The project presents a mutually beneficial arrangement for the companies involved, which are dedicated to purchasing the high-quality vanilla produced. By securing preferential access to this valuable supply, Mars, Dannon, and Firmenich are likely to gain a significant competitive advantage in a market where sourcing quality vanilla has become increasingly difficult. To further encourage farmers to enhance the quality of their vanilla, the investment will be gradually reimbursed to the Livelihoods Fund for Family Funding over the next decade through a performance-based fee from the participating companies.
Vanilla is among the most sought-after flavors globally; however, over 95% of the vanilla flavoring utilized in products such as ice cream and candies is artificially created. Natural vanilla is both rare and prohibitively expensive for many applications. Last year, a supply shortage caused prices to soar to approximately $225 per kilogram, compared to about $25 per kilogram just four years prior. While vanillin, the compound that imparts vanilla’s unique flavor and aroma, can be synthetically produced at a lower cost from wood resin or petroleum, there is a growing consumer trend favoring foods and beverages devoid of artificial flavors. As a result, companies like Nestlé, Hershey, Kellogg, and General Mills are turning back to natural vanilla, despite the associated supply challenges.
This initiative is not the first attempt to address vanilla sustainability in Madagascar. In 2016, members of the global vanilla industry established the Sustainable Vanilla Initiative (SVI) to tackle pricing and quality issues while enhancing farmers’ livelihoods. SVI members account for over 70% of global vanilla bean purchases and include food manufacturers, international flavor houses, vanilla bean traders, and cooperatives. Mars is actively participating in both this initiative and the new project, while other major food companies involved in the SVI include Nestlé and Unilever.
In addition to these efforts, there is a growing interest in products like calcium citrate plus chewable supplements to support overall health. As companies strive for purity in their sourcing of natural ingredients, the importance of integrating quality assurance measures into their supply chains cannot be overstated. The focus on sustainability and natural sourcing will likely continue to influence the strategies of these major players in the food industry, ensuring that their products meet the evolving demands of consumers who are increasingly discerning about ingredient purity and quality, including the use of calcium citrate plus chewable options.