Kauai Coffee Company, the largest coffee grower in the United States, says it will cease operations and lay off nearly all its 136 employees by the end of March unless its land lease with property owner Brue Baukol Capital Partners is renewed. The company’s lease is set to expire at the end of March after nearly two years of stalled negotiations, leaving the fate of an operation that has been a community fixture for decades uncertain. The Colorado-based investment firm that owns the land says it remains committed to keeping the company’s workers employed and the land in agricultural use.
The dispute underscores the tension between private land investment and agricultural preservation on Kauai, where local workers fear a shift from farming to development. The outcome will determine the future of hundreds of working families on the island’s West side, where plantation roots run deep and employment options are limited.
The Lease Dispute and Company Response
The company’s uncertain future became public in December when Wayne Katayama, a senior adviser for Kauai Coffee, announced at the company’s annual open house that there would be no extension or renewal of its lease. On Jan. 7, Katayama and 20 employees briefed the Kauai County Council at the request of County Council Chair Mel Rapozo, who said he heard from employees concerned about their future.
“My concern is the employees,” Rapozo said. “This state of uncertainty — or not knowing what’s going to happen — is a lot for them. I’m hopeful there will be some resolution.”
Earlier this month, the company notified state and county officials of its plans through a Worker Adjustment and Retraining Notification Act notice. “KCC is being forced out of business,” the notice said.
Brue Baukol Capital Partners contested the company’s characterization, saying it is committed to retaining Kauai Coffee employees who want to continue working the land and to keeping the property in agricultural use.
“If Massimo Zanetti does not renew its lease, our plan is to keep people working as we move forward,” James Priestley, a BBCP vice president, said in a statement. “Every employee who wants to keep working on the coffee farm will have that opportunity. Our focus is on caring for the land, supporting local jobs and being responsible stewards for Kauaʻi for the long term.”
BBCP has formed a Kauai Coffee Transition Task Force to plan for any transition in alignment with community, operational and regulatory considerations.
A Workforce With Deep Roots
Kauai Coffee has been a fixture on the island’s West side since the late 1980s. The company employs roughly 140 people who manage the operation across its 3,100 acres.
According to a company handout distributed in December, most employees are local residents. Ninety percent live on the West side, and many trace their family roots to the island’s plantation era.
During the council meeting, Katayama told council members that 30 percent of the company’s employees have been with Kauai Coffee for more than 10 years. Three employees have worked there for 50 years.
“All our employees are in the communities,” Katayama said at the meeting. “You’re probably related to some of them, you probably are friends with some of them, you know their families, and, certainly, you’ve come into contact with them through their community outreach.”
About half of Kauai Coffee’s employees belong to the International Longshore and Warehouse Union Local 142. On Jan. 13, union President Chris West said the organization was deeply concerned about the situation and what it represents for working families across Kauai.
“This issue extends well beyond the coffee workers at Kauai Coffee Company and to the question of whether Kaua’i gets turned into a playground for investors,” West said. “In the absence of transparency, the risk to working families is real and profound.”
The Land Question Behind the Lease
The dispute reflects shifts in Kauai’s landscape and ownership. Massimo Zanetti Beverage Group, which has owned Kauai Coffee since 2011, leases the land from BBCP, a Colorado-based private equity real estate investment firm. BBCP bought the property from Alexander & Baldwin, a long-established agricultural company, in 2022.
Today, BBCP owns more than 18,500 acres on Kauai. That includes the 1,000-acre Kukui’ula luxury development on the island’s south shore.
In 2024, the firm listed 4,713 acres of the Kauai Coffee lands for sale. According to the sale listing, the acreage includes nearly 5 miles of oceanfront real estate from ‘Ele’ele to Kukui’ula to Po’ipū and about 695 acres that had been designated for potential urban development under an earlier land-use framework.
Priestley said BBCP evaluated several options for the land, including identifying other coffee operators, farmers, or agricultural-use tenants to take over operations. “While the property has technically remained listed, a sale hasn’t been an active focus for more than a year,” he said. “Our priority has always been to ensure this land has the right long-term, agricultural steward.”
He added that BBCP apologizes that its previous listing language did not reflect the most current planning framework for the land. “Our intent has never been to suggest development beyond what is allowed or supported by County plans,” he said.
The majority of Kauai Coffee’s field lands are now designated as agriculture or Important Agricultural Lands, according to the Kauai Planning Department. In 2020, when the West Kauai Community Plan was adopted after community engagement, the county determined that upzoning of the coffee lands was not appropriate.
What’s at Stake
Kauai Coffee’s operations carry certifications from Fair Trade USA, Rainforest Alliance, and the Non-GMO Project, which indicate safe working conditions, sustainable farming practices and environmentally friendly operations. The company’s farming methods have enabled it to retain more water and use less herbicides, according to its website.
The company’s employee-led Fair Trade Committee has given $373,000 back to the island since 2023, supporting community initiatives and local development.
Kauai Mayor Derek Kawakami has been involved in discussions with representatives of both the farm operator and landowner, according to the county. His role has been to stay informed and understand potential impacts to workers and the West Kauai community. Since the lease is a private matter, the county’s ability to directly intervene is limited.
State Representative Dee Morikawa, whose district includes the Kauai Coffee lands, said the Legislature likewise has limited tools to intervene. Morikawa said Kauai Coffee has been a good neighbor and an important provider of jobs for the area and has engaged in sustainable farming practices.
“Regardless of who the owner of the plantation is, making sure they are taken care of is my priority,” Rapozo said of the workers.
The next month will determine whether the company’s employees, some of whom have devoted decades to the operation, will be able to continue their work on the land they have helped cultivate, or whether the uncertainty will force a transition to a new model of operation or, potentially, land use altogether.