Written by: Jasper Spanjaart
August 28, 2024 – Reading time: 4.5 minutes
In collaboration with MT/Sprout – JohnnyCashew has a clear mission: to eliminate “round-the-world cashews”—nuts that are first transported from Africa to Asia for processing—and then shipped back to Western supermarket shelves. “I think this market is ready for a sustainable alternative,” says Freek Wessels, co-owner and Captain Cashew.
Freek Wessels is the "Cashew Captain" of Johnny Cashew. Photo: Johnny Cashew/Saskia Bakker Photography
About 80 to 90 percent of all African cashews are first shipped to Asia for processing. From there, those same nuts are transported to Western countries, where they are then made available to consumers. Freek Wessels, co-owner of Johnny Cashew, calls the detour—which can amount to 12,000 to 24,000 kilometers—"totally insane."
In addition, the nut weighs four to five times as much when unpeeled, because it still has its shell. “Why transport so much waste when you can simply process the nut in the country where it grows?”
And so, amid a fair share of frustration and surprise, the Johnny Cashew concept was born. “We actually took a close look at the entire supply chain,” says Wessels. “We went back to basics, because working conditions for local factory workers and farmers weren’t always ideal either.”
Carbon-neutral cashews
The company—founded by Hayo de Feijter and Roel van de Weijer—invested expertise and resources in a factory in Tanzania, where 600 women now shell and process cashews locally for a living wage. In addition, the company sought to collaborate with four local cooperatives in Tanzania, which have about 1,500 farmers as members. They, too, receive a living wage.
“We are the first cashew supplier to pay our farmers a fair price, while also reducing CO2 emissions from transportation by about 60 percent. We properly offset the rest of our emissions. This makes us the world’s first CO2-neutral cashew.”
‘Herculean effort’
Before that emission-free cashew became a reality, there were quite a few obstacles to overcome. “It’s an expensive and lengthy supply chain to pre-finance,” says Wessels. “The process of growing, shelling, shipping, roasting, toasting, packaging, and stocking cashews, combined with our customers’ payment terms, required nearly nine months of pre-financing. Getting that off the ground takes a Herculean effort, especially for a startup.”
The supermarket chain Lidl was the first company to recognize the potential of these sustainable cashews. “This whole project would have been impossible without them,” says Wessels. “It’s actually a miracle that such a large company was willing to give a startup a chance. They were intrinsically motivated to make their operations more sustainable. After all, it wasn’t possible for us to set up and pre-finance that entire supply chain without a customer.”
Wessels also praises the collaboration with Invest International, a joint venture between the Ministry of Finance and the FMO business bank, which supports companies in the Netherlands with international operations linked to the achievement of the Sustainable Development Goals in making their investments more financeable.
“Banks aren’t very keen on financing a small business like ours. It’s often seen as too risky, and they usually want to see a proven track record,” says Wessels. “You do need confidence, entrepreneurial spirit, and an intrinsic drive to make an impact.”
Lessons from Tony’s Chocolonely
By this, Wessels is referring to his own experience at Tony’s Chocolonely, where he worked for seven years as CFO and right-hand man to owner Henk-Jan Beltman. “Tony’s was a kind of perfect storm,” says Wessels. “We generated so much attention all at once with the broadcasts by Maurice Dekkers and the Keuringsdienst van Waarde. After that, we were able to make rapid progress with boldness and a solid plan. It was a sort of explosion of joy and entrepreneurship, but also a lot of struggle.”
Wessels sees parallels, but also major differences between Johnny Cashew and Tony’s. “The business model is definitely not a copy-paste job,” he laughs. “For example, we now have to build awareness ourselves and pre-finance the entire chain. When I run into a problem now, Beltman’s way of thinking is often in the back of my mind. Because it’s all about a good plan, focus, scalability, moving fast, and never cutting corners when it comes to sustainability.”
“It doesn’t matter which bag it’s in”
Johnny Cashew’s office is located in B. Amsterdam, a hub for startups and scaleups. “It really brings people together,” says Wessels. “As a startup, you need a place that’s inspiring, where you can connect with other entrepreneurs. There are plenty of opportunities organized to meet each other and foster social interaction. At the same time, for us it’s all about scalability again. You want to start small, but also be able to grow without having to move right away.”
That growth strategy is based on two pillars: the company’s own brand and a private label division, such as the Way to Go range on Lidl shelves. ‘We don’t care who we sell our nuts to or what kind of bag they come in, as long as we make the impact we envision. Our own brand serves as a means to tell the story and make consumers aware of the sustainable supply chain behind the products. The private label division ensures broader distribution and larger volumes. We need to sell more volume to get out of the red.’
Destination London
Meanwhile, Johnny Cashew products are also available at Albert Heijn, Picnic, and EkoPlaza. Wessels is looking to expand sales in the United Kingdom, the intended new market for Johnny Cashew. “The Dutch cashew market is too small,” says Wessels. “If you want to make a name for yourself, you have to target new markets and new categories. England has a similar culture, but a much larger market for healthy snacks. That’s where we’re hoping to gain a foothold now.”
“Sustainable Duyvis”
Johnny Cashew also recently raised 2.2 million euros from a number of impact investors. In addition to its venture in the UK, Wessels is also focusing on other products and nuts. “Once we’ve built a brand that’s recognized throughout the supply chain as sustainable, we can leverage that authenticity to expand our product range and sell other nuts, flavors, and blends.”
Wessels also hopes for positive side effects from the new CSRD legislation, which requires retailers to map out their supply chains. “That certainly works in our favor,” says Wessels. “It forces them to make more sustainable, more transparent choices. Cashews have a significant volume, but because of the detour to Asia, they’re less traceable, so you can’t take responsibility for any abuses in the supply chain. We can.”
“I sometimes say at the office that we need to become the sustainable Duyvis. At Tony’s, I saw how we could change the market with a fun, distinctive, and sustainable story. I think the nut market—and cashews in particular—is ready for a sustainable alternative.”