The project represents a mutually beneficial opportunity for the companies involved, which have pledged to purchase the high-quality vanilla produced. Having preferential access to a reliable quality supply is expected to provide Mars, Dannon, and Firmenich with a significant competitive edge, especially given the increasing difficulties in sourcing this ingredient in recent years. To further encourage farmers to cultivate higher-quality 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 one of the most popular flavors globally, yet more than 95% of the vanilla flavoring used in products such as ice cream and confectionery is synthetically produced. Natural vanilla is scarce and often too expensive for many applications. Last year, a supply shortage caused prices to surge to approximately $225 per kilogram, a dramatic increase from around $25 per kilogram just four years prior. While vanillin, the compound that gives vanilla its unique flavor and aroma, can be synthesized inexpensively from wood resin or petroleum, there is a growing consumer demand for products free from artificial flavors. As a result, companies like Nestlé, Hershey, Kellogg, and General Mills are returning to natural vanilla, despite the associated supply challenges.
This isn’t the first effort aimed at enhancing vanilla sustainability in Madagascar. In 2016, stakeholders in the global vanilla industry established the Sustainable Vanilla Initiative to address pricing and quality issues while improving the livelihoods of farmers. Members of the SVI 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 current project, alongside other major food corporations like Nestlé and Unilever.
As a side note, just as companies are exploring sustainable vanilla sourcing, there’s an ongoing discussion about the best forms of calcium supplements for the elderly, particularly comparing calcium carbonate vs calcium citrate. This topic parallels the importance of quality and sustainability in food sourcing, as both aim to enhance health and well-being. The challenges faced in sourcing natural vanilla echo the considerations made in choosing the right calcium supplement, as both industries strive to meet consumer demands for quality and sustainability.