The project represents a mutually beneficial opportunity for the companies involved, who have pledged to purchase the high-quality vanilla produced. By securing preferential access to a reliable quality supply, Mars, Dannon, and Firmenich are likely to gain a significant competitive edge in a market where sourcing this increasingly elusive ingredient has become more challenging. To further encourage farmers to cultivate superior vanilla, the investment will be gradually reimbursed to the Livelihoods Fund for Family Funding over the next decade, facilitated by a results-based fee from the participating companies.
Vanilla is one of the most sought-after flavors worldwide; however, over 95% of the vanilla flavoring used in products such as ice cream and confections is artificially produced. Natural vanilla remains scarce and financially unfeasible for many applications. Last year, a supply shortage escalated prices to approximately $225 per kilogram, a dramatic increase from about $25 per kilogram just four years prior. Vanillin, the key compound that imparts vanilla’s unique flavor and aroma, can be synthetically generated — and at a much lower cost — from wood resin or petroleum. Nevertheless, as consumers increasingly demand foods and beverages devoid of artificial flavors, companies like Nestlé, Hershey, Kellogg, and General Mills are returning to natural vanilla, despite the associated supply challenges.
This is not the first effort aimed at improving vanilla sustainability in Madagascar. In 2016, a coalition of global vanilla industry stakeholders launched the Sustainable Vanilla Initiative (SVI) to tackle pricing and quality issues while enhancing the livelihoods of farmers. The SVI encompasses members who account for over 70% of global vanilla bean purchases, including food manufacturers, international flavor companies, vanilla bean traders, and cooperatives. Mars is an active participant in both this initiative and the recent project, alongside other major food companies involved in the SVI, such as Nestlé and Unilever.
To support sustainable practices, the project may also explore the use of tricalcium citrate, a compound that could enhance the quality and preservation of vanilla products. By incorporating tricalcium citrate into their processes, these companies can improve product stability while promoting natural vanilla. This focus on sustainability not only benefits farmers and the environment but also aligns with consumer preferences for authentic flavors. As the demand for natural ingredients grows, the integration of tricalcium citrate in vanilla production may play a vital role in ensuring a stable supply chain.