The Nucolato Adventure: Peeling Back the Layers in Monterrey

After the inital whirlwind of virtual meetings and stakeholder interviews, the time finally came for our team to step onto Mexican soil. With a well-crafted agenda in hand, we flew to Monterrey, keen to explore the fascinating world of Nucolato—a family-owned hazelnut spread company that has become the subject of our sustainable investing research project. What awaited us was an eye-opening journey that deepened our understanding of the business, its workforce, and the complex dynamics that govern it. 

As soon as we landed, it was evident that the owners were as excited about this collaboration as we were. From covering our plane tickets to treating us to delectable local cuisine, the hospitality was overwhelming. It almost felt like a nostalgic return to my consulting days, only with an added layer of complexity that sustainable investing often introduces. 

One of the first things to catch my eye was how Americanized Monterrey felt - car-centric streets, American chain stores, and large food portions. With a thriving local industry fostering an extensive middle and upper-middle class, the city seemed more like a Texan suburb than what one might stereotypically imagine of a Latin American city. This realization underscored the importance of the local customer base in Nucolato's business model. 

Our visit to the plant was meticulously planned over three days with three overarching objectives: 

1. Understanding Production and Business Model: Day one was an eye-opener, as we toured the plant, distribution channels (local supermarkets), and engaged with the some of the production facility workers, management, and office staff. The goal was to dissect the intricacies of the hazelnut spread produc8on. 
2. Workers' Conditions and Lifestyle: On the second and third days, we dug deeper, interviewing production workers and spending 8me with the founder and his wife, who also serves as the head of HR. The challenges faced by workers became evident—long commutes of up to two hours after waking up at 4 a.m., arduous manual labor, and various other inconveniences. 
3. People Dynamics on the Ground: We were there not just to observe but to engage—to look people in the eyes and understand the decision-making dynamics within the organization. 

Each day brought its own set of revelations. The workers' hardships were particularly striking. Long commutes, manual labor, and other inconveniences were part of their daily lives. Despite the hardships, what struck me was the workers' resilience and relative contentment. Many mentioned that conditions at Nucolato were better or similar to other plants. This was a shocking revelation, especially considering some workers endured 12-hour shifts after their exhausting commutes. Yet, the company was far from exploitative. The 4-day workweek and support during personal or family crises stood as a testament to that. 

Our discussions with the founder revealed multiple layers of objectives—market expansion in the U.S., keeping the business family-oriented, creating a long-lasting social impact, and financial sustainability. What started as a task to develop KPIs now feels almost trivial compared to the broader issues we must tackle. 

The passion in the founder’s eyes is far from small, it is very captivating, and three days after the trip I am as excited as he is about the launch of the new chocolate bar product. But with this new bar, the challenge of exponential growth gets only bigger, and so does the workers’ complications. So that same passion that makes a company prosper creates multi-level challenges. That’s even bigger expansion of the scope. While the urge to make a tangible social impact is high it’s critical that we embed this is into the start-up thinking and business framework that the company operates in. Thus, not only do we have to present the problems, but we also need to provide actionable, reasonable, persuasive recommendations. 

One concept I am keen to explore further is the possibility of obtaining a sustainability certification. This could serve as a linchpin for the founder that not only improves the company's financial health by attracting impact investors but also magnifies its social impact. But that, of course, is just one of the dozens of areas we’re yet to explore. 

All in all, the trip was not just about business; it was also intensely human. Looking workers in the eye, noticing their sore hands from tightening hazelnut spread lids, stories of personal struggles like a worker who recently lost his wife has imbued me with a renewed sense of purpose. I can see where our efforts could make a real difference, and it's both humbling and motivating. It is not just about academic learning anymore; it's about tangible change, about seeing where your labor makes a difference in people's lives. 

Despite feeling overwhelmed at times, the project remains an exhilarating challenge. The scope may be ever-expanding, but so is our understanding and resolve to make a meaningful impact. We have a long journey ahead, filled with obstacles and opportunities alike, but it's a journey we are keen to continue.