Kauai Coffee warns 141 workers as lease negotiations remain unresolved

Kauai Coffee Co. notified 141 employees with Worker Adjustment and Retraining Notification notices as lease negotiations over its plantation lands remained unresolved, signaling possible layoffs and operational disruption if talks are not settled by the end of March. The March 28 lease expiration puts the future of a major commercial and tourist coffee operation on Kauai in immediate focus.

WARN notices formally alert employees and the community that business closure is possible if underlying issues are not resolved, although they are not a guarantee of layoffs. The notices followed a county council hearing in early January where senior advisor Wayne Katayama emphasized the gravity of the situation. “I cannot overestimate the seriousness of why I am here before you today,” Katayama told council members. “We will continue to seek some kind of resolution and hopefully that we’ll be able to negotiate something successfully by the end of March. That however has put a strain on our 2026 crop for our farming operations and processing operations.” Katayama also said the current landlord had indicated “they would want to continue a coffee operation, post our exit.”

Kauai Coffee operates on roughly 3,000 acres with about 4 million coffee trees and runs a fully integrated operation that includes agricultural work, post-harvest processing, roasting, packaging, retail and visitor services. The farm employs three certified Q graders and has long been a stop for tourists on the island’s south shore, offering tastings and guided walks through portions of the plantation.

Operational control of the coffee business has been separate from land ownership for years. Massimo Zanetti Beverage USA took over coffee operations in 2011 via a lease arrangement with then-parent company Alexander & Baldwin. In 2022 A&B sold the land to Brue Baukol Capital Partners in a $76 million transaction. The larger Kauai Coffee Lands, about 4,713 acres, was marketed as a long-term investment when it was listed for sale in 2024.

Brue Baukol Capital Partners says it remains in active lease negotiations and would seek to retain Kauai Coffee employees should management change, while company leaders continue to press for a resolution that preserves the integrated specialty coffee operation. The immediate stakes include the 2026 harvest, processing schedules, and the loss of a tourism anchor that feeds local retailers, roasters and hospitality businesses.

For anyone who depends on Kauai Coffee for beans, tours or seasonal employment, expect more updates through March. Follow announcements from company and landlord channels, consider buying current releases now to support local operations, and plan travel or supply orders with the potential for interruptions in mind. The outcome of these negotiations will shape not just one farm, but a significant piece of Kauai’s coffee economy and visitor experience.