The document discusses sustainability practices at Carlsberg Uzbekistan brewery. It identifies opportunities to improve sustainability, such as eliminating plastic bottles, decreasing glass bottle thickness, and increasing recycling. A lifecycle analysis identifies areas for sustainability improvements like renewable energy use and increased rail transport. Implementing suggested changes like these could benefit the environment, consumers, and company profits through decreased costs and improved brand image.

1. MirazizBazarov Миразиз Базаров - 2011
Sustainability in Carlsberg Uzbekistan
By
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(2,244 words)

2. MirazizBazarov Миразиз Базаров - 2011
1.0 Introduction
The aim of this project is to promote the concept of sustainability as a win-win situation
within a business organisation that should be chosen of my own cultural and social background.
One of the examples where the concepts of sustainability can be implemented in my
country of origin is the Brewing industry of Uzbekistan. To add, the tour to Carlsberg
Uzbekistan Brewing Factory shed some light to the process of brewing. During the tour, the
design of locally produced beer “Baltika” and “Sarbast” and process of producing the beer was
described in details and increased by interest in the sphere of brewing industry, especially the
topic of sustainability in brewing industry.
Since my overall knowledge of sustainability has recently been growing as the result of
learning the range of the sustainability issues I would like to suggest some recommendations for
improvement of design of the production of Carlsberg Uzbekistan company that will be also
improving its sustainability on the one hand, and will be beneficial on other hand, via improving
the image and brand value of a company.
2.0 Carlsberg Uzbekistan - Background
Carlsberg Uzbekistan is an Uzbek branch of the of Baltic Beverages Holding owned by
the Carlsberg Group, 4th largest brewery group in the world employing more than 40,000
employees worldwide, which was founded as a Danish brewing company founded in 1847
(Carlsberg Group 2011, Chiasson 2009, UzCarlsberg 2011). In turn, Carlsberg Uzbekistan was
established in 2006 initially with the brand name of Sarbast Plus Joint Venture. The construction
of unique and innovative brewery located in Tashkent was finished in 2007. The capacity of
brewery is 1.45 million of hectolitres of beer annually, it produces beer under such brands as
Sarbast Original, Special and Strong, Tuborg Green, Baltika 3/7/9 and soft drink "Grain Land".
Taking into account the leadership of Carlsberg in brewing industry of Uzbekistan (it is
the number one producer of beer since the launch in 2007, although there is plenty of small local
brewing companies), and leadership in the sphere of corporate responsibility and promotion of
sustainable development, it was decided that promoting the concept of sustainable design as a
win-win situation will influence the view of other local brewing and maybe food producing
companies on the sustainability in business in general, thus reshaping the whole food industry of
Uzbekistan.

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3.0 The Current Problem
One of the most prominent practices that prevent increasing sustainability in UzCarlsberg
is the design and recycle of the packaging, namely, bottles and boxes. One problem is
widespread use of plastic bottles for packing beer. The other problem is the thickness of the glass
bottles used for producing local versions of Baltika and Tuborg beer, as well as for locally
branded Sarbast beer.
Here below thick glass bottles and plastic bottles used for packaging Srabast beer.
3.1. Plastic bottles
Starting from the summer of 2008 the traditional plastic bottles were replaced by the
innovative beer bottles named "PET SUPER PAC". Despite of the fact that SUPER PAK is
defences the bottle from the penetration of oxygen and sunlight, which could affect taste of the
drink, it is still made from plastic, and during the tour it was said that it takes several decades to
degrade. Nowadays, you can often find empty plastic bottles of beer produced by UzCarlsbers in
any area of Uzbekistan. This, together with the low level of sustainability awareness
demonstrated by Uzbek population, results in the situation when large piles of plastic bottles can
be found not only in urban area, but even in natural reserves of Uzbekistan.
3.2. Thickness of the glass bottle
The glass bottles that are used for packaging locally produced beer are much thicker
while comparing with the imported bottles of beer. This is true not only for the locally branded
“Sarbast” beer, but also for local versions of “Baltika” and “Tuborg green”, especially
paralleling with their imported versions. Producing thick bottles takes more recourses energy and
thus money comparing to nowadays universally accepted bottles with thin glass (Peel 1999).

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3.3. Low rate of return of glass bottles
One of the sustainable actions that were done by UzCarlsberg is the policy of returning
glass bottles, when the empty bottles are returned to the producer and then, after disinfection and
appropriate treatment, re-used again. This was rather innovative solution rarely used in
Uzbekistan before and, after the example of such an effort was demonstrated in practice, many
representatives of Uzbek food industry also adopted such a policy. However the problem here is
the low rate of the return of glass bottles. According to information received during the tour to
the factory, less than 40% of the glass bottles are returned and re-used again. Thus, this
innovations is not is not working at full capacity.
3.4 Packaging
During the packaging of glass bottles, thick and unrecyclable plastic boxes are to put the
bottles in and deliver them to the retailers. They are not often returned to the UzCarlberg and are
just thrown in a landfill.
The transportation of plastic bottles has also shortcomings in terms of sustainability. One
example is the packaging of a set of plastic bottles in a big plastic bag and then packaging this
set into the thick carton again.
4.0 Sustainable Practices in Uzbek Brewing Industry
There is a range of the sustainable practises that are used by the companies in the
brewing industry of Uzbekistan, some of them are considered to be innovative and rare for local
producers, others are widely implemented. In any case, concerning the sustainable practices,
UzCarlbers is considered to be an example to follow for many beer and food producers in
Uzbekistan. Thus, the discussion of the sustainable practices adopted in Uzbek beer and (to
certain degree) food industry will help to understand the general situation there.
4.1. Active re-usage of glass bottles
Active re-usage of glass bottles is now common for Uzbek food and drinks producers.
For example, in many cases the customer receives part of the prices paid if he or she returns the
bottle to the retailer. Then, retailers return the glass bottle to the producers so that they are able
to re-use bottles.
4.2. Implementation of innovative bottling lines

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More and more producers in install the latest equipment imported from abroad, and
European equipment and bottling line produced by KHS company for UzCarlberg is one of the
examples. The reason here is the growing quality of the products demanded by customers
because of the increasing competition between the producers. The side benefit of such practices
is the increasing sustainability of the producing process, since implementing new equipment
means than less recourses and energy are utilized, less CO2 is emitted, and less waste is resulted
therefore.
4.3. Increasing emphasis on social responsibility
Increasing emphasis on social and partly environmental responsibility is the distinct trend
of local brewing industry. One example is a range of measures taken by the procures of beer
which were called “An Honest Seller” with the main reason of drawing public attention to ban
the sale of alcohol to minors since the majority of the retailers are not complying with the ban.
Another example is charity to benefit of local environmental organizations, since the
majority of the local brewing companies and some part of food producers supported the
charitable aid Botanical Garden in Tashkent and Eco Forum of Uzbekistan.
Also, the major part of beer producers took their part in the charity event called “Support
Japan”, when small portion of the profit was allocated to the charity in favour of Japan. Other
support includes the assistance to refugees from Kyrgyzstan, charity to the blind and disabled
children and scholarships for students.

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5.0 Sustainability Objectives for Carlsberg Uzbekistan
During the consideration of the sustainable practices that can be implemented in Carlsberg
Uzbekistan, the range of the objectives should be taken into account so that the company could
implement the practises in its favour and thus resulting in the "win-win" equation.
 The sustainability practices that will be implemented at UzCarslberg should not decrease
the quality of the final product – beer and soft drinks, so that increasing sustainability
should not be implemented at the price of quality
 The sustainability efforts in the fields of decreasing waste and resources used should
result in considerable decrease in costs, thus the management would be able to justify
then in terms of profit.
 The practises should increase the corporate image and brand value of the company and
promote the sustainability in all the industry in general
 The practices should be realistic and affordable, and, even better, increase the profit of a
company
6.0 Ideas for Sustainability – Lifecycle Analysis
The Lifecycle Analysis was used for understanding of how sustainability can be
embedded in UzCalsberg’s process of developing, production and utilization of beer and other
drinks.
Here are the main six areas of lifecycle analysis:
1. Design/conceptualisation
2. Production
3. Transportation
4. Retail
5. Use/maintenance
6. End of Life.
The lifecycle analysis for Carlsberg Uzbekistan is presented below:
6.1 The DesignProcess
The main suggestion that should be implemented at Carlsberg Uzbekistan is radical re-
design of beer packaging and bottles used. One suggestion is total elimination of producing beer
in plastic bottles. According to many local consumers, any beer in plastic bottles is considered as

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“cheap” and with low quality (in spite of the fact that the beer in plastic bottles is of the same
quality”). Thus, the eradication of plastic bottles will enhance the brand image and value of
UzCarlber’s production. Another important recommendation is the implementation of aluminium
cans instead of using plastic bottles, since they are resalable, recyclable and durable (Willaert et
al 2004). Again, this will be evidently beneficial for the producer itself, because the majority of
the local consumers consider imported beer in aluminium can as “cool” and of higher quality,
thus the UzCarlsberg beer in aluminium can will be very popular in Uzbekistan. The last
suggestion is the decrease of the thickness of glass bottles, in order to make them more
resembling to imported beers, which is important for local consumers.
6.2 The Production Process
The production process at the UzCarlberg factory is already considered as “sustainable”
because of the latest equipment installed at the factory. However, usage of renewable source may
increase the sustainability even more, and become an impulse for other producers to implement
the same tools. One example is using solar panels - this measure will be beneficial for the
company because of the large amount of sunny days in Tashkent and cheap solar panels that are
produced by the local factory called “Foton”.
6.3 Transportation
During the transportation of the product from Tashkent to other regions, UzCarlberg
should rely more on the railway transportation, instead of using automotive transportation, thus
decreasing the amount of emissions, but also decreasing the price of transportation. However, it
should be noted, that transportation of a perishable product – beer via the railway system
requires well-designed and implemented distribution, and this is the reason why UzCarlberg do
not use railway till now.
6.4 Retail
The main emphasis in this area should be made on increasing the incentives for retailers
to give the glass bottles back (including money stimulus) and increasing the sustainability
awareness of the customers (provide brochures with appropriate information)
6.5 Use and Maintenance
The policy of returning bottles and aluminium can in future requires increasing the
awareness of consumers about the policy of a company and its benefits, not only through the
brochures, but also though the advertisement or other channels.

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6.6 End of life
After the glass bottles and aluminium cans are returned, they should be re-used and
recycled respectively. However, this requires installation of certain equipment at the factory,
which can be costly for a company.
7.0 Eco-Tracking – The Triple Bottom Line
Now, as the sustainable practices that can be implemented are discussed, the results of
these changes should be discussed therefore. For this purpose the method of the triple bottom
line, this focuses on three main areas: people, planet, and profits, should be used for this analysis.
7.1 People
This part of the metric considers how the implemented practices will be beneficial for the
people involved. Since the new installed equipment is already providing high safety standards,
and employees are treated fairly, the main benefitor will be consumers. They will be happy if
UzCarlsberg will provide locally produced (and thus cheaper) beer, which will not only taste like
imported beer, but also looks like it.
7.2 Planet
The practices that are suggested will be beneficial for the environment, fewer resources
will be used, less emissions and waste will be produced as the result.
7.3 Profits
The main feature of the suggestions that have been recommended to UzCarlsberg is the
fact that they will beneficial for the company on the long run. The reason here is the decreased
costs of producing packages and bottles on the one hand, and enhanced band value and increased
sales as result of eliminating plastic bottles and using aluminium cans on the other. However,
first of all, the consideration over the period of payback of purchased equipment (which will be
installed for the purpose of the implementation of suggested changes) should be done, since the
installation of any major change will cost at least 2 million of Euros, as Rirchmayer (2010) says.
8.0 Conclusions
To conclude, the suggested changes are considered to be realistic, affordable and
beneficial not only for community, but also for the company itself, and should be implemented
as soon as possible.

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9.0 List of References
The following references have been used in the compilation of this report:
 Carlsberg Group, 2011. Carlsberg Group Heritage [internet]. Available URL:
http://www.carlsberggroup.com/Company/heritage/Pages/default.aspx . Viewed on 19
November 2011.
 Carlsberg Uzbekistan, 2011. About Carlsberg Uzbekistan [internet]. Available URL:
http://www.carlsberguzbekistan.uz/Company/history/Pages/company.aspx . Viewed on
19 November 2011.
 Chiasson G, 2009. Carlsberg Canada Chooses GJP [internet]. Available URL:
http://www.pubzone.com/newsroom/2009/3x090130x090839.cfm . Viewed on 19
November 2011.
 Demaid A and Paul Quintas, 2006. Knowledge across cultures in the construction
industry: sustainability, innovation and design, Technovation, Volume 26, Issues 5-6,
Pages 603-610,
 Elkington J, 1994. Towards the Sustainable Corporation: Win-Win-Win Business
Strategies for Sustainable Development [internet]. Available URL:
http://subversion.assembla.com/svn/sweetmutuality/papers/Elkington%20-
%20Towards%20the%20Sustainable%20Corporation%20Win-Win-
Win%20Business%20Strategies%20for%20Sustainable%20Development%20-
%201992.pdf. Viewed on 19 November 2011.
 Esty D C and Winston A S, 2006. Green to Gold, How Smart Companies Use
Environmental Strategy To Innovate, Create Value, And Build Competitive Advantage.
 Lewis, 2007. Sustainable Packaging Redefined [internet]. Available URL:
http://www.sustainablepack.org/database/files/newsfiles/Sustainable%20Packaging%20R
edefined%20Nov%20%202007.pdf . Viewed on 19 November 2011.
 McDonough W and Braungart M, 2002. Cradle to cradle: remaking the way we make
things. North point press. New York
 Peel R, 1999. Ecological Sustainability in the Brewing Industry, Ecological
Sustainability/ in the Brewing Industry, pp.14-22, 105(1)
 Rirchmayer N, 2010. Uzbek Beer Sarbast [internet]. Available URL:
http://www.upakovano.ru/interviews/263 . Viewed on 19 November 2011.
 Von Stamm B, 2005. Managing Innovation, Design Creativity. Chichester, UK: John
Wiley & Sons Ltd. (2nd ed).
 Willaert Ronnie G and Baron Gino V, 2004. Applying sustainable technology for saving
primary energy in the brewhouse during beer brewing, Clean Technologies and
Environmental Policy, Springer Berlin / Heidelberg 7 (1)