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Economic Priorities

PRODUCT QUALITY AND SAFETY

Our commitment to ensuring the traceability, safety and quality consistency of our products through compliance with Food Safety standards and regulations set by local governments and industry bodies as well as requirements by the Carlsberg Group Quality.

Stakeholder Groups Most Concerned:

Government; Customers; Government Agencies and Regulators

Why It Important:

In pursuit of perfection, maintaining and improving product quality and safety is essential to upholding the well being and satisfaction of our consumers and customers, in addition to building trust in our brands and company. Additionally, product quality and safety is the most important material matter for Carlsberg Malaysia.

We prioritise this area by adhering to the Carlsberg Group’s policies and ensuring that all ingredients, materials and technologies that we utilise to brew our beers and produce packaging are safe for consumption.

Our Approach:

Our approach and standards in food safety are aligned with all applicable food safety laws, regulations and standards including:

  • Malaysia Food Act 1983, Malaysia Food Regulations 1985
  • ISO 9001:2015 as per international standards of quality
  • HACCP MS1480:2019 as per food safety standards
  • The Carlsberg Brewery Quality and Food Safety Policy
  • The Carlsberg Brewery Quality Manual

We are also guided by our Carlsberg Operational Manual (COM) which requires us to conduct an annual assessment on quality.



Progress/Achievements:

In our dedication to ensuring the production of safe consumables, we undertook the following initiatives throughout the year to maintain the high-quality standards of our products:

With the implementation of stringent practices, we did not experience any cases of non-compliance with regulations and codes of conduct concerning the health and safety impacts of our products and services.

In 2023, there was no instances of consumer-related product recalls related to food safety and quality. There was, however, one voluntary product withdrawal as a result of the product not meeting our stringent packaging standards.

Going Forward

In our ongoing commitment to upholding product quality and safety, we have outlined additional controls and plans to implement more timely and stringent measures in order to deliver continuous improvement such as to:

RESPONSIBLE ADVERTISING AND MARKETING

Our commitment to advertising and marketing alcoholic and non-alcoholic products ethically to consumers of legal purchasing age in a responsible and appropriate manner, across all on-trade, off-trade and e-commerce channels and events, both on-ground and online.

Stakeholder Groups Most Concerned:

Consumers; Customers; Industry Associations and Regulators

Why It Important:

We continue to uphold our commitment towards ZERO Irresponsible Drinking by promoting responsible consumption of our products to consumers of legal purchasing and/or drinking age via various marketing platforms. Promoting responsible drinking is crucial as we prioritise consumer well-being, adhere to local laws and regulations, and safeguard our licence to trade.

Additionally, initiatives that are developed to inculcate the value and importance of ‘enjoyment in moderation’ build trust between our stakeholders and our operations, fostering a positive corporate image for the Carlsberg Malaysia Group as a reputable and responsible brewer. We want to ensure that we continue to fulfil our social responsibility by being part of the solution as opposed to contributing to the problem.

Our Approach:

We are guided by our Marketing Communication Policy (MCP) which supports our commitment towards responsible advertising and marketing. The Policy reflects the high standards we have set for ourselves as a brewer and an established industry player. It outlines our values and methods of communication to ensure that we reach the right people with the right messages. 

In addition, our operations in Malaysia also adhere to the revamped Content Code 2022 issued by the Malaysian Communications and Multimedia Commission to respect local sensibilities, practices and culture. Responsible Advertising and Marketing is further reinforced by principles of responsible marketing outlined by both the Confederation of Malaysian Brewers and the Singapore Beer Industry Association, both trade associations that we are founding members of.

Progress/Achievements

In 2023, we continued to ensure that all our Above-the-Line (ATL), Below-the-Line (BTL) and digital marketing initiatives are governed by the MCP and complies with local regulations and guidelines for each market.

Our ongoing initiatives include:

Enforcing Our MCP Across Stakeholders

The Group’s MCP is applicable to all employees, affiliated agencies and contract workers who are communicating through or on behalf of our brands. While the policy is adopted from the Carlsberg Group, we ensure that it is adapted accordingly to the local markets for relevance and compliance.

During agency pitches or when we onboard a vendor, they are given a complete briefing of our MCP and a copy is shared for reference.

In 2023, we have widened our coverage by including a new media agency, our current serving social media and creative agencies as well as all our existing Key Opinion Leaders (KOLs).

In Malaysia, we ensure that all our alcohol-related advertisements, posts and videos across platforms conform to the below, among other guidelines, outlined in the MCP:

  • Avoid targeting audiences below 21 years old and Muslims
  • Contain a responsible drinking message, forward advice notices as well as the ‘Don’t Drink and Drive’ logo and are age-gated wherever possible
  • All KOLs are at least 25 years of age and also reflect their age physically
  • Additionally, the majority of these KOLs’ followers must be at least 21 years of age and are non-Muslims

 

To map out a more effective course for responsible marketing, we have established a standard operating procedure, detailing our print, online and digital marketing materials review process. The chart captures the process practised in validating the marketing material before it is released through the approved platforms, ensuring consistency and compliance to departmental policies.

Our Legal Department performs a biannual audit to enforce stricter controls, ensuring compliance of all media platforms and assets with our MCP. Any gaps identified during the audit must be promptly rectified by the respective brand teams. Subsequently, the Legal Department verifies the closure of identified gaps. As of 2023, there are no outstanding issues.

With ample due diligence in our process, we have reported zero cases of non-compliance with regulatory requirements and are not implicated in any complaints or legal proceedings associated with marketing or labelling.

Going Forward

We will continue to observe and practise responsible marketing by ensuring that new employees, agency partners and contract workers are aware of the MCP and the relevant regulations and guidelines. We have also set plans to roll out the Responsible Drinking Policy and guidelines to our distributors and their employees who manage the sales and distribution of our products.

THREATS TO COMMERCIAL FREEDOM

We are dedicated to addressing potential threats to our operations in Malaysia arising from illicit trade of alcoholic products. Illicit alcohol not only poses a threat to us but also to the food and beverage industry, as smuggled products pose a risk to public health and constitute the evasion of tax.

Stakeholder Groups Most Concerned:

Government Agencies and Regulators; Investors; Consumers and Customers

Why It Is Important

The illicit alcohol trade poses a major challenge to the food and beverage industry, affecting brewers, distributors and retail establishments. In addition to financial implications, illicit alcohol trade results in considerable tax losses for the government.

More critically, illicit alcoholic beverages lacking regulation and quality standards pose health risks to consumers. The presence of unregulated and unapproved substances can result in severe consequences such as critical medical conditions and even death.

Death By Fake Alcohol https://theaseanpost.com/article/death-fake-alcohol

Addressing this problem requires a united effort across the industry and regulatory bodies to safeguard commercial freedoms and uphold the integrity and sustainability of the entire value chain.

We strongly believe that an integrated public-private collaboration against the hazardous effects of illicit alcohol can be a force multiplier in curbing illicit trade, tackling illicit economies and reducing government revenue losses.

 

Our Approach

The Malaysian beer industry operates within a framework of stringent regulations, aiming to tackle challenges such as alcohol misuse and reduction of alcohol-related issues. These regulations are designed not only to safeguard public health but also to foster local economic development, shield vulnerable populations and encourage responsible consumption.

 

 

Addressing the issue of illicit alcohol trade relies heavily on collaborative efforts between the public and private sectors. We commend the Malaysian government’s proactive stance in establishing the Multi-Agency Task Force, specifically targeting smuggling activities related to cigarettes and alcohol. This demonstrates a commitment to tackling the root causes of this issue.

 

Our plans and actions are consistently guided by our Group’s Public and Government Affairs Manual, ensuring that all our engagements align with local regulations and laws. By doing so, we contribute to a responsible and sustainable industry that prioritises the well-being of communities and promotes ethical business practices.

Progress/Achievements

We are committed to taking proactive measures to safeguard our commercial freedom by actively addressing key industry concerns surrounding illicit alcohol and public health risks resulting from unregulated contraband products.

In Malaysia, our engagement is centred on fostering a supportive and proactive regulatory environment that benefits all stakeholders. Some of our dedicated efforts include:

Going Forward

As a responsible brewer committed to fostering positive change, we recognise the importance of collaboration with government stakeholders and the public in addressing the challenges posed by the illicit alcohol trade. We are committed to playing a proactive role in creating a safer and more regulated environment within the beer manufacturing industry. We will actively engage in dialogues and partnerships to contribute our industry expertise and resources.

RESPONSIBLE SUPPLY CHAIN MANAGEMENT

We are committed to responsible and sustainable supply chain management, promoting ethical practices, reducing environmental impact and ensuring long-term resilience and value creation throughout our value chain.

Stakeholder Groups Most Concerned

Suppliers and Vendors; Industry Groups; Investors; Government Agencies and Regulators

 

Why It Is Important

Doing business responsibly is a fundamental aspect of our strategic priorities. This practice is seamlessly integrated into our ESG programme, Together towards ZERO and Beyond (TTZAB). We also ensure that our responsible sourcing programme empowers us to achieve transparency in the aspects of labour, ethical, environmental, and health and safety conditions.

We continue to extend our responsible business practices to our vendors, fostering an ecosystem that shares the same values and approaches. As a result, we are able to work with reliable and ethical business partners while prioritising focus and resources on material matters such as health, safety and wellness.

Our Approach

Our suppliers and vendors are required to adhere to our Supplier and Licensee Code of Conduct. The policies address crucial areas like labour and human rights, health and safety, environmental sustainability, business ethics, competition and fair trade and data protection. Vendors are provided with guidelines in our purchase orders for expected conduct, including adherence to a code of conduct and a policy on gifts and gratuities. Additionally, we also screen all of our vendors with our Third-Party Screening Tool.

 

Progress/Achievements

In upholding responsible sourcing and supply chain management, the following initiatives are conducted annually:

Going Forward

SEDEX stands for Supplier Ethical Data Exchange, which is the world’s largest data platform for supply chain assessment where it can assist suppliers to identify, manage and assess social and environmental risks with its screening tool. The screening tool comprises four pillars which have been designed to meet a number of objectives which includes promotion of responsible sourcing within the supply chain and improve the efficiency and effectiveness of evaluation using a common methodology and allowing for the exchange of assessment data with their stakeholders.

The four pillars cover Labour Standards, Health and Safety, Environment and Business Ethics.

 

The platform also empowers operators to:

  • Pre-screen suppliers through its risk-assessment tools
  • Use a standard audit methodology
  • Share assessment results

We will continue to engage and progress with our suppliers. In the coming year, we are working with our Global team to obtain the SEDEX membership for the two key suppliers who attended the AIM Progress event with us.