In a letter to Kapalua employees and owners on November 3, 2009, Chairman and Interim CEO Warren Haruki announced a new strategic direction aimed to make Kapalua Land Company more competitive, while improving operating efficiencies and positioning Kapalua for future success.
"Until now, KLC has managed most operations in the Kapalua Resort-operating award-winning accommodations, championship golf courses, retail, adventure activities, F&B operations, shuttle and maintenance services as well as a certified organic farm. Moving forward, we will streamline our operations to focus on managing the resort rather than specificially running each operation.
To achieve this, KLC will partner with "best in class" operators in their respective fields who can operate select assets of the resort more effectively. Partners are being selected on their ability to reinforce Kapalua Resort's reputation for exemplary service. New partnership arrangements, which will be finalized on or before December 31, 2009 include:
- Engaging a leading hotel/condominium management company to manage the 206 unit Kapalua Villas.
- Finalizing an agreement to lease equipment and to license operations of Kapalua Adventures to a well-respected activity company.
- Working with Kapalua Resort Association to select an operator to provide resurt shuttle and security services, both of which are currently provided by KLC.
- Seeking a new operator at Kapalua Farms to continue farming the land and lease its equipment and operations."
Mr. Haruki goes on to add that the resort has recently emerged from an extensive multi-million dollar transformation, and the resort's revitalization will allow the company to provide an even higher level of service.
In a separate announcement, the company has announced the discontinuance of their pineapple operations as a result of higher production costs and severe pressure on revenues. As a result, Maui Pineapple Company will immediately stop planting pineapple and will cease pineapple operations by the end of 2009.
On December 31, the company announced that five former Maui Pineapple Company executives have teamed up with Pardee Erdman of Ulupalakua Ranch to assume pineapple operations from ML&P. The new company will be named Haliimaile Pineapple Company and will continue to grow and market fresh pineapple under the Maui Gold Brand.
Key shareholders and directors of the new company are Pardee Erdman, Doug Schenk, former President of Maui Pineapple Company, former vice presidents of MPC, Doug MacCluer and Ed Chenchin, and current operating directors for MPC, Darren Strand and Rudy Balala.
Haliimaile Pineapple Company will farm approximately 1,000 acres in upcountry, and may add to this acreage in the future. The formation of this new company also keeps important jobs, and will continue to provide high quality fresh pineapple to local hotels, restaurants, and supermarkets.