Coffee is one of Hawaii’s most profitable crops, whose value comes from its provenance.
Coffee grown in Hawaii is considered a premium-quality product. People are willing to pay more for it, making the “Hawaii coffee” label a marketing gold mine.
The problem: Who gets the gold? Labels such as “Kona” or “Kau” can be attached to coffee that consists of just 10% of coffee grown in the area — with the other 90% from cheaper sources elsewhere. It’s a good deal for some coffee companies and others who profit from the Hawaii label, while using only a small fraction of the local stuff.
None of this sits well with many Hawaii coffee farmers, who complain that the fruits of their labor are being diluted on store shelves to fatten someone else’s bottom line. After all, it’s hard enough to earn a living as a farmer in Hawaii, especially in the face of destructive pests like the coffee berry borer and coffee leaf rust. It’s understandable that they would want a bigger piece of the pie.
And they have good reason to demand more. Legal action brought by Hawaii coffee farmers against major retailers — including Safeway and Costco — accusing them of selling counterfeit Kona coffee (at higher prices, of course), has resulted in $15.25 million from nine settlements. Some of those settlements required retailers to either abide by state law regarding minimum percentages of Kona coffee or change their labeling.
House Bill 1517 would change the equation significantly. It would require coffee blends labeled or advertised as Hawaii coffee to have a minimum of 20% local product by July. That percentage would increase to 30% by July 2023, and finally to 51% by July 1, 2024. Coffee labeled or advertised “All Hawaiian” would have to consist entirely of green coffee beans grown in Hawaii.
The bill makes sense, for a number of reasons.
First, it would give local coffee farmers a greater economic stake in the grown-in-Hawaii brand. It’s one way the state can advance its goal to support local agriculture, along with helping farmers battle pests.
Second, the 10% standard is not standard. Vermont maple syrup, Idaho potatoes and French Champagne all must contain 100% of the local product to be labeled as such.
Third, a 51% Hawaii coffee blend should give consumers a more authentic taste of the Hawaii product, better distinguishing it from lesser coffees (allowing for variations based on roasting and brewing, of course).
It’s likely that HB 1517 would raise the cost of Hawaii coffee blends, which could reduce sales and shrink the market. Or not. It’s difficult to predict how the customers and coffee buyers will respond. But we would hope that enhancing the integrity and prestige of Kona, Kau and other Hawaii coffees will enhance profits for everyone in the business — including the farmers.