Hawaii's Largest Coffee Plantation Faces Uncertainty With Lease Set To End In March – CoffeeTalk

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Kauaʻi Coffee Co., a major visitor attraction and one of the island’s largest agricultural employers, has addressed the Kauaʻi County Council about its land lease expiration in March. Kauaʻi Coffee senior advisor Wayne Katayama addressed the council, stating that Brue Baukol Capital Partners is not willing to renew the lease. The company employs 141 workers across farming, processing, roasting, sales, and administrative operations, making it the largest coffee grower in the United States. The company has never owned the land it farms, leasing it since the late 1980s when former landowner Alexander & Baldwin transitioned the acreage from sugar to coffee. In 2011, the company’s operations were acquired by Massino Zanetti Beverage USA, a global coffee company that also owns Maxwell House and Hills Bros., and helped expand Kauaʻi Coffee into an internationally distributed brand.

A&B sold over 18,000 acres on Kauaʻi to Colorado-based investment firm Brue Baukol Capital Partners for $74 million in June 2022, including the South Shore agricultural land where Kauai Coffee has its farm. The lease expires in March, and Kauaʻi Coffee Co. presented a statement in December 2025 underscoring its commitment to the community and the environment. It remains unclear what Brue Baukol Capital Partners’ intentions are for the land. In August 2024, CBRE listed “Kaua’i Coffee Lands” for sale, offering 4,713 acres, including nearly five miles of ocean-front and 695 acres designated by the West Kaua‘i Community Plan for urban development. The property also had access to retain the Kauaʻi Coffee brand intellectual property rights. Without a lease extension, all 141 employees will be terminated in the next few weeks, with the exact date depending on how the company divests itself of the operation.

The coffee farm on the island’s West Side manages around 3,000 acres and produces between 1 and 2 million pounds of green coffee annually. Visitors, including Rose and Ron Eisworth, who visit the farm annually, enjoy a farm tour that explores the land, learns about the coffee-making process, and meets the resident animals. The tour concludes with a visit to the farm’s gift shop and museum, along with a fresh cup of coffee. Rose and Ron Eisworth hope the new landlords renew the lease and don’t give up. They returned to Kauaʻi Coffee in December 2025 after learning about the lease issues on social media. Kauaʻi Coffee’s owner, Katayama, stated that they will continue seeking resolution but warned of a cliff on March 28, 2026. The fully integrated nature of the operation, which took over two decades to build, would be difficult to replicate under a compressed timeline.

Kauaʻi Coffee is facing a complex lease dispute with a major infrastructure and financial stability issue. The company harvests 10 to 12 million pounds of coffee cherries each season, which are processed into 1 to 2 million pounds of green coffee at ʻEleʻele. The company is seeking a severance package for its employees, who are part of the International Longshore and Warehouse Union Local 142 union. If no agreement is reached, the employees may be available for unemployment or displaced workers, and they may partner with federal government programs. Council members are concerned about job losses, loss of institutional knowledge, water management systems, and community ties. The process is superficial and requires long-term agricultural vision, major infrastructure, financial stability, and intellectual capital. The company is working to find a win-win solution to the situation.

Kauaʻi has a workforce of 30% with over 10 years of experience, including some with decades of service. The company’s employees are closely connected to their communities and are familiar with their families and work. Kauaʻi Coffee’s open-air truck driver, Roger Kanoho, led a one-hour coffee tour on Dec. 23, 2025, where visitors learned about coffee planting, growth, and production. Councilmember Felicia Cowden questioned the landowner’s ability to continue specialty coffee operations after Kauaʻi Coffee’s departure. However, Councilmember Addison Bulosan expressed support for Kauaʻi Coffee and urged for a resolution that would allow more time for negotiation or transition, including the possibility of relocating operations. The ideal situation would be an off-ramp of two years or more, allowing for a smooth transition without devastating employees or the community. The company is also considering a serious discussion on the asset purchase agreement, as there is a section of their lease that includes termination conditions.

The issue has been brought to the attention of Kauaʻi Now, a councilmember who expressed his hope that the landlord will find an amicable solution to the issue. He emphasized the importance of Kauaʻi Coffee as part of the island’s culture and identity. Councilmember Arryl Kaneshiro expressed his support for Kauaʻi Coffee, stating that it is difficult to remove the coffee company and run a similar one. He also noted the support of many employers and union representatives, who are attending to support their employees. The outcome of the lease extension remains uncertain, but the hope is that the landowner will maintain the important agricultural operation on the island.

Read More @ Kaua’i Now

Source: Coffee Talk

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