Beverage Businesses on Journey of Green Production

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Green production – Key to promote sustainable growth

Faced with the impacts of climate change, severe environmental pollution, and gradually depleted resources, green consumption is rapidly emerging on a global scale. Together with that, green production is gradually becoming an inevitable trend in business development process. To realize such an aspiration, businesses need to innovate production processes and operate “green” solutions to use natural resources economically, reduce environmental impacts while still ensuring product quality. Businesses in each field will choose different solutions to promote green production capacity to suit the general development trend, improving their position and competitiveness in domestic and foreign markets.

Many manufacturing enterprises in Vietnam have recently promoted the use of natural materials, renewable energy, investing in modern technological lines, quality management according to international standards, installing modern waste treatment systems... in the production and business process to minimize environmental impacts, moving towards green production.

A report by the United Nations Industrial Development Organization (UNIDO) said that green production can grow up to 4-6% per year and create about 15 million new jobs by 2030.

In the beverage sector, many enterprises in Vietnam have pioneered investment and transformation into a circular economy and green economy to ensure competitive advantages when integrating into the global market. The application of modern technology to the beverage production process has quickly become a mainstream trend. Enterprises are promoting the application of new technology to the production process, using green energy and natural raw materials to improve production capacity while ensuring product quality, creating competitive advantages.

Chu Thi Van Anh, Vice President and General Secretary of the Beer, Alcohol and Beverage Association emphasized the importance of green production in the beverage sector.

According to the Vietnam Beverage Association, the industry contributes nearly 60 trillion VND/ year to the state budget, making a significant contribution to the overall development of the economy, meeting social consumption needs, ensuring market stability and serving export goals. Therefore, moving towards green production among the goals pursued by beverage businesses for sustainable development.

“Green production towards a circular economy is a global trend. Vietnam has been making great efforts to implement it in recent years. Since the COP26 Conference in 2021, with Vietnamese government's strong commitment to strive for zero net emissions by 2050, along with two related commitments to realize sustainable development goals, beverage businesses in Vietnam, particularly soft drink industry, have been making efforts to implement many solutions for these goals", said Chu Thi Van Anh, Vice President and General Secretary of the Beer, Alcohol and Beverage Association.

Adapting to this trend, since the 2000s, Tan Hiep Phat has boldly invested in production technology, prioritizing the use of renewable energy and natural materials. These are three among many solutions to develop green production capacity that are highly appreciated to help businesses ensure economic growth and environmental protection goals, towards sustainable development.

Improving competitiveness to join the green race

From the beverage industry's perspective, green production is a mandatory trend for businesses, especially those with export products. Green production capacity is among the criteria that help domestic businesses integrate with the industry's development and affirm their competitiveness in the market.

Setting foot in Tan Hiep Phat's factories, one will see a series of modern and automatic technological lines operating in a closed process. The company has installed 10 Aseptic cold filling technology lines from GEA Group at factories across the country. This state-of-the-art sterile production technology line operates on the principle of automation and a closed loop from the extraction of raw materials, blowing bottles to filling, capping, labeling to packaging. This helps the product retain good nutritional content, natural color and flavor, purity, while needing no preservatives.

Close-up of the sterile cold filling line developed by GEA at Tan Hiep Phat Company

The application of Aseptic technology in production is an important step for Tan Hiep Phat to improve green production capacity, transforming the circular economy towards sustainable development. This technology has helped the business reduce the amount of plastic used compared to other technologies such as conventional hot filling. The bottle's weight are reduced by 50%, from 27gr to 13.5gr. In just 9 years from 2014 to 2023, Tan Hiep Phat has reduced 78,000 tons of plastic waste, contributing to minimizing the impact on the environment.

At the workshop named "Towards Net-Zero: Strategies and solutions to reduce greenhouse gas emissions in the food industry" within the framework of the Vietfood & Beverage - Propack Vietnam 2024 exhibition, Vincent Mauer - General Director of GEA Vietnam Co., Ltd. said that GEA and Tan Hiep Phat are working together to deploy "Add better," an aseptic filling machine to further reduce plastic.

“Compared to hot filling technology, using Aseptic technology in filling lines ensures a reduction of plastic used, increasing the sensory quality and shelf life of customer products. Thus, it allows access to more consumers in the Vietnamese market in a more sustainable way. Our continued innovation in the application of green technology is focusing on other parts of the line such as the blower. Currently, these parts are operating in non-sterile conditions, which consumes more plastic and water. By converting the blower from non-sterile to sterile conditions, we will continue to reduce plastic consumption and save water, while supporting Tan Hiep Phat on the path to achieving carbon neutrality”, emphasized the GEA representative.

Vincent Mauer - General Director of GEA Vietnam Co., Ltd. shares about the strategy to accompany Tan Hiep Phat.

In addition to technological improvements, when visiting Tan Hiep Phat's factories, one can see the company's persistent efforts in pursuing green production. At Number One Hau Giang and Number One Chu Lai factories, solar power systems are installed on the factory's rooftop system. Using green electricity contributes to ensuring national energy security and protecting the environment.

Along with many measures to reduce greenhouse gases, Tan Hiep Phat also uses green materials from natural sources in the process of promoting green production capacity. These sources of materials not only help businesses create products that are beneficial to consumers' health with a characteristic natural flavor but also contribute to creating an ecosystem for exploiting and developing agriculture sustainably.

For instance, Tan Hiep Phat sources its tea materials from the renowned Thai Nguyen tea "capital." Farmers harvest pure green tea leaves, which then undergo meticulous care and processing to fulfill over 30 criteria of Tan Hiep Phat's stringent standards. Following each harvest, the soil is nurtured, branches pruned, organic fertilizers and biological pesticides applied, and the plants are allowed to rest for 10-12 days. Typically, there are eight harvests annually. During the frosty period from August to October, harvesting can extend to 40 days, and in winter, it may take up to two months due to the tea plants' dormancy.

Tan Hiep Phat emphasizes the use of eco-friendly materials in the production of their health-oriented beverage products.

Bui Thi Thao, a resident of Ao Rom 1 Hamlet in Khe Mo Commune, Dong Hy District, Thai Nguyen, has been providing tea materials to Tan Hiep Phat for 24 years. She revealed that during the cultivation and harvesting of tea, farmers are required to adhere to specific planting and maintenance techniques to meet the company's standards. Moreover, they must stay abreast of the most recent methods and procedures for tea cultivation and care, including soil maintenance, weeding, applying organic fertilizers, and using biological products to ensure the green tea leaves fulfill the stringent quality criteria set by Tan Hiep Phat.

The United Nations predicts that by 2030, the demand for natural resources will triple from current levels, surpassing the world's capacity to supply them. In response, Tan Hiep Phat is adapting its operations, developing green materials, and embracing green energy and technologies. This transition from prioritizing short-term profits to embracing sustainable long-term values is crucial for the company's expansion, environmental conservation, and social welfare. By investing in green production, companies can meet their social responsibilities while also achieving economic goals. Continuously improving production capabilities not only reinforces a company's position in the industry but also supports environmental preservation and promotes sustainable economic development.

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