Sustainable and profitable – Coca-Cola bottler Haad Thip is on the path to net zero

Turquoise waters, towering limestone cliffs and dense jungle – if you google Surat Thani, you’ll likely want to immediately book a flight there and set off for adventure. The natural diversity of this region in southeastern Thailand is not only beautiful. It is also home to many local communities that have been farming and fishing for their livelihoods for many generations and provides important habitat for a variety of animal and plant species. For example, countless exotic animals live in Khao Sok National Park: With a little luck, you might cross paths with an elephant or catch a glimpse of gibbons in the jungle canopy.

“We’re very fortunate to live and work in one of the most beautiful places on Earth,” says Jacky Benedetti, Senior Vice President (Supply Chain) at Haad Thip. The beverage plant lies in the western part of Surat Thani, capital of the eponymous region. “To preserve this rich diversity and generate sustainable value for the local communities, we have set ambitious targets within the framework of the UN Sustainable Development Goals.” Together with the Coca-Cola Business Group and other partners in Thailand, Haad Thip has been striving to be a leading corporate group with a focus on responsible and sustainable use of beverage packaging. To this end, the bottler is implementing concrete measures aimed at achieving visible, quantifiable results.

Holistic approach to sustainability

For example, seasonal rice is cultivated on the premises of the plant in Phunphin, and rubber is harvested nearly every day in the surrounding plantation, both of which serve the local communities as a long-term source of income. Moreover, Haad Thip are using a creative solution to mitigate soil erosion, which is a constant problem in southern Thailand due to heavy rainfall and flooding. The beverage maker is planting Vetiver grass, whose roots and stems naturally hold the soil in place. The company received praise from the King of Thailand for this effort in 2015.

“I have seen many production sites around the world over the last 20 years, but this one is the greenest and most impressive of all. There are trees and plants everywhere. Everything is in perfect harmony with nature. In my view, Haad Thip truly is one of a kind,” says Peter Buchhauser of Krones sales for the Asia-Pacific region.

Sustainability is at the heart of our mindset since we started the business in the late 1960s. The logic is to grow sustainably with our communities. Without fledging economy and sustainable environment, we cannot survive either. Maj. Gen. Patchara RattakulCEO of Haad Thip Public Company Ltd.

In 2018, Haad Thip committed to reducing its carbon emissions by 25 percent by 2030 and to achieve net zero emissions by 2050. And that isn’t just on paper, as initial results show: Since the start of the program, the company has already cut its carbon emissions by 14,429 tons (4,252 tons in 2022 alone). Right now, 17 percent of the operation’s energy consumption is covered by renewables, which corresponds to a reduction in carbon emissions by 1,325 tons per year. That’s due in part to the following:

• 9,000 solar panels on the property supply the plant with power.
• Instead of a conventional sludge-based sewage treatment plant, wastewater is treated in an anaerobic and oxidative process that reduces energy consumption by nearly 700,000 kWh per year.
• There are some 10,000 trees on the property, which absorb over 6,500 tons of carbon per year. 
• Since 2019, an initiative to lightweight the company’s packaging has further curbed the plant’s carbon emissions by more than 5,000 tons. It’s expected to save another 1,500 tons of carbon by the end of 2023.
• Thanks to state-of-the-art filling technologies, bottles can be filled at a higher temperature, which in turn reduces energy consumption by 540,000 kWh (or 270 tons of carbon) each year.

A platform has been established that provides dashboards which allow us to measure carbon emissions daily and has become part of our routine. We have to measure first before we can improve. Jacky BenedettiSenior Vice President (Supply Chain) at Haad Thip

Another factor for the filler that’s not to be underestimated is flexibility. This line runs not only Coca-Cola but also Coca-Cola Zero, Fanta Orange, Fanta Strawberry, Fanta Fruit Punch and Sprite in three different bottle sizes. When asked how often changeovers are necessary, Jacky Benedetti replies with a grin: “Too often! We have a lot of different SKUs and so it’s important not to lose too much time in the cleaning and changeover processes.”