How Purpose Drives Market-Leading Produce: NatureSweet

Q: What is the operational advantage of maintaining a vertically integrated model over the traditional grower-shipper model?

A: Vertical integration provides us with a level of traceability that gives consumers absolute certainty regarding the origin of their food. This model allows the company to incorporate its core purpose: transforming the lives of millions of agricultural workers in North America through a profitable and replicable business model. Direct control over every stage of the supply chain ensures that growth is coupled with a positive impact at every level.

This strategy goes beyond technical oversight or cost management. It creates a connection between the consumer and the producer, allowing the final customer to know exactly who harvested their produce. Managing the entire process proves that economic success and fair compensation for employees are not mutually exclusive. For NatureSweet, vertical integration is the primary vehicle to ensure transparency, foster a sense of belonging, and maintain a profound commitment to the well-being of every agricultural worker.

Q: How does the use of protected agriculture and vertical integration help NatureSweet change the power dynamic during price negotiations with major North American retailers?

A: Protected agriculture provides a system of control and resource optimization, especially for something as precious as water. This model guarantees consumers that their product will grow under the best possible conditions. Pests and diseases are managed through an integrated biological control system, which uses natural methods and avoids toxic applications to ensure a clean product.

The tools we use help us get the most out of fertilizers and water while making field work more efficient and less strenuous for our workforce. This setup allows for constant production throughout the year, maintaining the same quality regardless of weather conditions. 

Commercial chains value this consistency because it removes the highs and lows of production and keeps prices stable. During times of high inflation or environmental instability, open-field farming suffers from rains or diseases that ruin harvests and spike prices. Protected agriculture avoids these issues, allowing us to approach retailers with fixed, sustained programs. They feel comfortable managing their inventories because they know we will deliver exactly what they need every single week. We ensure that the production chain never breaks, which is a core part of our vertical integration.

Q: What are the disadvantages of being a premium-branded supplier when retailers face economic downturns and shift their focus toward lower-priced private labels or generic commodities?

A: Cherubs is practically the best-selling tomato in the world. We are in more than 60,000 stores across the United States and Mexico, reaching over 30.5 million households. This success is not just due to our branding or the talent of our marketing team. It is the result of a closed cycle: vertical integration, heavy investment in technology, and an investment in people, which is our core purpose.

A major differentiator is our turnover rate, which is among the lowest in the industry. We maintain around 1% rotation across our more than 600ha of production, while the industry average can exceed 200%. This stability is what allows us to deliver such a consistent product. When a consumer picks up our packaging, which incorporates 82% of recycled materials, the product tastes the same in December as it did in January.

That consistency in quality and flavor is what differentiates us and makes us market leaders. Our formula for success is the combination of our associates, our social purpose, technological investment, and strong branding. All of these factors together allow us to reach the market with the best peppers, cucumbers, and tomatoes in every presentation, color, and size.

Q: How does NatureSweet manage the different drivers of labor shortages across North America?

A: Our low turnover is supported by our Fair Trade and B Corp certifications. These credentials matter to retail chains, but they are also essential tools for managing labor in a highly competitive market. Mexico has become the epicenter of a labor shortage, and the traditional agricultural model is gone. Today, we compete directly with the automotive and aerospace industries for the same talent, especially in regions like the Bajio. We essentially have the same hiring requirements as those sectors.

This competition forces us to be much better at people management. While natural resources are a challenge, labor availability is one of our greatest hurdles. We also face the inherent risks of traditional agriculture: cloudy days, extreme temperatures, and pests. Even with protected agriculture, environmental variations create planning challenges.

The real professionalization happens at the field level. It is not just about general labor; we need specialists in pruning, thinning, and pollination. There is a steep learning curve to reach peak efficiency. This is why low turnover is critical. When a worker becomes a professional, they earn more, and our quality improves. A single mistake during plant handling, like breaking the head of a vine, results in a permanent loss of production density. You cannot simply replace that growth; that cluster is gone.

Our agronomists must also be specialists in high-tech greenhouse systems. This type of farming is more aggressive and faster than traditional methods. We require experts who can manage thermal levels, conductivity, and drainage across various structures. Unlike a manufacturing plant that makes identical screws, our production never stops. If you do not harvest and pack every single day, you lose. We operate at the pace of manufacturing but with a complex biological component.

Q: What are the main technologies a company like NatureSweet considers now non-negotiable for operating in the market? 

A: Our non-negotiables start with the greenhouse structure itself. Advanced irrigation systems are essential for resource efficiency, ensuring we maximize the use of fertilizers and water in both organic and conventional crops. I prefer dynamic greenhouses that allow us to rotate different crops within the same area rather than being restricted to a single variety.

The most advanced facilities now include heating and CO2 systems to control temperature, alongside tools like phytomonitors and fertilizer scales. These technologies do more than improve decision-making; they generate savings by providing total control over inputs to optimize our output. We are also investing in internal technology for pest and disease detection, as well as equipment like electric carts and hanging gutters that improve physical efficiency and offer a strong return on investment.

Q: For a big company, how does a successful producer-tech supplier relationship look? 

A: The relationship between providers and clients has evolved significantly. Twenty years ago, technology was one size fits all, but because Mexico is now such a major global client, the industry has developed solutions specifically for our climate. We now have access to plastics designed for Mexican light and temperature conditions, as well as structures with customized post widths and load capacities. While three or four foreign companies remain deeply involved here, Mexican firms have developed their own competitive technologies. These local companies now compete directly with the original leaders from the Netherlands, Spain, and France, proving that Mexico has become a hub for high-level agricultural innovation.

Whether working with the major foreign firms or the increasingly competitive Mexican companies, the goal is a partnership that treats Mexico as a hub for innovation rather than just a market for standard equipment.

Q: How do you maintain a score that is more than double the industry median as the company scales its footprint?

A: We maintain a team dedicated exclusively to B Corp certification, which strengthens our market position and enhances our internal operations. This commitment ensures we meet high standards for social and environmental performance, legal accountability, and transparency. It is a difficult process. The only way we have succeeded is through consistent investment. We have specialized staff focused solely on managing these certifications, and we allocate significant financial resources to this area every year.

Beyond the investment, we work hard to educate our associates on the importance of these standards, as they are the ones who ultimately help us maintain them. We have found that this dedication benefits both our people and our consumers. It is not necessarily about a direct financial return; rather, it is a personal decision and a commitment by the company because we believe it brings a fundamental value to the business.

Q: What are the challenges the sector must overcome to remain competitive in the short term?

A: The tomato industry faces several critical challenges, starting with tariffs. As a producer of tomatoes, peppers, and cucumbers, we view the resolution of these tariffs as a priority. The tomato industry must remain high on the agenda during USMCA negotiations. While the Mexican government has been active in supporting us through this process, the industry has already seen a significant impact on total planted hectares across the country.

Water management is another urgent priority. Recent changes to water laws require us to implement better controls and invest in technology, ranging from basic technical improvements in irrigation canals to sophisticated systems that allow for water recirculation and maximum resource efficiency.

Labor availability remains a constant hurdle. We must continuously find better ways to attract talent and professionalize our workforce to avoid high turnover. Simultaneously, we are dealing with rising input costs beyond our control, including international fertilizer prices, fuel, and natural gas. While we support the constant wage increases in Mexico, the agricultural sector is a massive employer, and these rising costs, coupled with a strong peso, put immense pressure on exporters who see their dollar-denominated returns shrink when converted.

Finally, we must always contend with environmental variables like climate change, pests, and diseases. These are the constants of our industry, and navigating them alongside these economic and regulatory pressures represents the most significant challenge for the future of Mexican agribusiness.

Q: What are the company’s objectives for 2026? 

A: Our primary objective is to maintain our position as category leaders. We remain fully committed to vertical integration, which means focusing on growth that is accelerated yet controlled to preserve the integrity of our model. Over the next two years, we will continue this expansion while doubling down on innovation. We are developing new products, flavors, colors, and packaging to make consumption more attractive and encourage consumers to explore new varieties.

Whether we are exporting to Canada, the European Union, Asia, or the United States, or serving the domestic market, our goal is to promote the excellence of Mexican produce. We want to demonstrate that what is grown in Mexico is of the highest quality and can compete with any product in the world. Ultimately, we aim to keep elevating Mexico's reputation globally through the consistency and quality of everything we do.

NatureSweet is a US-based controlled-environment agriculture company and a producer of premium branded snacking tomatoes, peppers, and cucumbers in North America. The organization operates a vertically integrated model, managing from seed research and greenhouse cultivation to packaging and retail distribution.