TruStory 

Del Huerto Colombia

The company

Del Huerto is dedicated to processing and marketing of fruits and vegetables to restaurants. The company processes vegetables and fruits that meet quality standards for human consumption as well as the technical requirements of its customers, mainly restaurants in the Valle del Cauca in South-West of Colombia.

The entrepreneurs

Del Huerto y Más S.A.S. is a Colombian company based in Cali. Established in 2008, the company specializes in processing fruits and vegetables, encompassing cutting, cleaning, disinfection, cold chain refrigeration, and packaging. By optimizing and enhancing hygiene and safety protocols, as well as the preparation of dishes and recipes, the company contributes significantly to the food industry. Furthermore, Del Huerto actively markets these processed products to numerous prominent restaurants. Its primary clientele in the Valle del Cauca region is situated in five major cities: Cali, Palmira, Buga, Tuluá, and Yumbo.

The company is a family business where the majority shareholding belongs to the family and Truvalu has become a partner. Lilia Marcela Torres and Marlon Sánchez both have at least 15 years of experience in the sector and run the company. Together they identified an opportunity for Del Huerto to establish a link with an important franchise in Colombia with good growth potential. Marlon Sánchez acts as the general manager.

“Truvalu’s business development services have brought us many benefits, such as getting to know our business more thoroughly, understanding that it is important to make financial projections and that one as an entrepreneur does not have all the capabilities that one would like to have to move a company forward”. Marlon Sanchez, CEO

Social Impact

Del Huerto employs 19 dedicated individuals, ensuring that they receive salaries above the minimum wage in Colombia, along with all relevant benefits. It’s worth noting that half of the workforce consists of women.

The company places great importance on the role played by small producers who supply their raw materials. Currently, Del Huerto collaborates with a network of over 53 small producers from various regions in Colombia. Many of these producers operate in areas marked by security issues and poverty.

As the General Manager, Marlon Sanchez actively visits the rural production areas to verify product quality and negotiates deals that are mutually beneficial for both the smallholders and Del Huerto. The company is committed to providing training to these producers in agricultural packaging and transportation practices to maintain the quality and distinctive value of their offerings.

In 2022, Del Huerto sourced approximately 50% of its income from purchasing raw materials from small producers, amounting to around EUR 205,000. This translates to an average monthly income of EUR 330 per producer.

Looking ahead to 2023, the company is exploring the possibility of integrating a producer association located in Nariño, which would expand its positive impact to 75 additional producers.

“Participation in the acceleration programme took us from one level to another very quickly, making us very aware of what is happening internally within our company”. Marlon Sanchez, CEO

Co-entrepreneurship

  • Del Huerto participated in an acceleration process in 2021 and 2022. The company’s different capabilities and challenges in the areas of finance, sales and operations were explored. Based on the analyses made, support was provided to the entrepreneurs in defining the right business model and growth strategy.
  • Additionally, the company received an investment from Truvalu to finance the acquisition of machinery to improve production processes, herewith increase capacity, be certified in good food production practices and close important deals with new clients.
  • One of the items that received financing was the recruitment of new professionals for various roles within the company’s human talent structure. These areas included production, finance, accounting, sales, and treasury. This move has provided the company with the opportunity to conduct more in-depth analyses of its costs and, consequently, increase its EBITDA. By hiring a dedicated professional for the sales department, the company initiated the exploration of new clients, leading to an expansion of its presence in the restaurant market. The company also invested in pre-financing the harvest hectares of its most important raw material (lettuce) to ensure a stable availability and strengthen its relationship with the supplier. As a result, Del Huerto was able to maintain its raw material costs stable and improve its margins.
  • After the investment, Truvalu provided support to develop commercial strategies that led to the hiring of an extra salesperson for the company and deal making with new clients. Truvalu will now continue to accompany Del Huerto in the process of structuring its new production processes.