Kauai Coffee Inks Long-Term Lease After Months of Uncertainty

“Kauai Coffee Plantation” by Harold Litwiler, Poppy is licensed under CC BY 2.0.

Kauai Coffee Co. has signed a new long-term agricultural lease with landowner Brue Baukol Capital Partners (BBCP), ending a months-long standoff that had put more than 140 jobs and the future of the largest coffee farm in the United States in jeopardy.

The deal, announced June 25 by both parties, resolves two years of negotiations between BBCP and Massimo Zanetti Beverage USA (MZB-USA), the Virginia-based parent company that has operated Kauai Coffee since 2011 while leasing the 3,100-acre farm.

All existing positions at the farm and visitor center are preserved under the new agreement, according to the companies. 

The financial terms of the lease were not made public. Kaua’i Now reported that the lease term is 15 years. 

“Kauai Coffee has always belonged to the people of Kauai, and that will never change,” said Brian Kubicki, general manager of Kauai Coffee Company. “Our appreciation for the overwhelming outpouring of support and aloha from our community can’t be overstated.”

Kauai Coffee logo.

In January, Kauai Coffee issued Worker Adjustment and Retraining Notification (WARN) notices to 141 employees, notifying them of potential layoffs due to unresolved lease negotiations. A subsequent WARN notice delayed possible terminations for 136 employees before both Kauai Coffee notices were rescinded on May 1, according to the Hawaii Workforce Development Council.

Kauai Coffee said the new lease allows the company to pursue investments in farm technology, machinery and visitor experiences. The company also said the lease supports the continuation of its Fair Trade Community Development program, which has directed more than $640,000 into community projects through Fair Trade premiums. Kauai Coffee said it plans to maintain its Fair Trade, Rainforest Alliance and Non-GMO Project certifications.

Landowner Brue Baukol, based in Denver, said the lease keeps approximately 3,100 acres designated as Important Agricultural Lands (IAL) under Hawaii state law. The company’s announcement also hinted at future land use changes. 

“The lease also provides flexibility to evaluate additional agricultural opportunities on portions of the property that are not currently under cultivation, supporting broader agricultural activity while maintaining the property’s long-standing role as a productive agricultural resource for the island,” the company stated.

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