The Not Business, Latin America’s leading contender in the plant-based meat and dairy replacement market, will close on an $85 million round of funding that would value it at $250 million, according to sources knowledgeable about the company’s strategies.
The current round of financing begins the heels of a series of successes for the Santiago-based business. In the 2 years since NotCo released on the worldwide stage, the company has expanded beyond its mayo item into milk, ice cream, and hamburgers. Other products, consisting of a chicken meat alternative are likewise on the product roadmap, according to people familiar with the business.
NotCo is already selling a number of products in Chile, Argentina and Latin America’s biggest market– Brazil– and has signed a hit deal with Burger King to be the chain’s provider of plant-based hamburgers. It remains in this Hamburger King offer that NotCo’s method to protein solution is paying dividends, sources said. The company is accountable for selling 48 sandwiches per shop per day in the places where it’s supplying its products, according to one person acquainted with the data. That figure surpasses Difficult Foods per-store sales, the individual stated.
NotCo is also now offering its burgers in supermarket in Argentina and Chile. And while the company is not recover cost yet, sources stated that by December 2021 it could be– or potentially even capital positive.
NotCo co-founders Karim Pichara, Matias Muchnick, and Pablo Zamora. Image Credit: The Not Business With the growth both in sales and its diversification into new products, it’s little marvel that investors have taken note.
Sources said that the consumer brand focused private equity company L Catterton Partners and the Biz Stone-backed Future Positive were likely investors in the brand-new financing round for the company. Previous financiers in NotCo include Bezos Expeditions, the personal investment firm of Amazon creator Jeff Bezos, the London-based CPG investment company, The Craftory, IndieBio and SOS Ventures.
Alternatives to animal products are a substantial (and still growing) category for venture investors. Previously this month Perfect Day closed on a second tranche of $160 million for that business’s newest round of financing, bringing that business’s total capital raised to $361.5 million, according to Crunchbase. Perfect Day then turned around and released a customer food organisation called the Urgent Company.
These recent rounds verify our reporting in Additional Crunch about where financiers are focusing their time as they try to develop a more sustainable future for the food market. Learn more about the path they’re charting.
Large food chains continue to experiment with plant-based menu items and press even more afield into cell-based meat using cultures from animals. KFC recently announced that it would be expanding its explore Beyond Meat’s chicken replacement in the U.S.— and would likewise be explore cultured meat in Moscow.
Behind all of this activity is an acknowledgement that customer tastes are changing, interest in plant-based diets are growing, and animal agriculture is having extensive effects on the world’s environment.
As the website ClimateNexus notes, animal farming is the second-largest contributor to human-made greenhouse gas emissions after fossil fuels. It’s also a leading cause of air, water and logging pollution, and biodiversity loss.
There are 70 billion animals raised every year for human intake, which inhabit one-third of the planet’s land arable and habitable land surface, and consume 16% of the world’s freshwater supply. Decreasing meat usage in the world’s diet could have big ramifications for reducing greenhouse gas emissions. If Americans were to replace beef with plant-based substitutes, some studies recommend it would minimize emissions by 1,911 pounds of carbon dioxide.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.