Kauai Coffee Company faces uncertain future as land lease nears expiration

Uncertainty Looms for Kauai Coffee Company as Land Lease Nears Expiration

A brewing conflict between America’s largest coffee producer and a Colorado-based real estate investment firm has placed hundreds of jobs and thousands of acres of agricultural land in jeopardy on Hawaii’s Garden Island.

Kauai Coffee Company, a cornerstone of the island’s economy since the late 1980s, is facing an uncertain future as its land lease approaches expiration at the end of March. The company, which manages 4 million coffee trees across 3,100 acres and employs approximately 140 workers, has been unable to secure a lease renewal after nearly two years of negotiations with landowner Brue Baukol Capital Partners (BBCP).

Earlier this month, Kauai Coffee notified state and county officials that it will permanently cease operations and lay off 136 employees between March 14 and March 28. “KCC is being forced out of business,” the company stated in its Worker Adjustment and Retraining Notification Act filing.

However, BBCP has offered a contradicting narrative. “If Massimo Zanetti does not renew its lease, our plan is to keep people working as we move forward,” said James Priestley, BBCP vice president. “Every employee who wants to keep working on the coffee farm will have that opportunity. Our focus is on caring for the land, supporting local jobs and being responsible stewards for Kauaʻi for the long term.”

The conflicting statements have created confusion and anxiety among employees and community members. Kaua’i County Council Chair Mel Rapozo plans to meet with both parties this week to gain clarity on the situation.

“My concern is the employees,” Rapozo said. “This state of uncertainty—or not knowing what’s going to happen—is a lot for them. I’m hopeful there will be some resolution.”

The dispute has deep implications for the island’s agricultural heritage and economy. According to Wayne Katayama, a senior adviser for Kauai Coffee and its former president, 30% of employees have been with the company for over a decade, with three having served for 50 years. Most employees are local residents, with 90% living in Kauai’s Westside communities.

“All our employees are in the communities,” Katayama told the county council in January. “You’re probably related to some of them, you probably are friends with some of them, you know their families, and, certainly, you’ve come into contact with them through their community outreach.”

The situation has raised broader concerns about the future of agriculture on Kauai. BBCP, which purchased the land from Alexander & Baldwin in 2022, has listed 4,713 acres of the Kauai Coffee lands for sale. The listing highlights nearly 5 miles of oceanfront real estate and approximately 695 acres that were designated for urban development within the West Kaua’i Community Plan.

However, according to the Kaua’i Planning Department, the 2020 West Kaua’i Community Plan actually removed a “provisional agriculture” designation after determining that “upzoning those lands was not appropriate.” With the exception of 48 acres already in the state urban district, all Kauai Coffee field lands are designated as agriculture or Important Agricultural Lands.

The International Longshore and Warehouse Union Local 142, which represents about half of Kauai Coffee’s workforce, has expressed deep concerns about the situation. “This issue extends well beyond the coffee workers at Kauai Coffee Company and to the question of whether Kaua’i gets turned into a playground for investors,” said Union President Chris West. “In the absence of transparency, the risk to working families is real and profound.”

BBCP has formed a Kauai Coffee Transition Task Force to manage any potential transition. Priestley stated that while the property has technically remained listed for sale, “a sale hasn’t been an active focus for more than a year.” He added that BBCP’s “priority has always been to ensure this land has the right long-term, agricultural steward.”

Beyond its economic significance, Kauai Coffee is known for its sustainable farming practices. The company carries certifications from Fair Trade USA, Rainforest Alliance, and Non-GMO Project, and its employee-led Fair Trade Committee has returned $373,000 to the island community since 2023.

As the March deadline approaches, local officials are limited in their ability to intervene in what remains a private business dispute, leaving employees and community members anxiously awaiting resolution.