Malibu extends its coconut commitment by three years

Malibu just wouldn’t be Malibu without its distinctive coconut flavour. Subsequently, it relies on the local farming communities in the Philippines that supply the coconuts for its iconic flavour.

In 2020, Malibu partnered with the SDGCoco Project as a way of giving back to these communities. The initial five-year Coconut Commitment gave Malibu an opportunity to help protect coconut plantations and improve the livelihoods of the farmers and families behind its key ingredient.

Now extended for a further three years, we caught up with Pia Hägglöf, Marketing Manager Brand Architecture for Absolut Vodka and Nikko Briguera, Marketing Manager Brand Architecture for Malibu to reflect on what the programme has delivered so far, and how it is evolving as it enters its next phase. 

For Nikko, who is originally from the Philippines and grew up not far from the coconut-farming regions involved in the programme, the commitment reflects a connection to where he was born and raised, and to communities whose livelihoods are directly shaped by the initiative.

A programme built on collaboration

Alongside partners – coconut processor, Franklin Baker, flavour producer, Symrise AG and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH – Malibu set out to support around 500 farmers to increase their income and annual yields, improve living standards, introduce safer working practices, provide training and education and empower them to introduce new crops so they could start to diversify their revenue streams.

A key strength of the programme was that the funding partners represented the full value chain, linking farmers directly with processors, buyers and government agencies. This helped translate sustainability efforts into tangible benefits, such as a secure supply, fair pricing, supply-chain transparency and better long-term opportunities.

Despite the challenges of the pandemic in the early years – including some of the strictest and longest lockdowns in the Philippines – the project exceeded Malibu’s expectations with farmers increasing productivity by an average two-thirds and doubling their income.

The programme also helped to build so-called ‘demo farms’ where farmers get hands-on, practical training on how to make the best use of their land – and crops besides coconuts are being grown.

We have supported farming communities and today, coconut yields are higher.

Pia Hägglöf

A new three-year commitment

With the original commitment ending in 2024, Malibu has now entered into a three-year agreement to continue supporting coconut farmers, which will be structured around three components.

1. Regenerative agriculture and carbon footprint assessment

“We want to continue to build on the successes of phase one. For example, improving regenerative agriculture practices to increase yields and lower production costs,” says Pia. “Meanwhile, a carbon footprint assessment will help us understand what impact coconut farming has on the environment and how we can reduce emissions or capture carbon.”

This marks an important shift from productivity-focused interventions to a more holistic, systems-based approach that integrates regenerative principles like soil health, biodiversity, residue management and climate resilience.

Support is now more tailored to help farmers understand not just what to do, but why these practices matter for long-term sustainability and livelihoods.

Nikko Briguera

A carbon footprint assessment is equally central to this shift. SDGCoco+ is starting with a baseline assessment of 20 pilot farms using tools such as the Cool Farm Tool. As the project matures, measurement will be refined and linked to improved data quality, transparency and farming practices. Beyond reporting, carbon data will be used to guide better decisions, track progress over time and strengthen accountability across partners.

2. Business skills enhancement and income diversification

A key focus of the initial commitment was to reduce local dependency on coconut sales. Subsequently, three ‘demo farms’ were built to provide working examples of alternative ‘cash crops’. These included bell peppers, aubergines and broad beans that harvest more quickly and can help farmers diversify income streams by selling to other markets.

“Farmers have only ever farmed coconuts; they don’t see their land as somewhere to plant other crops. By learning how to farm organically and grow vegetables, farmers can provide food for their families or ‘cash crops’ to sell,” says Pia.

As a result, more than half of participating farmers are now practicing intercropping. Building on this success, the renewed phase will introduce additional income opportunities like livestock production or value-added use of coconut by-products such as husks and leaves.

Alongside diversification, a greater emphasis is being placed on business and entrepreneurial skills, helping farmers to manage their farms as sustainable enterprises. “The intention is to build self-sufficiency, so farmers have the skills and confidence to sustain their livelihoods independently over time,” Nikko emphasises.

The demo farms serve as role models and practical learning spaces. They’re rooted in community – if something works for them, others will follow.

Nikko Briguera

3. Occupational health, safety and community empowerment

The commitment will also focus on improving occupational and health safety standards with appropriate risk assessments. For example, heat stress analyses will be conducted on the farmers to understand the levels of temperatures they are exposed to. “There are potential health risks to working in the hot weather,” says Pia. “We want to safeguard our farmers, and the heat assessment will help us ensure we have the right measures in place.”

Integrating health and safety alongside environmental goals ensures that farming practices are not only climate-resilient, but also safe and socially responsible. This integrated approach reflects the reality of farming where environment, social and economic factors are deeply interconnected.

Looking ahead

The coconut industry in the Philippines continues to face significant challenges; much more is still to be done but every commitment adds up.

“Scaling regenerative agriculture – particularly in smallholder coconut systems – requires time, capacity building and reliable data. Careful coordination and communication among partners, rigorous evaluation and an ongoing dialogue with farmers are crucial,” Nikko explains.

One of the most complex challenges has been balancing ambition with realism.

Nikko Briguera

As the renewed commitment progresses, success will be defined by measurable improvements across multiple dimensions: healthier soils and ecosystems, more resilient farmer livelihoods, credible carbon and environmental data and stronger farmer capacity to sustain regenerative practices independently.

Equally important will be SDGCoco+’s ability to serve as a proof of concept, demonstrating a scalable, replicable model for regenerative coconut farming that can inform broader transformation across the sector.

“We were proud to be involved in the first programme, and we are looking forward to strengthening regenerative agriculture and health and safety, and conducting a carbon footprint assessment as part of our renewed commitment,” adds Pia.