The evolution of Barilla’s durum wheat supply chain contracts for triple bottom line benefits

Purpose – We investigate the innovative supply chain contracts developed and implemented by Barilla, the leading Italian pasta company, in sourcing high-quality durum wheat from farmers in Northern Italy in the Emilia Romagna region. Methodology/approach – Using case study techniques to gather information, we captured the evolution of the supply chain contracts adopted by Barilla. We gained information mainly through semi-structured interviews with Barilla’s managers, co-op and consortium managers representing farmers, Barilla’s quantitative data related to contracts’ elements and structure, preliminary experimental results, agri-business magazines, industry reports, and academic literature. Findings – These contracts helped the company improve not only its long-term profits and strategic objectives such as supply security, but also the farmers’ income as well as environmental sustainability, thus providing triple bottom line benefits. Originality/value – We investigate how Barilla and its suppliers - with the support of additional stakeholders, such as regional institutions - combine in their innovative contracts fixed and market-based prices as well as quality and sustainability-based premiums for desired triple bottom line benefits.