At the Kauaʻi County Council meeting on Wednesday, Wayne Katayama was in much better spirits than the last time he addressed the members six months ago with nearly two years of land lease negotiations stalled between the owners of Kauaʻi Coffee Company and its landlord, Colorado- based investment firm Brue Baukol Capital Partners.
“If my memory serves me correctly, in January, my opening statement was that the message I was to present to you could not be overstated,” said Katayama, senior advisor of the coffee company located in Kalaheo.
He recalled the company issuing Worker Adjustment and Retraining Notification notices to employees shortly afterward, calling it “a pretty traumatic event.” Its current lease was about to expire in March and it looked like the biggest coffee company in Hawaiʻi might have to go out of business.
But the crisis was adverted on June 25, when Brue Baukol Capital Partners, which bought the 3,100-acre plantation from Alexander & Baldwin in 2022, and Kauaʻi Coffee’s parent company, Massimo Zanetti Beverage USA, completed a 15-year land lease agreement.
At the request of Council Chair Mel Rapozo, leaders of both sides of the agreement provided a briefing. Kauaʻi Coffee Co. is important to the island for two reasons: it is one of the largest agricultural employers and it is a major visitor attraction.
Katayama said the successful lease renewal resulted from two parties committed to reaching an agreement and credited elected officials, the Hawaiʻi Farm Bureau, the International Longshore and Warehouse Union, residents and customers for helping build momentum behind the negotiations.
“What I have today is that, on behalf of all the employees of Kauaʻi Coffee and their families, a mahalo to all of you for your kind words of encouragement and your absolute support to make this happen,” Katamaya said.
He said the coffee company is planning a holiday for the community to celebrate the agreement, with details to be announced at a later date.
Trinette Kaui, a vice president of land assets with Brue Baukol Capital Partners, said the lease ensures continued agricultural use of the property while recognizing the importance of the workforce and the land to Kauaʻi.
Darlene Yamasi read a statement from James Priestley, vice president of Brue Baukol Capital Partners, who was unable to attend the meeting: “We’ve always believed that businesses are about people first, and we understood that this period of uncertainty weighed heavily on many of you and your families. …
“To the community of Kauaʻi and the consumers of Kauaʻi Coffee, thank you for making your voices heard. Thank you for reminding all of us how important Kauaʻi Coffee is, not only as a business, but as an employer, an agricultural institution, and part of the identity of this island.”
Priestley also said preserving agriculture remained a central objective because much of the property is designated by the state as important agricultural land.
“Today’s successful agreement represents much more than the signing of a lease,” Kaui said.
“It’s a reaffirmation of our shared commitment to agriculture, our community and the future of this island.”
Kaui also reflected, through tears, about her own involvement with the property’s agricultural history, noting that she worked on the transition following the closure of McBryde Sugar Co. in 1996 and later participated in the original long-term lease signed with Kauaʻi Coffee in 2011.
“Today, I stand here deeply humbled as Brue Baukol Capital Partners and Kauaʻi Coffee begin another chapter together with the signing of this new 15-year lease,” she said.
“This accomplishment belongs to all of us, and we look forward to continuing this partnership as responsible stewards of these lands and as committed members of this community.”
Brue Baukol began investing on Kauaʻi in 2021, including McBryde Resources, Kukuiʻula Development, Kukuiʻula Realty and The Club at Kukuiʻula.
Katayama said the coffee company retained its workforce through the uncertainty but paused hiring and scaled back some normal agricultural operations during the first three months of the year.
The company currently employs about 126 workers and is seeking to hire an additional 30 to 40 employees as operations return to normal, he said.
Katayama said last year the company produced one of its strongest coffee harvests. While this year’s crop experienced some setbacks because regular farming schedules were interrupted during the lease negotiations, he said fruit development appears promising, and the company expects another good harvest.
“Itʻs always been, I think, prideful, you know, for us to have Kauaʻi Coffee there,” Councilmember Aril Kaneshiro said. “It’s one of the biggest ag businesses we have on the island… and it would have been a real loss to to see it gone.”
Rapozo said the greatest satisfaction was knowing workers now have greater certainty about their future: “In this case, there was so much to lose. It was those employees that was the focus.”
Community members interested in working with Kauaʻi Coffee Co. can click here.
