Key Takeaways:
- In a recent interview with Harry Duran, Juan Succar discussed how Verde Compacto has pivoted to standardize its container farm offerings, creating a streamlined process for both product lines and customer engagement.
- The company has seen an uptick in vertical farming awareness in Mexico and Latin America, as well as a growing ecosystem around its headquarters.
- Verde Compacto’s main product, the Huvster Container Farm, aims to provide cost-effective, high-quality, and scalable indoor farming solutions.
- Verde Compacto is now developing smaller, home-based vertical farming units and plans to expand sales in North America.
Standardizing for Success: How Verde Compacto Refined Its Product Offerings
In a recent interview with Harry Duran on the Vertical Farming Podcast, Juan Gabriel Succar, Co-founder of Verde Compacto, shared the company’s journey of refining its indoor farming solutions and adapting its product strategy to meet evolving customer needs. Established in 2016, Verde Compacto pioneered Latin America’s indoor vertical farming space, and by 2019, launched its first product, the Huvster Container Farm. Over the past two years, Succar and his team have focused on streamlining Verde Compacto’s product offerings, moving away from highly customized projects to a standardized container farm catalog.
“We realized the importance of focusing our efforts,” Succar shared. This shift allowed Verde Compacto to reduce costs, speed up project timelines, and cater more effectively to clients ready to invest in vertical farming at a commercial scale. The company has refined its operations, instituting a minimum project ticket of $500,000 for customized builds and focusing on standard models for the general market. This change, Succar believes, has positioned Verde Compacto to meet the demands of a diverse clientele.
Learning from Experience and Building for the Future
Juan Gabriel Succar acknowledged that while Verde Compacto has learned valuable lessons from past challenges, the most significant growth has come from listening to its customers and integrating industry insights. This adaptive approach led to expanding the company’s advisory board to include experts across various fields, refining both product strategy and customer engagement. In a recent organizational shift, Succar transitioned to President of the Board, while Co-founder Jorge now serves as CEO, overseeing operations. This change has enabled Succar to focus on growth strategies and international expansion, particularly in North America.
Expanding into New Markets with the Huvster and Beyond
Verde Compacto’s main product, the Huvster Container Farm, offers an accessible entry point into the indoor farming industry for customers with an interest in growing leafy greens. The company has also developed other specialized container farms for products like strawberries and mushrooms, though these remain in limited use. Verde Compacto is launching a new product line called the Huvster Home, a micro-farming solution for residential use, aimed at bringing vertical farming to individual homes. This unit, smaller than a refrigerator, is set to retail under $1,500 and offers an easy, aesthetically pleasing way for consumers to grow fresh produce at home. While the product is currently in pre-sale in Mexico, Verde Compacto plans to explore larger-scale distribution in the future.
Juan Gabriel Succar emphasized that Mexico has seen an exponential rise in vertical farming awareness, with local media and national drought conditions highlighting the importance of water conservation. Verde Compacto’s early market presence has allowed it to lead this growth, and Succar expressed pride in fostering a “vertical farming ecosystem” around their headquarters. The company is now working on partnerships to expand its distribution and plans to formally enter the U.S. market in 2025.
Navigating the Landscape: Shifts in Investor Interest and Market Demand
In the last two years, the global vertical farming industry has undergone several shifts, especially with prominent companies facing financial struggles. Succar pointed out that while some investors were initially wary, the industry’s outlook has since stabilized, with investors now showing more interest in sustainable, profit-focused solutions. Verde Compacto’s emphasis on securing produce markets, ensuring price stability, and focusing on scalable operations aligns with this new wave of investment. Juan Gabriel Succar noted that they are seeing increased interest from investors who appreciate Verde Compacto’s value proposition and commitment to sustainable agriculture.
