The Not Company, Latin America's leading competitor in the meat and milk substitute market, is close to closing a $ 85 million financing round, which is worth $ 250, according to sources familiar with the company's plans Would have millions of dollars.
The latest round of financing follows a series of successes for the Santiago-based company. In the two years since NotCo was launched worldwide, the company has expanded beyond its mayonnaise product to include milk, ice cream and hamburgers. Other products, including a chicken substitute, are also on the product roadmap, according to people familiar with the company.
NotCo already sells several products in Chile, Argentina and Latin America's largest market – Brazil – and has signed a blockbuster agreement with Burger King to be the supplier of the chain for plant-based burgers. In this Burger King deal, NotCo's approach to protein formulation pays off. According to a person familiar with the data, the company is responsible for selling 48 sandwiches per store per day at the locations where it delivers its products. That number exceeds Impossible Foods sales per store, the person said.
NotCo now sells its burgers in grocery stores in Argentina and Chile. And although the company is not yet balanced, sources said it could be until December 2021 – or possibly even a positive cash flow.
Given the growth in sales and diversification into new products, it is no wonder that investors have taken note of this.
Sources said consumer-branded private equity firm L Catterton Partners and Biz Stone-backed Future Positive were likely investors in the company's new round of financing. Previous NotCo investors include Bezos Expeditions, the personal investment firm of Amazon founder Jeff Bezos; London-based CPG investment firm The Craftory; IndieBio; and SOS Ventures.
Alternatives to animal products are a large (and still growing) category for risk investors. Earlier this month, Perfect Day closed a second tranche of $ 160 million for the company's last round of financing and, according to Crunchbase, brought the company's total capital to $ 361.5 million. Perfect Day then turned and started a grocery store called Urgent Company.
These recent rounds confirm our reporting in Extra Crunch about where investors are concentrating their time to create a more sustainable future for the food industry. Read more about the path they draw.
In the meantime, large food chains continue to experiment with plant-based menu items and continue to penetrate cell-based meat with animal cultures. KFC recently announced plans to expand its Beyond Meat chicken replacement experiment in the United States – and to experiment with meat in Moscow as well.
Behind all of these activities is the knowledge that consumer tastes are changing, interest in plant nutrition is growing, and animal husbandry has a profound impact on the global climate.
According to the ClimateNexus website, animal husbandry is the second largest contributor to man-made greenhouse gas emissions after fossil fuels. It is also a major cause of deforestation, water and air pollution and biodiversity loss.
Every year, 70 billion animals are raised for human consumption, which take up a third of the arable and habitable land area of the planet and consume 16% of the world's fresh water supply. Reducing meat consumption in the global diet could have an enormous impact on reducing greenhouse gas emissions. If the Americans replaced beef with herbal substitutes, some studies suggest that it would reduce emissions by 1,911 pounds of carbon dioxide.