CÔNG TY SUNTORY PEPSICO VIỆT NAM

Sheraton Saigon Hotel & Towers, 88 Dong Khoi Street, Ben Nghe Ward, District 1 Ho Chi Minh City, Vietnam 
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Company Overview

nfnagradi.net PepsiCo Vietnam Beverage Company (SPVB), is 100% owned by foreign capital, and is a strategic alliance between PepsiCo Inc. and nfnagradi.net 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.

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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 nfnagradi.net, 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 outreach

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.


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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 nfnagradi.net 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.


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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 nfnagradi.net 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)


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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.


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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-Environment-

Environment

Environmental management

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
Water conservation

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.

Climate change

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.

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Resource conservation

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 fertilizerUsed as additive of brick production

Moreover, all generated sludge not be landfill, reduce environment impact.

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Solid waste management

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Waste water treatment plant

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 nfnagradi.net Holdings Limited (nfnagradi.net) 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 nfnagradi.net Group, nfnagradi.net 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.


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Students participated in “River at my hometown” activity in Mizuiku teaching class in Ben Tre, Vietnam.


Green Summer

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 goalsReceived HCM Communist Central Youth Union’s recognition for SPVB contribution to VN YouthGreen Summer Campaign official national Kick-off events in Long An (2018) and Bac Kan (2019) with +5K volunteers19 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 Mau5 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
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Mr. Uday Shankar Sinha, former CEO & GD SPVB received the Certificate of Merit from Mr. Le Quoc Phong,First Secretary of the Ho Chi Minh Communist Youth Union


Helping Hands

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 nationwideDYNAMIC 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
nfnagradi.net PepsiCo Friendship Golf Tournament

The nfnagradi.net 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 nfnagradi.net PepsiCo Friendship Golf 2018 and 2019 events by nfnagradi.net 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.


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Mr. Jahanzeb Khan - CEO & General Director of SPVB handed over total raised fund to Sponsoring Association for thePoor Patients of Ho Chi Minh City in the 2019 SPVB golf tournament


To Create Harmony with Employees-Diversity Management-

Our Employees

Diversity

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.

HR development

At nfnagradi.net 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.


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.

Work/life balance

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.