Honolulu

Lease Time Bomb Puts Kauai Coffee’s Fields And Jobs At Risk

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Published on December 20, 2025
Lease Time Bomb Puts Kauai Coffee’s Fields And Jobs At RiskSource: Wikipedia/ Humanoid one, CC BY-SA 3.0, via Wikimedia Commons

Kauai Coffee, the island’s signature plantation and one of Hawaii’s most recognizable agricultural brands, is staring down an uncertain future after learning its land lease will not be renewed. With the agreement set to expire in March 2026, roughly 3,100 acres of coffee trees and hundreds of jobs are suddenly in limbo. Company officials say they want to keep the operation in place, but negotiations with the landowner have not yet produced a deal.

Lease Deadline Revealed At Holiday Open House

During a recent holiday open-house event, Kauai Coffee president and general manager Wayne Katayama told visitors that the company had been informed its lease would not be extended, according to the Honolulu Star-Advertiser. The outlet reports that the farm’s operator, an affiliate of Massimo Zanetti Beverage Group, has been in talks with the landowner, Denver-based Brue Baukol Capital Partners, but so far without an agreement. Staff were notified this month that operations could change if a new lease is not secured.

Thousands Of Acres, Millions Of Pounds, And A Crowd Favorite

The plantation ranks as one of the island’s most visible agricultural attractions, with roughly 3,100 acres of trees that produce about 2 million pounds of coffee per year and include an estimated 4 million trees. The on-site visitor center and free walking trails draw more than 350,000 visitors annually, making the property both a working farm and a major tourism stop for south Kauai, according to Beat of Hawaii. Those figures help explain why a lease dispute at one farm is triggering concern across the island.

Who Owns What, And What The Law Allows

The coffee operation has been run by an affiliate of Massimo Zanetti Beverage Group since the company bought the business in 2011, and the land beneath it was purchased by Brue Baukol in 2022, the Honolulu Star-Advertiser reports. That reporting puts the 2011 purchase price for the operations at about $14 million and says Brue Baukol paid roughly $74 million when it acquired large Kauai holdings two years ago. The article also cites an Alexander & Baldwin-era special state designation meant to keep the acreage in agricultural use and notes that Kauai Coffee employs about 141 people and projects roughly $25 million in revenue this year. Company officials told the paper they hope to maintain operations while pursuing a resolution with the landowner.

Ripple Effects For Tours, Shops, And Restaurants

Local tour operators, vendors, and restaurants say the plantation is built into standard South Shore itineraries, so any significant change at the site could ripple through the island’s visitor economy. The potential shakeup is landing at a time when Kauai tourism businesses are already adjusting to shifting arrival patterns, according to TravelHost. County and state leaders have been briefed, and officials say they are watching negotiations between the operator and the landowner closely.

What Could Happen Next

Ongoing talks will determine whether the plantation’s free visitor experiences and packing operations continue past the March 2026 lease deadline. Possible outcomes include a new lease, a change in management, or a longer-term repurposing of the acreage, with each option carrying different consequences for workers and for the island’s tourism footprint. All parties publicly say they want to avoid a shutdown, but a definitive outcome may not be clear until the new year as negotiations continue.