September 20, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Blue Road Capital, an independent investment firm focused on vertically integrated food and agriculture opportunities, announced its acquisition of NatureSweet, the largest vertically integrated agriculture company in North America, from Silver Ventures for an undisclosed sum. 

Founded in 1990, NatureSweet is a leader within the fresh produce industry. Over the course of its existence, the company has grown to produce greenhouse tomatoes, sweet peppers, and cucumbers across more than 1,400 acres on a year-round basis. Its produce is grown, harvested, and packaged by more than 6,000 directly employed employees and is sold through major supermarkets throughout the U.S., Mexico, and Canada. 

The company is the creator of branded snacking tomatoes, and is the top selling North American brand and an emerging force in greenhouse-grown peppers and cucumbers, leading to it being the world’s largest CEA company to have achieved Fair Trade Certification, Equitable Food Initiative (EFI) Certification, and B Corp Certification.

“NatureSweet was built on a vision of agricultural workers ‘who look up’”, said Kit Goldsbury, chairman, Silver Ventures. “Everyone is proud to have been a part of our associates’ journey to not only transform their own lives but also to be a force in the transformation of the entire industry.”

This acquisition reflects Bue Road’s commitment to pursuing and accelerating growth through investing in vertical integration and innovation, and expanding into new distribution channels. And as in this case, when Blue Road moves, it usually moves in a big way. 

Examples include the firm’s 2019 acquisition of B&W Quality Growers, one of the leading vertically-integrated producers of a range of baby/specialty leafy greens, including watercress and arugula. At the time, the addition of B&W to its portfolio represented the formation of its third investment platform, and a foundation from which to build out a new channel for growth.

In 2021, Bue Road went on to expand in a new direction when it announced its acquisition of Natural American Foods (Sweet Harvest), a Minnesota-based natural sweeteners platform and one of the largest honey processors in North America, from an affiliate of Peak Rock Capital. 

In 2020, the global honey market was valued at $9.21 billion with an expected CAGR of 8.2 percent, according to Grand View Research, while Statista concluded that the global honey market will be worth more than $11 billion by 2027. 

John Duryea, founding partner of Blue Road, stated at the time that within this massive market, the firm anticipated partnering with Sweet Harvest in its growth objectives and in add-on opportunities.

And that’s exactly what happened. In January 2022, Sweet Harvest Foods announced the acquisition of Nature Nate’s Honey – the largest honey brand in the U.S. and the leading provider of 100 percent raw and unfiltered honey to the retail sector.

As consumers continue to focus on their physical and mental wellbeing, sales of natural and organic products are expected to surpass $300 billion this year. And with an increased awareness of the intersections of food and overall health, sugar has come under intense scrutiny, with 33 percent of Americans identifying it as likely being the main cause of weight gain, and behind a range of health issues such as diabetes, cancer, and heart disease, according to IFIC data. 

Well situated to benefit from these shifts and trends is honey – an ancient clean and natural ingredient including vitamins, minerals, and calcium with a reputation for benefiting cholesterol levels, blood pressure, metabolic activity, and being used as an antimicrobial and antifungal agent – that has possibly benefited most from health-conscious consumers turning on sugar.

And this latest deal for NatureSweet also taps into key consumer trends that lean heavily toward fresh produce and natural foods. Demand is expected to continue to climb in the coming years, with predicted global annual market growth of 5.14 percent to 2027, potentially growing to a market value of $210.9 billion, according to Produce Pay. 

Given Blue Road’s track record of building successful, fully integrated platforms within promising verticals of the food and ag ecosystem, this market outlook can only bolster its latest endeavor. 

“We are confident in Blue Road’s ability to lead NatureSweet into a promising future,” said Bryant Ambelang, CEO, Silver Ventures and former executive chairman, NatureSweet. 

“They understand the value of this company lies in its people and are committed to the principles of growing the best-tasting produce through transforming the lives of agricultural workers. NatureSweet is transitioning into capable and caring hands.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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