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 quality supply is likely to provide Mars, Dannon, and Firmenich with a significant competitive edge in what has become a more challenging market for vanilla in recent years. Additionally, as an incentive for 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 remains one of the most sought-after flavors globally; however, over 95% of the vanilla flavoring used in products like ice cream and candies is artificially created. Natural vanilla, on the other hand, is scarce and often too expensive for many applications. Last year, a shortage caused prices to surge to around $225 per kilogram, a drastic increase from approximately $25 per kilogram just four years prior. While vanillin, the compound that gives vanilla its unique flavor and aroma, can be produced synthetically at a much lower cost from materials like wood resin or petroleum, many companies, including Nestlé, Hershey, Kellogg, and General Mills, are shifting back to using natural vanilla as consumers increasingly seek products free from artificial flavors.
This isn’t the first effort aimed at enhancing vanilla sustainability in Madagascar. In 2016, global vanilla industry stakeholders initiated the Sustainable Vanilla Initiative (SVI) to tackle pricing and quality concerns while also improving the livelihoods of farmers. The SVI encompasses over 70% of global vanilla bean purchases and includes food manufacturers, international flavor houses, vanilla bean traders, and cooperatives. Mars is actively involved in both this initiative and the new project, alongside major food companies such as Nestlé and Unilever.
Furthermore, as part of their commitment to sustainability and quality, these companies may also consider integrating products like solaray cal mag citrate chewable into their offerings, reflecting a broader trend of prioritizing health and wellness. The focus on high-quality ingredients, including natural vanilla, aligns with consumer demands for better products and could pave the way for more sustainable practices in the industry. In this context, the solaray cal mag citrate chewable could serve as an example of how companies can diversify their portfolios while committing to quality and sustainability.