Sustainable Supply Chain Investment: Is there Evidence to Support Keurig Green Mountain's Livelihoods Theory of Change?

Abstract

Keurig Green Mountain makes significant investments into their coffee supply chain with the intended dual purpose of improving the livelihoods of the farmers who grow the coffee and stabilizing the long-term supply of quality product available to Keurig. The investments are made with various NGOs and NPOs across the globe as part of an overall strategy summarized in two internal documents known as the Theory of Change and Livelihoods Methodology. These two documents hypothesize the method with which investments in supply chain projects will lead to intermediate beneficial outcomes such as improved yield or quality and eventually to the desired impacts of improved farmer livelihoods and increased supply of quality coffee. This practicum paper summarizes the results of research done to support the hypotheses behind the Theory of Change and Livelihoods Methodology documents. The work finds that the majority of the hypotheses hold true but that there are a few large gaps in studies, especially those showing that improving farmer livelihoods leads to increases in steady supply or other benefits for those who invested. The paper summarizes the gaps, highlights areas where Keurig should complete more research before further investment, and makes recommendations on various stakeholder communications and project tracking techniques. In conclusion, Keurig is in a unique position to show other for-profit businesses how improving livelihoods can ultimately benefit their bottom line by monitoring, recording, and publishing results of their supply chain investments.