New Hawaii coffee law hurts Kona businesses

HONOLULU (HawaiiNewsNow) – At the heavenly Hawaiian coffee farm in Holualoa, about 15 minutes from downtown Kona, workers pick fresh coffee beans and the field coordinator harnesses the drying power of the sun.

Hawaii’s coffee industry, half of which grows in Kona, is facing changes due to a new state law.

Law 198 aims to combat fraudulent labeling and increase the mandatory percentage of coffee grown in Hawaii to at least 51% by 2027.

“If you want to call it Kona, Ka’u, Kauai, Maui coffee, at least 51% coffee has to be that origin,” said David Bateman of the Hawaii Coffee Association.

The industry has claimed for decades that the famed bean’s reputation has been diluted because a 10 percent Kona blend could be called Kona.

“Then you get a fake flavor, if you will. It’s not Kona. “It’s Brazil or it’s Vietnam,” Bateman said.

The coffee industry supported the new law, even though they said it was actually hurting business.

“We did the right thing for Kona. We did the right thing for Hawaii with the right things for farmers, but you can do the right thing and it can still have an impact on you, and that’s the effect of reducing demand,” said Bill Myers, CEO of Heavenly Hawaiian .

The new law comes after a lawsuit filed by coffee farmers in Hawaii against counterfeit Kona was settled last year. Myers says major coffee buyers are now wary of buying Kona.

“It scared them away from Kona coffee because they saw that they were vulnerable to these lawsuits,” Myers said.

Experts expect Kona coffee prices to fall 20% from historic highs compared to two years ago. Myers expects the market to stabilize. Therefore, the best news right now is for coffee drinkers.

“If you just enjoy a cup of Kona coffee in the morning, these are great times for you because it’s reasonably affordable,” he said.

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