Cooperation with Suppliers

At the Asahi Group, we have a range of procedures in place for communicating with our suppliers. With these procedures, we strive to share information with them, raise their awareness, and implement joint initiatives with them to solve the issues they face.

Initiatives for Quality Enhancement

The Asahi Group carries out quality enhancement initiatives based on the Asahi Group Sustainable Procurement Principles and Asahi Group Quality Principles.
We strive to share quality awareness and initiatives with suppliers by regularly conducting Supplier Quality Audits and holding QA Meetings for Asahi Group suppliers.
If we discover any defects in raw and packaging materials provided by a supplier, we identify and manage the defective products in an appropriate manner and work with the supplier to probe into the cause of the problem and prevent its recurrence in our efforts to solve it together with the supplier.

In addition, we evaluate each supplier over a year-long period on a range of aspects including quality, technological capabilities, supply stability, and CSR initiatives. We share the results of the evaluation with each supplier and discuss future initiatives with them.
In order to promote these activities in a Group-wide manner, we regularly hold Global Procurement Conferences and Group Procurement Section Conferences, which are attended by Group companies.

Efforts to reduce environmental burden

The Asahi Group engages in various efforts together with our suppliers to reduce the environmental burden of our supply chain.

Partnering with Italian Farmers

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Italy's Birra Peroni is a subsidiary of the Asahi Group’s European headquarters, Asahi Europe and International As a company whose history goes back over 170 years, Birra Peroni produces 5 million hectoliters of beer annually at their breweries in Italy. The Peroni brand of beers is made of 100 percent Italian malt, and in order to stably procure high-quality malt they partner with over 1,500 local farmers.
Birra Peroni has consistently adopted revolutionary functions and systems to build a supply chain that can benefit and fulfill the needs of all stakeholders ranging from farmers to consumers. One example of such systems is the orzobirra.net online platform made available to farmers. It ensures that farmers can harvest high-quality malt thorough the integrated management and sharing of information ranging from farmers' expert knowledge, weather forecasts, soil quality, and crop types. This platform not only enables the stable production of high-quality materials, it also serves to reduce the burden on the environment, including through more efficient use of fertilizers and agricultural chemicals, and the optimization of soil tillage operations.

Development of the lightest domestically-produced 350 ml aluminum beer cans

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Asahi Breweries, Ltd. has developed the lightest domestically-produced 350 ml aluminum beer cans (according to Asahi Breweries survey) in cooperation with four can manufacturers as part of its efforts to develop environment-friendly packaging.

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Sharing and Raising Awareness with All Suppliers

The Asahi Group is committed to working together with our suppliers to achieve sustainability in society in line with our corporate environmental and social responsibilities. To this end, we actively engage in information sharing and consciousness-raising with our suppliers.

Asahi Group Basic Procurement Policy Workshop

The Asahi Group holds information sessions on a procurement policy for the senior management of our suppliers every year, where we set out the Asahi Group Sustainable Procurement Principles and the Asahi Group Supplier Code of Conduct. Explanations of a variety of other Group policies are also provided at these sessions, including the Asahi Group Human Rights Policy, the Asahi Group Environmental Principles, and the Asahi Group Responsible Drinking Principles. In addition, we provide an overview of the current domestic and overseas operations of the Group and future plans. The aim is to deepen supplier understanding and promote initiatives and cooperation to realize these policies.

Supplier training

In pursuing activities with our suppliers to fulfill our environmental and social responsibilities, we conduct supplier training aimed at enhancing their understanding of the Asahi Group’s policies on the environment and society, as well as the current social climate concerning ESG factors.

Training sessions are usually held during the Asahi Group Basic Procurement Policy Workshop, but because the 2020 workshop was cancelled due to the novel coronavirus pandemic, we mailed materials to our suppliers to go over and asked them to submit comments. Materials were sent to 900 suppliers.

In addition, during the on-site investigations based on CSR questionnaire results, we checked the specific environmental and social actions taken by our suppliers and provided detailed advice toward improvement such as by presenting examples of actions taken by other companies. In these ways, we are supporting our suppliers’ capacity-building efforts.

Supplier Quality Audits

The Asahi Group regularly implements quality audits of suppliers to assess how they address a range of parameters, including process control, quality standards, hygiene management and employee safety, against targets.

Supplier evaluations

We conduct annual surveys of our major raw and packaging material suppliers in Japan. The surveys are used to assess suppliers’ ability & risk on eight points: Management, ESG (Environment/Social/Governance), quality, cost, delivery times, technical capabilities, supply stability, and responsiveness. The assessment results are provided to each supplier, and regular communication with specific suppliers about needed improvements is undertaken when necessary.

Approaching new suppliers

The Asahi Group selects new suppliers by comprehensively assessing opportunity & risk of items such as quality, price, delivery dates, and supply stability as well as the supplier's technology, stance on compliance and the environment, and respect for human rights. Upon the initiation of dealings, the Group explains the Asahi Group Supplier Code of Conduct to the suppliers and asks them to comply with it, and then concludes a trade contract agreement clearly prescribing compliance with the relevant laws.

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