- Sustainability can be a pivotal factor for brands aiming to differentiate themselves in a crowded marketplace
- 64% of American specialty drinkers are reportedly more likely to buy coffee from a company that pays a fair price to the farmer
- But can a brand be called sustainable if it doesn’t apply the same sustainable values in-house?
THESE days, it’s hard to cut through the opaque sustainability jargon and marketing and understand which brands really are implementing meaningful sustainable practices.
Beyond investing in producer or environment support schemes, or sustainable marketing messaging, sustainable practices are also companies’ embodiment of these values in-house – and how accountable they hold themselves to their own staff.
Sustainability has emerged as a pivotal factor for brands aiming to differentiate themselves in a crowded marketplace, from B-Corp certification to organic and direct trade commitments, for example.
The rise of conscious consumerism has propelled sustainability to the forefront of brand strategy and marketing messages. Some brands see incorporating sustainability values into marketing as crucial to not only sell their products, but also to stand out among competitors.
This has inevitably opened the door to greenwashing and empty promises. But some initiatives go beyond mere lip service and genuinely commit to environmental and social responsibility.
“For over 20 years we’ve focused on doing the right thing for farmers, their land, and their communities. We’ve led with action and impact while most in the industry lead with marketing,” says Martin Mayorga, Founder and CEO of Mayorga Coffee.
“Most consumers see that we have genuine relationships with our producers and are able to understand that we’re a company with organically embedded values. Many companies unfortunately market and message what they think consumers want to hear and then do the bare minimum or nothing towards what they claim to do.”
Consumers today are more discerning and socially aware than ever before, actively seeking out brands that align with their values. The 2022 National Coffee Association Report found that 64% of American specialty drinkers were more likely to buy coffee from a company that pays a fair price to the farmer, and 57% from one that treats the workers on the farm well.
Accountability to suppliers is vital for sustainable supply chains – but how about accountability to employees? Today, with inflation and cost of living at an all time high, companies are increasingly cutting corners, sometimes leading to unsustainable practices within their own companies. Can they then still call themselves sustainable brands?
How sustainable are brands’ in-house practices?
While many sustainable brands excel in their external sustainability endeavours, the true test lies in their in-house practices.
In an economy marked by financial uncertainty, companies across industries are facing the harsh realities of budget cuts, downsizing, and offshoring. The pressure to reduce costs often results in compromises on internal sustainability commitments, affecting employees and organisational culture.
This has resulted in a unionisation wave across coffee brands in the U.S., including Blue Bottle, Starbucks, and a slew of local coffee shops.
The question arises – can a brand truly be sustainable if it prioritises external sustainability efforts over internal practices? The dichotomy between promoting sustainable values outwardly while neglecting them internally poses a significant ethical dilemma.
Sustainable brands must recognise that true sustainability encompasses both environmental and social responsibility, including how they treat and empower their employees.
“Sustainability should be an all-encompassing concept,” says Martin. “ We can’t claim to have sustainable practices through our partnerships in Latin America if we’re not a company that’s always making decisions to sustain in the market for many years to come.”
“My perspective toward the employee/employer relationship is that it’s been turned into a zero sum game where interests are in conflict. I work to build Mayorga as an example of what should be the model for any business in any industry. It’s essential that each of us can feel fulfilled, motivated, and appreciated in our roles as we work together to excel as a company.”
Investing in sustainable supply chains means prioritising fair trade and sustainable sourcing practices, but it also means valuing and rewarding company members. Unfair practices that need attention are also rampant closer to home, including discrimination based on gender and race, for example.
“Mayorga has a mostly Latino staff. This tends to be because people with roots in Latin America tend to be passionate about our commitment to the region,” says Martin.
“Most of us would never have the opportunities given to us by Mayorga Coffee because of assumptions based on our accents, skin tones, or last names, for example, and I’m glad I can help bridge that.”
Balancing in-house and supply chain sustainability
Navigating the complexities of sustainability in both marketing and in-house practices poses a formidable challenge for companies, especially in turbulent economic times.
To strike a balance between external and internal sustainability, brands must adopt a holistic approach to sustainability management.
“I see the next 18 months being very challenging for coffee roasters. Interest rates won’t come down much, coffee will stay at higher than usual prices, and overall costs will continue to stay high – while thousands of roasters fight for identity and market share,” says Martin.
“So, we thin out some extra expenses and become very selective about who we sell to. Reasonable growth has taken precedence over aggressive growth and intelligent cost management is the new sales. We’re also fortunate that we don’t have investors that expect lofty returns.”
Effective strategies include prioritising employee well-being through competitive benefits, fostering open communication channels, and investing in robust HR practices. By creating a supportive and inclusive work environment, brands can not only attract top talent but also nurture a culture of sustainability from within.
Additionally, aligning in-house practices with supply chain sustainability goals requires cross-functional collaboration and a long-term commitment to driving positive change throughout the organisation.
“For me, employee programmes are never on the table as we look at cost management,” says Martin. “With inflation, the cost of living has actually increased and we as a company need to support our team to sustain their livelihoods.”
“We’ve rolled out paying 80% of all employee health insurance, implemented pay increases and higher bonuses, and established 3 months of paid parental leave for all of our full-time employees. Our staff’s quality of life is never negotiable. Mayorga has to be the best place to work, or I’m not doing my job.”
The pursuit of sustainability for brands transcends mere marketing rhetoric and requires a genuine dedication to embodying these values at every level of the organisation.
By integrating sustainability into both external messaging and internal practices, brands can authentically demonstrate their commitment to creating a better world for future generations while remaining competitive in a rapidly evolving marketplace.
Coffee Intelligence
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