The project represents a mutually beneficial opportunity for the companies involved, which have pledged to purchase the resulting high-quality vanilla. Gaining preferential access to a reliable supply is expected to provide Mars, Dannon, and Firmenich with a substantial competitive edge, especially as vanilla has become an increasingly difficult ingredient to source in recent years. To further encourage farmers to cultivate better 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 world’s most cherished flavors, yet over 95% of the vanilla flavoring used in products like ice cream and candy is synthetically produced. Natural vanilla is scarce and often too costly for many applications. Last year, a supply shortage caused prices to soar 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 produced more cheaply through synthetic means, like wood resin or petroleum, consumer demand is shifting. More people are seeking foods and beverages that lack artificial flavors, prompting companies such as Nestlé, Hershey, Kellogg, and General Mills to return to using natural vanilla, despite the associated supply challenges.
This is not the first effort aimed at enhancing vanilla sustainability in Madagascar. In 2016, members of the global vanilla industry established the Sustainable Vanilla Initiative (SVI) to tackle issues related to pricing and product quality while also improving the livelihoods of farmers. The SVI members account for over 70% of global vanilla bean purchases and include food manufacturers, flavor houses, traders, and cooperatives. Mars is actively participating in both this initiative and the current project, alongside other major food corporations like Nestlé and Unilever.
Additionally, the project aligns with a broader trend toward health-conscious products, similar to the growing popularity of calcium citrate magnesium hydroxide zinc sulphate and vitamin D3 tablets. Just as consumers are becoming more aware of the ingredients in their food, they are increasingly interested in the supplements they take, including those that promote overall wellness. This evolving consumer mindset underscores the significance of sourcing high-quality ingredients, whether it be natural vanilla or essential vitamins and minerals, to meet the demands of a discerning market.