New York Beauty Brand Taps Blockchain to Track Vanilla Supply Chain
Blockchain technology is being used to track vanilla straight from Madagascar.
Tracking Vanilla on Blockchain
New York-based makeup firm Estee Lauder Companies (ELC) and its haircare brand Aveda recently announced that they will use blockchain technology in a bid to promote responsible and sustainable sourcing of materials, reports Ledger Insights.
Notably, ELC will leverage distributed ledger technology (DLT) to trace vanilla sourced from Madagascar where close to 80% of the world’s vanilla produce originates.
Commenting on the development, Greg Polcer, EVP, ELC, noted:
“Blockchain technology adds an extra layer of transparency to our sourcing practices, verifying our vanilla supply chain’s compliance with the highest ethical and environmental standards, and strengthening trust with our suppliers, consumers and investors.”
Per sources close to the matter, the company is aiming to use blockchain for 125 Aveda products for vanilla tracking by the spring of 2021. To date, the firm has completed a pilot with 450 farmers in Madagascar. It then sells the produce – the vanilla beans – to the local cooperative.
It’s also worth noting that a QR-enabled mobile app is used to commence the traceability journey that begins at the point of harvest, logged on the Wholechain blockchain.
For the uninitiated, Wholechain is a DLT solution developed by Envisible that targets the issue of traceability in the food sector. The platform’s blockchain technology solution is based on Mastercard’s proprietary blockchain offering and simultaneously also enjoys a partnership with the card firm.
Interestingly, ELC has chosen vanilla as a starting point because it’s produced by smallholders requiring intensive farming needs has tackled several climate challenges and price fluctuations. Further, ELC’s global sustainable business partner BSR was also involved in the blockchain-based supply chain project.
Blockchain for Supply Chain
In addition to its major uses of recording financial transactions and powering cryptocurrencies, blockchain technology has also become an increasingly significant force in the supply chain management space.
Several blockchain projects, for instance, VeChain, are vying to tap the supply chain management industry via blockchain.
As previously reported by BTCManager, a premium Jamaican coffee brand – Jamaican Blue Mountain Coffee – was recently listed by Real Items, a marketplace that tracks and guarantees the authenticity of its products using the VeChainThor blockchain.