Emerging Giant: Conquering challenges, celebrating success

Most readers around the world might not be familiar with the Tan Hiep Phat Beverage Group (THP), but that might well change in the next few years. Founded in 1994, it has grown rapidly to become Vietnam’s leading privately held fast-moving consumer goods (FMCG) company, competing with beverage industry giants in Vietnam and 20 international markets, including the US, Canada, France, Australia, Japan, Korea and Taiwan. In 2012, THP turned down a $2.5 billion acquisition offer from a multi-national company, preferring to stay true to its own long-term vision. THP’s emphasis on locally grown raw materials, high-quality, nutrient-rich beverages and a commitment to sustainability appeals to a growing customer base of health-conscious consumers in Southeast Asia and beyond. In 2019, the company achieved FDA certification from the US Food & Drug Administration allowing THP to export their low acid beverages to the ambient temperature distribution US market.

“From the start, our focus has been on understanding consumer trends and tastes at the local level, while producing beverages that meet or exceed the strictest international standards,” explains Nguyen Van Tu, General Director Manufacturing at THP. “A big part of our success so far is our network of world-class partners.” THP’s 30^th anniversary celebration in October 2024 included a Strategic Partner Conference, where many of the industry’s leaders – including GEA, Brenntag, Takasago and SAP – came together to sign comprehensive strategic partnerships with THP focused on research, development and realizing THP’s lofty goal of becoming Asia’s leading food and beverage company.

Cutting-edge technology for industry-leading growth

In 2009, THP became the first company in Vietnam to invest in aseptic technology^[1] with the purchase of GEA’s innovative ECOSpin aseptic filling machine. THP has since installed nine additional aseptic production lines from GEA, spearheading the growth and modernization of Vietnam’s beverage industry. THP’s product portfolio includes Vietnam’s leading beverage brands – Zero Degree Green Tea with Lemon, Dr. Thanh Herbal Tea, Number One Energy Drink and Number One Soya – all developed with a focus on natural ingredients and nutritional value. Massimo Nascimbeni, Blowing and Filling Product Manager, GEA Filling & Packaging, explains why GEA aseptic lines have made such an impact for THP. “Aseptic bottling allows producers to maximize nutritional content and retain the purity, natural color and flavor of beverages without the use of preservatives. The end products can be stored at room temperature for up to 18 months without refrigeration, allowing distribution at ambient temperature – and further eliminating the need for preservatives.” GEA’s aseptic lines can also service a number of different beverages with a single platform. “This technology is designed to help producers expand both their production and distribution – and to capitalize on a growing market of sensitive beverages geared towards increasingly health-conscious consumers,” says Nascimbeni.

Clean means green

THP’s forward-looking investments in production technology have also enabled significant progress in reducing water, energy and plastic use in its operations. “A big part of our partnership with GEA is working with them to continuously improve performance in terms of production capacity, quality and sustainability. GEA’s commitment to further developing their aseptic solutions has enabled THP to stay on the industry’s leading edge,” says Nguyen.

“Our machines continue to evolve,” explains Nascimbeni, who highlights some of the improvements GEA has made over the years to help THP reach its sustainability targets. “The newer machines reduce the time required for cleaning and sterilization cycles by nearly 50% over the first models. Production managers can now count on 220 hours of continuous production in aseptic conditions without intermediate cleaning and sterilization, which is more than a 50% longer than the first models. In addition, our latest nozzle design for the rinser significantly reduces the amount of water required to rinse the bottles after sterilization, and the newer machines do not need to be installed in a clean room with forced ventilation, which is resource intensive.” The newest platforms, including the Aseptic Filling Bloc ECOSpin2 Zero, are certified with GEA’s AddBetter label for resource-efficient solutions. “THP benefits directly from these efficiency gains, recovering their utilities during production to reduce both electricity and water usage, and minimizing their overall environmental impact,” says Nascimbeni. So far, THP has reduced water consumption by up to 91% and uses 31% less energy for bottling. They have also reduced the weight of their bottles by 50%, which reduces the amount of plastic used in the production process and cuts CO2 emissions per bottle by 20%. 

With Vietnam among the countries pledging to achieve net zero emissions by 2050, THP has embraced a circular economy approach to gradually reduce resource use and greenhouse gas emissions. Today Vietnam’s top producer and bottler of healthy beverages, THP remains future-oriented, with ambitious revenue growth and sustainability targets. As part of its newly signed comprehensive strategic partnership with GEA (October 2024), THP aims to continue leveraging GEA aseptic technology to further reduce the use of virgin plastic, increase the use of recycled PET, and continue reducing natural resource usage overall. “We aim for green production – from choosing leading environmentally friendly technology, to operations that minimize use of natural resources, including reducing energy consumption and water usage,” says Nguyen. “And we believe that working with GEA will allow us to achieve this.”

Sources

[1] https://www.youtube.com/watch?v=PORFZoTVrmg