This Mililani Company Packages Salt From The Mainland And Sells It As Hawaiian. Is That Cheating?
Hawaii’s commercial salt producers say bulk salt shipped in from elsewhere and sold as ‘Made in Hawaii’ is hurting their business.
Hawaii’s commercial salt producers say bulk salt shipped in from elsewhere and sold as ‘Made in Hawaii’ is hurting their business.
On a shelf of the ABC Store on Kalakaua Avenue across from Kuhio Beach, amid the T-shirts, beer and sunscreen, are bags of sea salt emblazoned with the phrase 鈥淢ade in Hawaii.鈥 There鈥檚 black salt for 鈥渄etox diets,鈥 Kiawe-smoked salt to add 鈥渙utdoor flavor to any dish,鈥 and hot black 鈥渨ith spicy hot flavor.鈥
But there鈥檚 one thing that might not be clear about Hawaiian Island Salt Co.鈥檚 product, given its packaging: the salt doesn鈥檛 necessarily come from Hawaii, the company says.
Jay Garcia, president of Hawaiian Island Salt Co.鈥檚 parent company, , said although The Islander Group considers the salt to be made at its facility in Mililani, the company actually ships in the salt in bulk 鈥 at least some via the Houston-based giant .
The salt isn鈥檛 necessarily produced in Hawaii, Garcia said, “It鈥檚 just packaged鈥 here.
The 鈥淢ade in Hawaii鈥 designation, he said, 鈥渄oesn鈥檛 necessarily mean where it鈥檚 grown.鈥
Competitors who produce sea salt in the islands from Pacific Ocean water and Hawaiian sunshine are crying foul. Their complaints echo critics of everything from coffee and macadamia nuts to beer, potato chips and energy drinks that have used Hawaiian imagery and names to sell food products not actually made in the islands.
Lawmakers in 2023 , after more than a decade of battles between small farmers and large coffee roasters.
Now local salt producers are speaking out, saying the state has the tools to help them but chooses not to.
George Joseph, the owner of Hawaii Kai Salts on Molokai, says the state鈥檚 鈥溾 law requires goods to meet certain standards to be called 鈥淢ade in Hawaii.鈥 He questions whether The Islander Group鈥檚 products are doing that.
鈥淭hey have the right to sell the salt,鈥 Joseph said. 鈥淛ust don鈥檛 put 鈥楳ade in Hawaii.鈥欌
Sandra Gibson, owner of聽, agrees. She said several companies sell salt in supermarkets and elsewhere with packaging that implies the salt is Hawaiian. But, she said, the Islander Group crossed a line by labeling bags as “Made in Hawaii.鈥
鈥淚t鈥檚 misleading,鈥 said Gibson, who owns a 7-acre farm on the Big Island, which produces about 40,000 pounds of Hawaiian sea salt annually. 鈥淚t鈥檚 really cheating people.鈥
But the law is not so simple, says Rick Cohen, who enforces the Hawaii-Processed Products statute as chief of the Department of Agriculture鈥檚 . In general, he said, applying the law requires a fact-intensive analysis.
The statute says food products can be called 鈥淢ade in Hawaii鈥 if just 51% of the wholesale value of the commodity is added by manufacture, processing, or production in Hawaii.
That means with enough expense and labor dedicated to processing and packaging, items from elsewhere can easily be called 鈥淢ade In Hawaii,鈥 Cohen said.
鈥淵ou could do it very easily,鈥 he said.
For his part, Garcia says The Islander Group is doing what the department requires.
鈥淭hey set the standards, and we follow them,鈥 he said.
Salt might seem like an unlikely subject for a business feud. But salt has long been central to commerce, a precious commodity that was once literally worth its weight in gold. As the online , salt was so valuable for food preservation and nutrition in antiquity that North African traders were able to exchange salt for gold dust in West African commercial centers like Timbuktu.
In fact, the salt-gold trade is often cited as the motivation for North African Berber traders to , which was needed to carry blocks of salt across the Sahara Desert to the salt-starved trade centers.
Salt these days is less valuable but still a steady source of revenue for salt producers. According to a by the U.S. Geological Survey, domestic in 2023 sold in bulk for $220 per ton, or about 1/2 cent per ounce.
Gourmet salts can command higher prices. The online purveyor Saltworks of Woodinville, Washington, sells 鈥溾橝laea鈥 Red Hawaiian-Style Sea Salt鈥 made of sea salt mixed with red clay, for , or 29 cents per ounce. An 8-ounce bag of The Islander Group鈥檚 salt these days sells at the ABC Store for $9.99, or more than $1 per ounce.
While The Islander Group doesn鈥檛 produce its salt, Garcia says its does put work into packaging it.
In addition, he said, the company buys some of its salt in pallets from . However, it is not clear that the Molokai company is still in operation. The phone number on its website has been assigned to another user, its Hawaii business registrations are out of date and the company did not respond to emails sent to three company addresses.
Regardless, Garcia said the salt business is a small part of The Island Group鈥檚 operations, which involves distributing more than 10,000 , including things like Energizer batteries, Pilot pens and WD-40, to more than 1,000 , including Safeway, Costco and Walmart, as well as ABC Stores.
By contrast, Joseph and Gibson produce salt on commercial-scale farms on Molokai and the Big Island. It鈥檚 technically challenging, requiring sensitivities to sunlight and temperature similar to wine-making. And both salt farms have Native Hawaiian salt makers helping oversee production.
In addition, unlike other commercial salt producers, Joseph and Gibson have both qualified to use Hawaii鈥檚 鈥淢ade In Hawaii with Aloha鈥 trademark, which shows that the companies as complying with the Made in Hawaii statute.
Still, Joseph and Gibson say it鈥檚 hard to make money when big players like Saltworks are selling of 鈥淗awaiian-style鈥 salt at cut rates. Such salt doesn’t bear the Made in Hawaii with Aloha logo, but that doesn’t to matter to customers
The only way Gibson survives, she said, is by supplementing her salt business with tours of her salt farm.
Joseph boosts his revenue by selling some product lines that don’t meet the 51% value added requirement to be called Made in Hawaii, and he says he doesn鈥檛 put the Made in Hawaii with Aloha logo on those products.
Meanwhile, Gibson and Joseph are competing in stores with companies that imply through their packaging that they鈥檙e made in the islands, or claim outright that they鈥檙e made here. The competition is even worse online, she says.
鈥淲hen you go online, it鈥檚 a complete free-for-all,鈥 Gibson said.
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About the Author
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Stewart Yerton is the senior business writer for 天美视频. You can reach him at syerton@civilbeat.org.