Canadian Manufacturing

Kahlúa achieves coffee supply chain transparency

by CM staff   

Manufacturing Supply Chain Sustainability Food & Beverage Arabica coffe Kahlúa NGO retail supply chain transparency


Since the project began 704 farmers have been trained, 214 dry toilets built, more than 213,500 coffee trees planted and around 70 women are now in leadership roles.

Kahlúa and the “Coffee for Good” Project (CNW Group/Corby Spirit and Wine Communications)

TORONTO — Kahlúa has mapped all steps of its supply chain to identify any potential risk areas. With 100 per cent of its key ingredient, Arabica coffee, has full traceability and is solely sourced from the remote Mexican farming communities participating in its ‘Coffee for Good’ initiative, launched in 2016.

Over the past six years, Kahlúa has been working with a local NGO, Fondo Para La Pazin four local communities in the mountains of Veracruz, Mexico. Together, they have been investing in better living and working conditions for farmers, establishing agricultural practices, and protecting the region’s biodiversity.

Kahlúa’s milestone comes with brands and retailers facing pressure from their customers to provide greater transparency into their supply chains. Customers are demanding more information on where a product originated and what environmental impact it has had.

“It’s paramount that we have traceability across our coffee supply chain – not only for our own peace of mind, but it’s essential that we provide the same assurances to our retail customers,” said Lynne Millar, Director of Purchasing, Kahlúa.

Advertisement

Having started in Ocotempa, a remote village in the Veracruz mountains, the project focuses on three interconnected themes – social, economic and environmental – to help smallholder farmers move towards a sustainable farming model and improved living conditions.

The project starts by addressing communities’ most basic needs, such as improving access to fresh water and sanitation. Extensive planting is undertaken – replacing old and less productive trees with new disease-resistant plants that are more resilient to climate change. With the advice from experts, the “Coffee for Good” program has provided nutritional packages and fertilizers to nurture young trees – as well as protect the environment and biodiversity.

Since the project began 704 farmers have been trained, 214 dry toilets built, more than 213,500 coffee trees planted and around 70 women are now in leadership roles. The next priority is to certify the work of the farmers and set the standard for two new villages added to the Coffee for Good program.

“We want to go further. Coffee for Good is at the heart of our brand. This year, we have added another two villages to our program, Popocatepec and Mitepec,” said Craig van Niekerk, Global VP of Marketing, Malibu and Kahlúa. “We are also looking at the potential for youth scholarships at local agricultural colleges. In the past, younger generations have been quick to migrate to Mexico City to seek work but through the project’s success, many younger people believe that there is a future in coffee farming after all.”

Advertisement

Stories continue below