SABECO highlights EPR role amid F&B sector’s shift towards circular economy

Larry Lee, SABECO's Deputy General Director of Strategic Assets and Sustainability delivered a speech

These issues were discussed at the forum “Green Packaging: How EPR is shaping sustainable value”, where policymakers and industry representatives examined the role of Extended Producer Responsibility (EPR) in driving sustainable transformation. Nguyen Thanh Yen, deputy head of Legal Issues and Policies Division, Department of Environment under the Ministry of Agriculture and Environment, stressed that enterprises are central to the effective implementation of EPR and the promotion of circular economic models.

“Businesses determine product design, material selection and life cycles, making them the key drivers in moving away from traditional linear production models,” he said

Participating in the forum, SABECO shared its practical experience in implementing EPR and how the company has approached this transition as an integral part of its broader sustainability strategy. The brewer described EPR not simply as a regulatory requirement, but as a strategic framework that supports operational efficiency, environmental responsibility and long-term value creation.

For SABECO, packaging has been identified as the starting point of its circular economy journey. Rather than viewing packaging solely as a protective layer, the company has redefined it as a lever for innovation. Packaging design is guided by three core principles: conserving resources, reducing environmental impact and optimising recyclability. As a result, 100 per cent of SABECO’s product packaging is currently reusable or recyclable, ensuring alignment with existing recycling infrastructure.

Alongside this, the company has continuously optimised material usage. One notable initiative involved reducing aluminium thickness from 0.245mm to 0.240mm, which lowered the combined weight of cans and lids from 14.5 grams in 2019 to 12.2 grams in 2024, equivalent to a 15 per cent reduction in material use. These improvements have contributed to saving thousands of tonnes of aluminium annually, reducing energy consumption in transportation and cutting greenhouse gas emissions.

At the event, Larry Lee, SABECO’s deputy general director said the company views EPR as a strategic lens rather than a compliance checklist. He noted that SABECO believes the circular economy does not end at recycling, but begins with redefining the concept of waste itself, encouraging businesses to rethink how materials can retain value beyond initial use.

SABECO has also emphasised collaboration as a critical element in implementing EPR effectively. Since 2023, the company has been a member of PRO Vietnam, working with regulators and industry partners to develop closed-loop recycling models covering consumption, collection, recycling and reprocessing. In parallel, SABECO has stepped up community engagement and education on waste sorting and responsible consumption, while embedding social messages such as age restrictions and “Don’t drink and drive” warnings into its packaging.

In terms of production waste management, SABECO has cooperated with partners across its supply chain to reuse all spent grain and yeast as animal feed, convert 1,816 tonnes of sludge from wastewater treatment into organic fertiliser, and apply the 3R principles—Reduce, Reuse and Recycle—across its manufacturing system. In 2024, the company reported that 64.22 per cent of total waste across its operations was recycled or reused.

EPR implementation has also been closely aligned with SABECO’s broader ESG agenda. In 2024, the company reduced bottle cap usage by 22.61 per cent and cut rice consumption by 2.29 per cent. Energy use was optimised to 87.95 MJ per hectolitre, while greenhouse gas emissions were reduced by 9.3 per cent compared with the previous year. According to industry observers, such results demonstrate how environmental responsibility can go hand in hand with operational efficiency and product quality.

These efforts have been recognised through various domestic and international awards, including being named among Vietnam’s Top 50 Best Listed Companies, receiving the Customer Experience Initiative of the Year – FMCG award at the Asia Awards 2024, and earning more than 40 international awards related to product quality and sustainability since 2019. In 2024, SABECO was also included in the VCCI CSI100 ranking of the Top 100 Sustainable Businesses.