Suntory PepsiCo’s Secret to Sustainability: Localisation and Personnel Investment

The establishment of strategic beverage alliance between Suntory and PepsiCo in Vietnam has brought us with valuable opportunities. Specifically, with strong financial supports from two parent groups, we have had five modern plants in Vietnam. In addition, this is also an opportunity for us to introduce global brands of the two parent companies to Vietnam to better serve consumer needs and tastes. Besides, we utilise predominant advantages of our parent groups in product research and development (R&D) to provide consumers in Vietnam with best-quality products.

 

With these opportunities, SPVB still maintained its solid development and growth in the soft drinks market in Vietnam in 2015 even though this was a very difficult year. Nevertheless, the beverage market is currently posing a plenty of challenges that force us to innovate and diversify our beverage products, constantly update products and promotion programmes to consumers, create employment opportunities for local workers, and develop new technologies.

 

SPVB is very successful with six key drinks of the beverage industry. Constant market share expansion and annual certification of “Vietnam High Quality Goods” demonstrate consumer confidence in the company’s brands. Currently, the company has more than 450 distributors and more than 1,900 sales employees working every day to ensure our products present in 400,000 direct outlets and 700,000 wholesale dealers. All our products are available in 1.1 million of 1.3 million fast-moving consumer goods (FMCG) retail outlets across Vietnam.

 

To do this, we first of all invest in best product research and development to build consumer confidence in Vietnam. Secondly, we invest in infrastructure and use our global vision to create best products in the market. Finally, we focus on human resources development strategy with training programmes like “Management Trainee” and “Graduate Trainee”. In particular, to succeed in Vietnam, it is important that we understand consumer cultures and tastes and build fine relationships with local retailers. Besides, we need to demonstrate our corporate social responsibility, fully comply with tax policies, and fulfil the company’s standard values - Taking care of the society and environment where the company is active.

 

Sustainable development and responsibility to the community are noted in SPVB’s future development orientation. Presently, in addition to supplying high-quality products, SPVB also carries out many community-oriented activities according to our business philosophy “Sharing the Profit with Society.” We believe that if we contribute to creating a sustainable, healthily competitive and developing business environment, we will have more chance to have our own sustainable growth. For years, SPVB has been actively involved in supporting small and medium-sized enterprises (SMEs) in Vietnam and helping business leaders raise their competences. And, this requires a new mindset - they must have motivations to overcome challenges and seize opportunities, especially when Vietnam joins the AEC and the TPP in the future.

 

 

I am very impressed with Vietnam’s rapid economic development. Constantly improved investment and business environment has made Vietnam an attractive destination for investors. We are very optimistic about the Vietnamese market. The Government of Vietnam has actively supported multinational corporations. Therefore, we have completed a US$250 million investment as pledged and will invest more in the future.

 

I think that the Government of Vietnam can achieve core objectives as announced previously when it focuses on three areas of “strategic renovation” from now until 2020, that is to say, perfecting economic environment and building legal system framework; improving infrastructure, especially transport system; and developing high-quality human resources. Besides, Prime Minister of Vietnam, Mr Nguyen Xuan Phuc, was committed to building a transparent, strong and united government which will act resolutely, innovatively and effectively and work the most to serve the people.

 

We have closely cooperated with chambers of industry and commerce of many countries in Vietnam to jointly contribute to the common goals of developing sustainable business community and contribute to Vietnam’s economic development in general. The Indian Business Chamber in Vietnam (INCHAM) is our partner.

 

As an official member of INCHAM, SPVB has had practical supports for the development of the Indian business community and contributed to promoting Indian cultures in Vietnam. Besides, SPVB has partnered with the Indian Consulate to raise charity funds for disabled children in Vietnam. We hope to continue play a role in promoting the comprehensive cooperation between India and Vietnam in the future and hope the Embassy of India will tell us more about what we can do.