[ad_1]
Aveda is stepping into blockchain technology to chart its vanilla bean supply chain.
Aveda, owned by Estée Lauder Companies, launched a pilot project in February 2019 with blockchain company Wholechain. At the time, each of its Madagascar vanilla bean growers was provided with a digital identity card that transmitted their unique traceability code. This was based on a traditional stamp identification system called Fitomboka, via a QR reader. Farmers will bring their crops to a local cooperative for sale, which is when they can register sales via the QR code. This information is then recorded via blockchain technology, making it tamper-proof. From the moment the vanilla leaves the hands of the producer, it is then tracked through the supply chain on the blockchain to validate its quality and authenticity.
Madagascar vanilla is a key ingredient in 125 Aveda products and is part of the brand’s ingredient history. The first products made using blockchain-traced vanilla will begin appearing on store shelves in the second quarter of 2021.
“[Blockchain] it really makes it extremely objective and traceable, “said Barbara De Laere, president of the Aveda Global brand.” We can always say that we are doing certain things, but this is the proof in the pudding. It is safe and reliable for the consumer and for all stakeholders to be able to see what’s happening with the ingredient along the supply chain. “
There are valid reasons for wanting to keep an eye on the vanilla supply chain. According to a 2018 New York Times article, Madagascar produces 80% of the world’s vanilla, and is one of the most expensive Ingredients. Between 2013 and 2017, vanilla prices increased from $ 50 per kilogram to $ 600 per kilogram, which is more than silver. According to the CIA World Factbook, Madagascar has also faced rampant government corruption and instability, a weak judicial system, and massive deforestation problems. Therefore, vanilla crops have become a hotbed of crime, corruption and violence.
For a global brand like Aveda, distributed in over 65 countries, the supply chain is a complex and sometimes opaque path. Aveda works with 450 farmers in Madagascar who harvest vanilla beans which are then shipped to Grasse, France and finally to Blaine, Minnesota, where Aveda makes its products in the United States. The journey from Africa to Europe to the United States takes about six months, said Greg Polcer, vice president of global supply chain at Estée Lauder Companies.
From a consumer perspective, Aveda plans to have a consumer-facing online activation at an indefinite time in 2021, where customers will be able to see the vanilla bean journey from Madagascar to its factory in Minnesota. The ability to trace the roots of a product through packaging will not be made available, although Aveda is looking into the feasibility of providing this information in the future. Before, the CBD brand for skin care and ingestion, and Doterra, an essential oil brand, both used QR codes on their packaging to allow consumers to see for themselves the purity of an ingredient and the batch code.
“Honestly, we weren’t looking for a big return on investment; the driver was much more focused on the question: does it work and can we see how it works?” Polcer said. “What we are seeing now is this [gaining] transparency is just a [small] investment in the grand scheme of things and believe we can scale it to map our supply chains for Aveda and many other brands in the Estée Lauder Companies portfolio. “
