Challenges and Opportunities

Quality and safety products are the fundamental schemes of developing products that focus on health and wellness for consumers of all ages. As a leader in the retail and wholesale industry, the Company recognizes the importance of developing internal processes and enhancing the business partners for safer also promote better health and well-being products. This requires traceability systems to demonstrate transparency of the source of raw materials and meet the needs of increasingly health-conscious consumers and better health conditions among the population.

Supporting the SDGs

Targets and Performance Highlights

  • Long-Term Target by 2030

    • 70% of sales come from B2B and B2C products and services that promote health and well-being
  • 2025 Target

    • 50% of sales come from B2B and B2C products and services that promote health and well-being
  • 2025 Performance

    52% of sales come from products that promote health and well-being.

    3% of sales from food products have reduced fat, trans fat, sodium, and sugar.

    6% of sales from food products that increased nutritious ingredients like fiber, vitamins, minerals, phytochemicals, or functional food additives.

    34% of sales from food products are safe for consumers of all ages, from children to elders.

    9% of sales from products and services that promote health and well-being.

    3% of sales from healthier food products by reformulation/renovation.

Management Approach and Value Creation

The Company commits to increasing the percentage of sales from B2B and B2C products and services to help promote health and well-being. to be 70% within 2030 with the collaboration of the whole supply chain. Altogether the fundamental procedure of quality assurance and food safety from upstream to downstream. The Company also educates the consumer knowledge through the QR Code i-Trace application to trace back to production sources, nutrition facts, and healthy recipe.

Product Quality Program Certification

To support farmers and partners, the Company developed the 'MIA' guidelines to ensure agricultural production meets industry standards. Through this system, users can conduct self-assessments to improve production knowledge and deliver quality products to consumers. MIA has since been expanded for internal evaluations at our distribution and retail centers ahead of official certification. Furthermore, the Company continues to implement 'i-Trace' to ensure raw material traceability and provide product nutritional data."

Upstream: Food Safety from Farm Midstream: Control Food Safety Along the Process Downstream: Product Traceability
Standard Makro Lotus’s Wholesale Distribution Center* Retail Distribution Center**
  • Sourcing from farms that complied with Good Agriculture Practices (GAP) standard.
  • Qualified by “MQP” and “Selected”.
  • Over 900 farmers and suppliers have qualified for the standards "MQP" and "Selected".
GMP (1) 166 98 2 1
  • 100% of products sold in Makro and Lotus stores must indicate the origin of production and production lot on the label for customers can trace back the products.
  • i-Trace, which able to trace products in the fresh food category and bakery category, More than 14,000 items are implemented (100% of Under "aro" brand)
  • Smart CoA software to provide proper CoA to customers.
GHP (CODEX) (2) 166 2 3 n/a
HACCP (CODEX) (3) 142 2 3 n/a
ISO 22000:2018 Compliance Certified (5) 166 n/a n/a n/a
ISO 22000:2018 Accredit Certified (5) 13 2 2 n/a
HALAL (6) 11 10 1 0
Livestock - Ok (7) 167 2,446 0 0
Q-Modern Trade (8) 167 0 0 0
Organic Shop (9) 167 0 0 0
TISI Shop (2) 167 226 0 0

(1) GMP no. 420 Certified by the ISO Certification Institute (MASCI)

(2) GHP (Codex) Certified by Bureau Veritas (Thailand) Co., Ltd.

(3) HACCP (Codex) Certified by Bureau Veritas (Thailand) Co., Ltd.

(4) ISO 22000:2018 Compliance Certified Certified by BSI Group (Thailand) Co., Ltd.

(5) ISO 22000:2018 Accredit Certified Certified by Bureau Veritas (Thailand) Co., Ltd.

(6) HALAL Certified by the Central Islamic Committee of Thailand

(7) Livestock – Ok (Livestock standards OK) Certified by the Department of Livestock Development.

(8) Q-Modern Trade Certified by the National Bureau of Agricultural Commodity and Food Standards.

(9) Organic Shop Certified by the National Bureau of Agricultural Commodity and Food Standards

(10) TISI Shop (TIS shop standards) Certified by the Industrial Product Standards Office.

* 167 stores of wholesale business (as of December 31, 2024)

** 2,526 stores of retail business (as of December 31, 2024)

Product Recall

Strategy 2021 2022 2023 2024 2025
Number of recalls issued 10 2 0 0 0
Own Brand 0 0 0 0 0
Supplier’s Brand 10 2 0 0 0
Quantity of products recalled (ton) NA 9.85 0 0 0
Cost impact to company 0 0 0 0 0

During 2021-2025, the product recall occurred from the suppliers' branded which sold in store but never occurred in own brand products. Otherwise, the company's monitoring and developing the highest product standard both own brand and suppliers to protect customer rights and prevent the damage a reputation due to consumer hesitance regarding the safety and reliability of the products.

Furthermore, the recall expenses are monitored as the risk of the company, including sales disruption, increased disposal costs and increased waste, replacement costs, regulatory fees, and fines, amongst others to mitigate risk of liabilities and investment costs.

Health and Nutrition Policy

To promote good health and well-being among the public through the consumption of healthy food, as well as to support physical exercise and access to health services and knowledge.

Target and Result

The Company’s commitment that 70% of the total sales volume of products and services help promote health and wellness. To promote nutritional and healthy food to society with 3 dimensions.