New Hawaii coffee law hurting 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 is raking in the drying power of the sun.

Hawaii’s coffee industry, half grown in Kona, is weathering changes because of a new state law.

Act 198 aims to address deceptive labeling, raising the mandatory percent of Hawaii-grown coffee to a minimum of 51% by 2027.

“If you’re going to call it Kona, Ka’u, Kauai, Maui coffee, you have to have at least 51% from that origin of,” said David Bateman, Hawaii Coffee Association.

The industry says for decades, the reputation of the renowned bean has been watered down since a 10% Kona blend could be labeled as Kona.

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

The coffee industry supported the new law, even though they say it actually hurts 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 effect on you and that’s the effect that’s driving demand down,” said Bill Myers, Heavenly Hawaiian CEO.

The new law comes after a Hawaii coffee farmers lawsuit fought counterfeit Kona and was settled last year. Myers says now the big-box buyers of coffee are skittish about buying Kona.

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

Experts says after historic highs, Kona coffee prices are expected to drop 20% from two years ago. Myers expects the market to stabilize so right now the best news 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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