Negotiating a Legacy at Sustainable Harvest (A)

The specialty coffee importer Sustainable Harvest was the first certified B Corp in the coffee industry due to its investments in building coffee farmers’ capacity and livelihood. But in 2022, after coffee prices plummeted and the company’s bank declined to extend its credit, founder and CEO David Griswold was forced to consider selling his company. If Sustainable Harvest ran out of money and defaulted on its contracts, its suppliers—small coffee farmers in South and Central America—could lose millions. To avoid this outcome, Griswold began negotiations with two potential buyers, both much larger coffee importers that seemed to appreciate Sustainable Harvest’s business model. The (A) case (no. 925-010) describes how, under a tight deadline, Griswold weighed the merits of each potential buyer (and one buyer’s request for exclusive negotiations), considering whether he could trust each buyer to treat him, his employees, and the coffee farmers fairly and to carry on Sustainable Harvest’s legacy. The (B) case (no. 925-011) explains Griswold’s decision and explores the impacts of the sale, one year later.