year.
2019 marks the 5th year of Mizuiku in Vietnam and is the 3rd year the program be implemented at the nationwide scale. This year the program will be newly established in 17 primary schools in Lang Son, Quang Nam, Dong Nai and Ben Tre provinces, additionally to the current 70 schools. Currently, The Ministry of Education and training of Vietnam is in the progress of examining the Mizuiku materials to allow the materials being used as the reference books for primary students’ after-class activities. This year the program will also launch the first-time-ever series of picture books for children with the Mizu icon as the teller of water preservation stories.
Green Summer is a campaign for students in joining volunteering programs and held by Vietnam National Unions 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 next 3yr strategic partnership (2018-2020) with HCM Communist Central Youth Union and well leveraged it as a key important gov. partner for plastic recycle program
✓Received HCM Communist Central Youth Union’s recognition for SPVB contribution to VN Youth
✓Green Summer Campaign official national Kick-off event in Long An – REVIVE sampling hit +3K volunteers
✓15 WATER TREATMENT SYSTEMS in 4 provinces (Quang Nam, Ben Tre, Ha Giang, Lang Son)
✓9 sports equipment & 11 playgrounds in Bac Ninh, Hanoi, HCMC, Danang, HCMC, Can Tho
✓Brand love increasing: sampling 156K+ bottles of Revive, AQF, 7Up, TEA+, Pepsi, Mirinda, Twister
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 formed, 110 HH programs were initiated, more than 5,000 volunteers, 18,000 man-hours volunteering were contributed, 8.4 billion VND was used to build 3 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 Hochiminh 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: 13 participating Universities nationwide
✓DYNAMIC kick off events at 3 regions in 6 Universities reached +3,000 students
✓Supported EVP - HR talent dev. Programs sharing & to sign the strategic partnership with NEU
✓Sting sampling and branding
✓Cross functional contribution incl. local Sales/Finance joint and delivered speech
✓In cooperation w CC to plan for DYNAMIC fan page investment as a efficient communication channel promoting for DYNAMIC and SPVB/brands
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 1.2 billion VND was raised from Suntory PepsiCo Friendship Golf 2018 event by Suntory PepsiCo Vietnam in collaboration with the Sponsoring Association for the Poor Patients of Ho Chi Minh City will be donated to bring clean water projects to the "Clean Water For Primary Schools" for students in Ben Tre Province.
The CSR activities of SPVB received good attention from the media ion 2018 with over 40 news published on Dynamic program, 95 news published on “Mizuiku – I Love Clean Water” program and 50 news on Green Summer program. On digital communication, the Mizuiku fanpage attracted +50k interactions through its social activities and gained 2,000 new followers to make the total number 13k followers of the page.
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 receive a big support from Line managers and employees. There is about 1000 e-kudos granted every year.
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 activities such as the healthy food days, the 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
At SPVB, Health & Safety of the employees is one of the top priorities of the company. Throughout the years, the Health and Safety Department has conducted many meaningful activities and trainings in order to help enhancing the safety awareness for SPVB employees. Some of the most outstanding campaigns & activities include:
Safety Campaign 2018- Operations
At SPVB, Health & Safety of the employees is one of the top priorities of the company. Throughout the years, the Health and Safety Department has conducted many meaningful activities and trainings in order to help enhancing the safety awareness for SPVB employees including organizing Safety Campaign (Operations) to help deepening knowledge on H&S of Operations employees; carrying out Local Safety Contests at local plants to enhance plant employees safety awareness; organizing Behavior Based Safety training to improve safety behaviors of employees, providing Defensive Riding & Driving training in coordination with Honda Vietnam to help reduce the traffic accident rate amongst SPVB employees year by year; providing Warehouse Safety training for distributors of SPVB to equip them with the standards, guidelines of keeping warehouse safe and sharing the best practices; enabling Health Care consultant event and online program to consult employees on health and disease prevention topics, etc..