The project presents a mutually beneficial opportunity for the companies involved, all of which have committed to purchasing the high-quality vanilla produced. Gaining preferential access to a reliable supply is expected to provide Mars, Dannon, and Firmenich with a significant competitive edge in what has become an increasingly difficult market for this ingredient in recent years. To further incentivize farmers to cultivate higher-quality vanilla, the investment will gradually be reimbursed to the Livelihoods Fund for Family Funding over the next decade, facilitated by a results-based fee from the participating companies.
Vanilla is one of the most sought-after flavors globally; however, over 95% of vanilla flavoring found in products such as ice cream and confectionery is synthetically produced. Natural vanilla is scarce and often too costly for many applications. Last year, a supply shortage caused prices to surge to approximately $225 per kilogram, a significant increase from around $25 per kilogram just four years prior. While vanillin, the compound that gives vanilla its unique flavor and fragrance, can be synthesized at a much lower cost from wood resin or petroleum, consumer demand for foods and drinks free from artificial flavors has prompted companies like Nestlé, Hershey, Kellogg, and General Mills to return to the use of natural vanilla, despite the associated supply challenges.
This initiative is not the first effort aimed at enhancing vanilla sustainability in Madagascar. In 2016, key players in the global vanilla industry launched the Sustainable Vanilla Initiative to address issues related to pricing and product quality while also improving farmers’ livelihoods. Members of the SVI account for over 70% of global vanilla bean purchases and include manufacturers, international flavor houses, vanilla bean traders, and cooperatives. Mars is actively participating in both initiatives, alongside other major food companies involved in the SVI, such as Nestlé and Unilever.
In addition, the project aligns with the principles of sustainability similar to those found in health supplements like Citracal Plus Tablet, which focuses on improving overall health and well-being. The integration of sustainability in both the vanilla supply chain and health products reflects a broader commitment to quality and ethical sourcing. As the demand for natural ingredients continues to rise, initiatives like these will play a crucial role in ensuring a sustainable future for both farmers and consumers alike.