NotCo, the Chilean plant-based business set up more than a decade ago, has sold another asset in South America.
Co-founded in 2015 by CEO Matías Muchnick, NotCo started out as a manufacturer of branded alternatives to animal-derived food and drinks with the likes of Not Mayo, NotMilk, NotBurger and NotIceCream.
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However, the business appears to be cementing its model as an AI-centric developer of plant-based products for other FMCG companies following partnerships with Kraft Heinz, PepsiCo and Unilever spin-off, The Magnum Ice Cream Company.
The Chilean company uses AI technology and software it dubs Giuseppe to develop consumer goods.
NotCo sold its operations in Argentina and Uruguay in June, and has moved to offload its business in Brazil. Media reports also suggest the Mexico operations have also been sold.
In a statement provided to Just Drinks, the company said: “NotCo is taking its next step towards a bright future and its two business units with the acquisition of its operation in Brazil by Ferrara, a Brazilian investment group with operations and experience in the food industry.
“After building an incredible business for six years in Brazil, NotCo has managed to reach millions of consumers who choose NotCo every day – and will be able to do so moving forward.”
In a separate LinkedIn post, NotCo said Ferrara is the “owner of a portfolio of leading natural brands in Brazil and the United States”.
Just Drinks has asked NotCo to confirm if the Mexico assets have been disposed of, what assets the Brazil divestment entails and further details on Ferrara.
This publication has also sought to clarify the status of NotCo Foods, which housed the branded parts of the business and is likely one of the two units mentioned in the statement, along with the AI operation.
Meanwhile, NotCo’s statement on the Brazil divestment continued: “This marks an important milestone for NotCo AI as the company continues to accelerate its growth as an AI tech company, with over 35 commercial agreements and active work with 10 of the 15 largest companies in the food industry.
“NotCo is now in advanced deployment phases of its technology with these companies, with more than 70% of its projects completed successfully. This is clear evidence of the role technology and AI play in the consumer-packaged goods industry as NotCo looks to expand its partnerships and capabilities.”
According to the NotCo.AI website, the Giuseppe tool “collapses traditional sequential workflows into a parallel, integrated, computationally-driven operation to hit ambitious innovation targets with unprecedented speed and radical efficiency”.
The PepsiCo partnership delivered NotMayo Doritos mayonnaise and NotChicken Nuggets Flamin’ Hot, while the Kraft Heinz collaboration included Oscar Mayer NotHotDogs and NotSausages.
NotCo added: “This marks the beginning of a new stage that will accelerate the expansion and scale of NotCo’s brand and innovation throughout Brazil, enhanced by a great distribution capacity at a national and international level, knowledge of the local market and synergies with its businesses.”
