It's official: Kaua‘i Coffee Co. will continue to operate on the Garden Isle.
The brand's parent company, Massimo Zanetti Beverage USA, negotiated a new 15-year agricultural lease for the 3,100-acre farm on which Kaua‘i Coffee has been operating with property owner Brue Baukol Capital Partners, allowing operations to continue. The property is located at 870 Halewili Road in Kalāheo.
"Kaua‘i Coffee has always belonged to the people of Kaua‘i and that will never change," General Manager Brian Kubicki said in an announcement Thursday. "Our appreciation for the overwhelming outpouring of support and aloha from our community can’t be overstated. We are proud to say that our roots remain exactly where they belong, our team is entirely secure, and we are actively looking forward to bringing even more job opportunities to our local community as we grow."
According to the announcement, the new lease allows Kaua‘i Coffee to focus on a "forward-looking growth strategy" leveraged by its parent company, itself a part of the global Massimo Zanetti Beverage Group.
"Our role at MZB-USA is to serve as a strong foundational backbone for Kaua‘i Coffee, providing the national scale and robust distribution network needed to protect and amplify what makes this farm so special," Matthew Smith, president of Massimo Zanetti Beverage USA, said in the announcement. "We believe completely in the local team, the community and the land. By securing this long-term lease, we’re ensuring that the local operation has the stability and support it needs to thrive and continue growing the finest coffee in America."
Additionally, the announcement notes, the new lease guarantees the "continuity of Kauai Coffee's core values," which include: Keeping local employees employed under the island leadership team; the stewardship of Important Agricultural Lands and maintaining the farm's global Fair Trade, Rainforest Alliance and Non-GMO Project certifications; continuing the Fair Trade Community Development program; uninterrupted operations at one of the Garden Island's popular visitor destinations; and strategic investments in farming technology, machinery and visitor experiences that are aimed at creating new local positions.
The news comes after months of uncertainty.
WARN, or Worker Adjustment and Retaining Notification, notices distributed earlier in the year signaled potential layoffs, but the original WARN dated Jan. 12 and an additional notice dated March 5 were rescinded May 1.
"Also, as of today, we have no further information to provide you regarding the timing of any possible employee terminations as we continue to negotiate in good faith with the landowner toward a new, long-term, agricultural lease," Kubicki wrote in a letter to the state Department of Labor and Industrial Relations at that time.
A representative of Kaua‘i Coffee told Aloha State Daily that the company has approximately 140 employees, all of whom will be retained with the extension of the lease.
In a statement provided to ASD, Kaua‘i Mayor Derek Kawakami said, "We are happy to hear of the lease agreement between Kaua'i Coffee and BBCP and what this means to our island's community."
"Kaua'i Coffee is not only an iconic part of our island's agricultural heritage, but also an important source of local jobs and economic opportunity," Kawakami says. "We also want to recognize and mahalo the International Longshore and Warehouse Union for their advocacy and hard work for our island's people. We appreciate the commitment shown by Kaua'i Coffee and BBCP to preserving agricultural operations, supporting local families and investing in the long-term success of our community. We look forward to seeing Kaua'i Coffee continue to thrive for generations to come."
In its own announcement Thursday, Brue Baukol Capital Partners, a Denver-based real estate investment firm that develops and acquires commercial properties, says the renewed lease "underscores a shared commitment to preserving agriculture, supporting local employment and responsibly stewarding approximately 3,100 acres designated as Important Agricultural Land."
BBCP says, too, that the lease also provides the flexibility to evaluate other agricultural opportunities on portions of the property that aren't currently being cultivated.
“Kaua‘i Coffee Co. and its employees have been exceptional stewards of these lands for the past 15 years, and we are grateful for the care, dedication, and commitment they have shown, especially throughout the past several months as we worked toward a new agreement,” James Priestley, vice president of Brue Baukol Capital Partners, said in that announcement. “We are excited about the future of Kaua‘i Coffee and proud to support the continued growth of one of Hawaiʻi’s most iconic agricultural brands. This agreement preserves local jobs, keeps these lands in productive agricultural use, and creates new opportunities to explore additional agricultural activities and community benefits in the years ahead.”
According to its website, Kaua‘i Coffee got its start in the early 1800s as McBryde Sugar Co., one of the first sugar farmers in Hawai‘i.
"The transformation from McBryde Sugar Co. to Kaua‘i Coffee in 1987 represents Hawai‘i's largest diversified agricultural projects in the past 50 years," the site notes.
With more than 4 million coffee trees grown on the 3,100 acres, the site says Kaua‘i Coffee is the largest coffee grower in Hawai‘i and the U.S. It's been a part of Massimo Zanetti Beverage Group since 2011.
For the latest news of Hawai‘i, sign up here for our free Daily Edition newsletter.
Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
