The demand for pure vanilla began to rise in 2013 with increased interest in pure, natural, non-GMO and Fair Trade products. As a consumer, you may not have realize that over the last few years, there has been a rising cost of pure vanilla. Large users of vanilla like Ben & Jerry’s anticipated a cost increase due to a crop shortage and made plans accordingly, whereas the small ice cream maker’s who make “spot buys” as opposed to “futures buying” pure vanilla, probably noticed the increase at each order and now possibly looking at vanilla options for their products. Before relying on the vanilla manufacturer, have a better understanding of your options and consequences it may cause.

According to www.candyindustry.com, and Food Business News buyers of “cured” vanilla beans who purchase in kilo weight, in 2016 paid $225 – $ 240 per kilogram and in 2017 looking at $400-$500 per kilo. “Green” vanilla bean prices rose from $30 to $80 per kilo in 2016. Just a few years back, a manufacturer paying around $70 for a gallon of pure vanilla, today is looking at $475 plus for the same item. So for companies making all natural, Free Trade, organic ice cream or other gourmet treats, this is big deal.  

The consumer of high quality products can tell the difference between real, artificial and “almost” all natural vanilla. Real vanilla used as an ingredient, is listed on a label as pure vanilla, vanilla extract, vanilla, Madagascar pure vanilla or bourbon vanilla, so unless the manufacturer is of global size, most smaller independent’s may consider temporarily switching to an alternate “vanilla like” until costs come back down to 2014 levels.

Why the spike you ask? According the The Vanilla Queen, between 2005 and early 2014, there was an overabundance of vanilla. As a result, the price for both green and cured, dried vanilla dropped to very low levels.   Because farmers weren’t making enough to survive, many finally burned their vanilla vines and switched to growing other crops. This eventually led to a vanilla shortage, and with the shortage of vanilla beans, prices shot through the roof! Plus that and mentioned earlier, the demand by consumers for pure vanilla has increased.

Increased demand + reduced crop production + one primary growing region in the world = high cost.  

Wikipedia explains the crop origins and difference in type:  

    • Bourbon vanilla or Bourbon-Madagascar vanilla, produced from V. planifolia plants introduced from the Americas, is the term used for vanilla from Indian Ocean islands such as Madagascar, the Comoros, and Réunion, formerly the Île Bourbon. It is also used to describe the distinctive vanilla flavor derived from V. planifolia grown successfully in tropical countries such as India.
    • Mexican vanilla, made from the native V. planifolia, is produced in much less quantity and marketed as the vanilla from the land of its origin. Vanilla sold in tourist markets around Mexico is sometimes not actual vanilla extract, but is mixed with an extract of the tonka bean, which contains the toxin coumarin. Tonka bean extract smells and tastes like vanilla, but coumarin has been shown to cause liver damage in lab animals and has been banned in food in the US by the Food and Drug Administration since 1954.

Know the types of vanilla before you think about making a temporary switch, remember on your product label, you need to disclose what the product contains. Changing an ingredient and not disclosing the change is a big no, no.  

  • World Class Vanilla Co. lists and describes the good vanilla’s:
  • Single Fold Vanilla Extract
  • Two Fold Vanilla Extract
  • Ten Fold Vanilla Extract
  • Eden Foods helps list and describe the lower grades of vanilla:
  • Natural Vanilla Flavor (not considered all natural)
  • Natural Vanilla Flavor With Other Natural Flavor (WONF)
  • Artificial Vanilla, Vanillin, and Imitation Vanilla

Continues…

Names for Artificial, Synthetic, and Imitation Vanilla:

    • Natural Vanilla Flavor
    • Natural Vanilla Flavor with Other Flavors
    • Natural Vanilla Flavor with Other Natural Flavors
    • Vanilla or Vanillin Flavor
    • Natural/Synthetic Blend Vanilla
    • Vanillin and Ethyl Vanillin
    • Imitation Vanilla
    • Coumarin
    • Vanilla Powder
    • Vanilla Oleoresin
    • Clear Imitation Vanilla Extract
    • Crystal Vanilla
    • White Vanilla
    • Dark Vanilla

Contact Darryl if you are strongly considering to switch to a lower grade vanilla. We’ll discuss label declaration, usage level, overall product effects and possible flavor consequences. Paying less for a lower grade ingredient now, may become a costly future mistake that you may not be able to recover from.

Darryl David
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