2. Vietnam Beverage Company fined for North Korean sales violations

ThaiBev’s Vietnamese subsidiary is fined US$860,000 by US authorities for breaching US sanctions

The Vietnam Beverage Company Limited (VBCL) has agreed to pay a US$860,000 fine to settle alleged violations of US sanctions, according to the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC). VBCL is a subsidiary of ThaiBev, and is a majority shareholder in Sabeco, Vietnam’s largest brewer and producer of Saigon Special, Saigon Lager, Beer 333 and Lac Viet Beer.

According to the OFAC, VBCL allegedly generated more than US$1 million in sales from beer and spirits exports to North Korea. Between January 2016 and September 2018, the company allegedly issued nearly 50 invoices to North Korean-owned entities. Payments were then made in US dollars through third-party intermediaries based in Hong Kong, China, Turkey, Singapore and the Seychelles.

The transactions triggered sanctions violations under U.S. law, as financial dealings with North Korea are tightly restricted.

Despite the seriousness of the infractions, VBCL avoided a much higher penalty. Initially, the OFAC indicated that the company could have faced fines exceeding US$16 million. However, the final penalty was reduced due to several mitigating factors, including VBCL’s voluntary cooperation, improvements in compliance procedures, and changes in management.

The US Treasury highlighted that VBCL’s case underscores the importance of robust compliance frameworks, particularly for firms operating internationally and engaging with jurisdictions under U.S. sanctions. Companies must ensure that even indirect transactions do not involve sanctioned entities, especially when payments are routed through U.S. financial systems.

VBCL has since taken steps to address gaps in its compliance structure following the investigation, according to the OFAC’s findings.

3. Thailand Craft Beer Week 2024 opens again this October

This year’s event showcases Thailand’s vibrant craft brewing scene, responsible drinking and sustainability

Thailand’s Craft Beer Trade Association has continued running its Thailand Craft Beer Week 2024 event (TCBW2024) for the second consecutive year, from October 18–27. Under the theme “Local Craft, Local Spirit: Every Place Has a Spirit, Every Life Has a Story”, the event aims to showcase a travel style centered on food and drink with a bar-hopping experience, highlighting the country’s different provinces.

According to Prapavee Hematat, secretary and committee of the Craft Beer Trade Association, there are more than 1,000 craft beer outlets and over 1,000 imported brands in Thailand featured during the event, along with more than 200 local brands. Furthermore, TCBW2024 will showcase not only local ingredients and agricultural products, but also diverse cultures and community spirit from small breweries across regions. The festival will feature new product launches, beer and food pairings, live music, talk shows, and workshops.

The event will also focus on sustainability and responsible drinking, partnering with the Alcohol Consumption Problem Solving Foundation for the ‘Drink and Sell Responsibly’ campaign. Environmentally, it has also teamed up with the Thai Beverage Can Company for its ‘Aluminium Loop’ campaign. This uses special limited-edition aluminum cans instead of plastic cups that can be 100% recycled.

“This year, in addition to organising activities alongside campaigns for responsible drinking and sales, and supporting sustainability, we also have partners who are like friends in the craft beer industry to support the festival as usual,” says Hematat. “These include Global Hops Thailand, the distributor of Yakima Chief Hops, which supports hops for the KRUSH on BREW project; Rowat Thai, which collaborates with Weyermann to celebrate their 145th anniversary by providing THB5,000 (USD149) worth of malt to every brewpub; and Craft Components, the official importer of Fermentis yeast, which promotes special beers from various breweries. Additionally, we have Zoul Cider, the latest cider brand that recently won a silver medal in the Flavoured Cider category at the Asia Beer Championship.”