Impact of Orangina Value Chain

Research by Ema Montfajon, Filippo Trifone, Greta Zocchi, Jula Gekle and Maya Ben Abdelkader | Bachelor Students from ESCP Business School | Edited by Komoneed

Orangina Value Chain

The value chain of Orangina, a carbonated soft drink brand, includes the following stages:

1. Infrastructure: The Orangina company is owned and managed by Suntory Beverage & Food Ltd., which is listed on the prime market of the Tokyo Stock Exchange and is an Audit and Supervisory Committee company. The Suntory beverage and food Europe is managed by Peter Harding. Suntory Beverage & Food Europe was established in 2014 and is one of the world’s leading food and beverage companies
2. Human Resources Management: Orangina (part of the Suntory Group Beverage & Food Ltd.) promotes Human Rights. The company encourages and fosters a healthy lifestyle for their employees. They adopt Inclusive and flexible mindset as the COVID-19 pandemic challenged the traditional views of the people at home and at the office. Not only that, but this group also cares deeply about diversity, equity, and inclusion. However, these things are easily said to the public. Proof of this is rather difficult.
3. Technology Development: Orangina put into place policies and initiatives to be as ethical as possible in the European Market. Orangina has recently faced concern about the production of their product and makes sure that their product is as sustainable as possible by providing their customers with the best drinks possible. On their website, they show their initiatives to produce the healthiest products possible and improve their quality by reducing sugar and increasing natural ingredients. The Suntory Group but more specifically Orangina values recycling, sustainability, water conservation and climate change. Recently, Orangina put into place efforts and initiatives to reduce their environmental impact
4. Procurement: Orangina uses a range of raw materials to produce its carbonated drinks in the European market. There are many raw materials used such as sugar, high-fructose corn syrup, natural and artificial flavours as well as fruits from its suppliers. However, the Suntory’s group wants their suppliers to adhere to their philosophy which is to “create harmony with people and nature”
5. Logistics: Regarding their logistics, Orangina (Suntory Group) have established targets. By 2030, they are expecting to have an 100% sustainable PET bottles as well as completely recyclable. The flow of the goods is then controlled by the company between the production sites and the retail locations
6. Operations: Orangina is committed to reducing its environmental impact across the European market and globally. In fact, they have fixed targets to attain by 2030 concerning climate change, water waste and sustainable products
7. Marketing and Sales: Orangina used different advertising strategies to promote their brand and mission to the people. Their goal is to at the same time bring satisfaction to people by offering a range of choices and help them to have a healthier and more conscious lifestyle. To do that, Orangina uses digital advertising and focuses on modern and visual effects which shows modernity and fun. In addition, they also, contacted celebrities such as Martin Solveig to promote their products where their advertisement related to any type of person. Suntory also collaborated with charities and local organizations to improve their environment and help people in need
8. Customer Service: Suntory is focused on the well-being of its customers. Therefore, it offers many ways to reach out via their website, social media, and email to report and issues or ask for any inquiries

Each stage in the value chain contributes to the creation of value for Orangina, and the company strives to optimize its operations in each stage to maximize efficiency and profitability.

Environmental Issues

Orangina, part of the Suntory group, like many other beverage companies, faces several environmental concerns due to its operations and the production of its products. Some of these include:

1. Packaging Waste: Concerning that packaging, most of the soft drinks industry has been built around convenience for their customers. However, today there are other priorities to make these bottles and containers as sustainable as possible to reduce waste, being able to recycle and promote sustainability. The brand would focus on having less and better materials. While loose goals are stated in the Sustainability Reports, they are vague and seem unrealistic
2. Carbon Emissions: Reducing the environmental footprint throughout the products lifecycle is very important as many of these businesses have major impacts on the planet
3. Water Use: Water is part of everything they do as a business, therefore, protecting this resource for the future generations is a key part of their environmental initiatives. That is why Orangina is looking to innovate to reduce their water consumption. There is a future spotlight on the respect of water
4. Product components: To have a sustainable business, the components of the drinks are where to start. One of the major objectives of companies is to provide the best drinks possible to its consumers and to do that, it needs to improve the taste as well as the quality to have the healthiest drinks possible. This would mean reducing sugar and increasing natural ingredients

These environmental concerns highlight the need for Orangina and other beverage companies to take steps to minimize their impact on the environment and promote sustainability in their operations.

Environmental Initiatives

Orangina, as a part of Suntory group, has several environmental policies and initiatives in place to reduce its impact on the environment and promote sustainability. The Suntory group constantly works on identifying new growing issues and trying to integrate them into their framework.

In fact, in 2018, they launched a sustainability strategy across all markets, including the DACH one going from environmental to social issues.

The company focuses on “Sustainable Production Practice” to reduce its waste materials, water usage, gas emissions and energy consumption, improve recycling rate and its ingredients Some of these include:

1. Recycling: By 2030, the Suntory group is committing to a 100% sustainable packaging and would be the first company to do so and are on track to deliver against their target of 100% recyclable packaging by 2025
2. Water Conservation: Regarding water conservation, the group is aiming for a 20% reduction in water use across their operations by 2025 through more efficient practices and by investing in water ecosystem regeneration projects
3. Product sustainability: Suntory group is looking to reduce sugar and meet their target of a 35% reduction by 2025. In addition, reducing their use of artificial colours and flavours. In fact, in 2021 they were able to achieve an 81% reduction in the use of artificial colours and a 71% reduction in the use of artificial flavours
4. Climate Change: The Suntory Group has multiple objectives concerning carbon reduction. They have a target of a 50% reduction by 2023 to then move to a net zero by 2050 and would like to switch to a 100% renewable energy. To do that they are looking to relocate and optimize their warehouse where most of their vehicle fleet

These policies and initiatives demonstrate Suntory group’s and therefore Orangina’s commitment to sustainability and its efforts to reduce its environmental impact.

As a part of Suntory, the company is committed to reducing its environmental impact and promoting sustainability in all its operations, including those in the DACH market. Some of its initiatives include reducing water consumption, promoting recycling, and implementing sustainable products with its suppliers.

By taking these measures, Orangina is working to minimize its environmental impact in Europe and therefore the DACH market and contribute to a more sustainable future.

However, in my opinion, like many other brands, Orangina does have good initiatives to become as sustainable as possible, but most of the time they do appear as environmentally friendly but have negative environmental impacts.

Not only that, but the objectives and numbers they present are hardly attainable in this short amount of time and all their operations have a big negative impact on the environment. Therefore, even though their aim is to become eco-friendly, it is also important to take into consideration the broader impact of their actions.

Orangina itself does not have environment issues as their products are natural fruits that grow on trees, but it’s their operations that cause problems.

These initiatives ensure the Suntory group can provide high quality products and implement quality assurance measures. However, there was very limited data and sources were available, hence, the information given is partly about the Suntory group in general and not the DACH market.

Furthermore, results might be lacking detail and hence, Orangina can be regarded as less important and informative than the other companies. This means that these goals are not formatted and worded in a specific and goal oriented way.

Sources Link

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• WestportWiki on Wikipedia