Kauaʻi Coffee Co. employees receive WARN notices with lease ending March 28

Kauaʻi Coffee Co. on Monday sent Worker Adjustment and Retraining Notifications, known as WARN notices, to its 141 employees with its land lease ending at the end of March.

WARN notices provide protection to workers, their families and communities by requiring employers to provide notification 60 calendar days in advance of plant closings and mass layoffs.

The lease is set to end March 28 between Brue Baukol Capital Partners, a Colorado-based investment firm that owns the thousands of acres used by Kauaʻi Coffee Co., and Kauaʻi Coffee Co. owned by Massino Zanetti Beverage USA.

“We regretfully confirm that WARN notices were distributed to KCC employees starting yesterday,” due to meeting legal requirements, Brian Kubicki, general manager of Kauaʻi Coffee, said in a statement on Tuesday.

“As anyone can imagine, the employees are devastated and the harsh reality of the situation is setting in,” Kubicki said.

Chris West, president of the International Longshore & Warehouse Union Local 142, of which 69 of the 141 affected employees are members, said in a statement: “These workers did not create this situation. They grow, harvest, roast, package and distribute Kaua’i Coffee, a fully integrated agricultural operation built by local people over decades. Yet today, those same workers are being forced to prepare for and uncertain future and possible layoffs.”

West added: “Sadly, agricultural lands are increasingly seen as opportunities for high-end development. BBCP is not a coffee company. It is a major real estate firm and now the third-largest landowner on Kauaʻi, with investments in luxury real estate. This issue extends well beyond the coffee workers at Kauaʻi Coffee Company and to the question of whether Kauaʻi gets turned into a playground for investors.” In the absence of transparency, the risk to working families is real and profound.”

James Priestley, vice president of Brue Baukol Capital Partners, said in a statement the company remains in active lease negotiations but emphasized that any potential management changes would not automatically result in job losses.

“Should there be a need for change in management, it is our intention to retain all Kauaʻi Coffee employees who wish to continue working with us,” Priestley said.

Kubicki said: “We have always been and continue to be willing to sign a long-term extension of terms consistent with our current lease.”

The notice follows Kauaʻi Coffeeʻs senior advisor Wayne Katayama’s Jan. 7 address to the Kauaʻi County Council.

On Monday, Katayama said he personally “was not part of the WARN process and has no firsthand knowledge of what was communicated” to his employees.

Brue Baukol Capital Partners said in its statement Monday that the company’s focus is on preserving and evolving Kauaʻi Coffee’s legacy, including its operations, products and customer experiences. Priestley added that Brue Baukol Capital Partners is committed to maintaining benefits the company provides to employees, the local community and the broader local economy.

“We look forward to maintaining and evolving Kauai Coffee’s operations, products, and the experiences of both employees and customers,” Priestley said.

Kauaʻi Coffee Co., one of the island’s largest agricultural employers and a major visitor attraction, has operated since the late 1980s, when then land owner Alexander & Baldwin switched from growing sugar to coffee.

In June 2022, Brue Baukol Capital Partners bought 18,000 acres from A&B, which included about 3,700 acres used by the coffee farm. Priestley previously said those 3,700 acres are designated as “Important Agricultural Lands” and will continue to be used for agricultural purposes.

Massino Zanetti Beverage USA has operated Kauaʻi Coffee Co. since 2011.

“The workers deserve answers,” West said. “The community deserves honesty. And these jobs deserve to be protected.” 

Kubicki added: “All of us at Kauai Coffee want to thank the community for the compassionate outpouring of support we’ve received,” “We continue to work toward and hope for a resolution that allows us to carry on our normal operations.”

Editorʻs Note: This story has been updated with comments from ILWU Local 142 and Kauaʻi Coffee Co. A previous version incorrectly stated Brue Baukol Capital Partners sent out the WARN notices. They were sent out by Kauaʻi Coffee Co.