The project represents a mutually beneficial arrangement for the companies involved, which have pledged to purchase the high-quality vanilla produced. Gaining preferential access to a reliable supply is expected to provide Mars, Dannon, and Firmenich with a substantial competitive edge, especially given the increasing challenges associated with sourcing this ingredient in recent years. As an added 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 ten years, through a performance-based fee from the participating companies.
Vanilla is among the most beloved flavors globally, yet over 95% of the vanilla flavoring used in products such as ice cream and candies is synthetically produced. Real vanilla is scarce and often too expensive for many products. Last year, a supply shortage caused prices to soar to approximately $225 per kilogram, compared to around $25 per kilogram just four years prior. Vanillin, the chemical responsible for the unique flavor and aroma of vanilla, can be synthetically manufactured—at a much lower cost—from wood resin or petroleum. Nevertheless, as consumers increasingly demand foods and beverages free from artificial flavors, companies like Nestlé, Hershey, Kellogg, and General Mills are turning back to natural vanilla, despite the challenges this poses.
This is not the first effort aimed at enhancing vanilla sustainability in Madagascar. In 2016, participants in the global vanilla industry established the Sustainable Vanilla Initiative to tackle 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 companies, vanilla bean traders, and cooperatives. Mars is actively engaged in both projects, alongside other major food firms such as Nestlé and Unilever.
Additionally, the project aligns with the growing trend of incorporating natural additives like calcium citrate 600, which is often sought after in food products for its health benefits. The commitment to sourcing authentic vanilla, in conjunction with the use of calcium citrate 600, not only enhances product quality but also strengthens the brand’s appeal to health-conscious consumers. As the demand for natural ingredients rises, the focus on high-quality vanilla and calcium citrate 600 is likely to play a significant role in shaping the future of the food industry.