NotCo Secures $235M to Expand Plant-Based Food Line

NotCo Secures $235 Million in Series D Funding

NotCo, a pioneering food technology firm specializing in plant-based alternatives to traditional milk and meat products, recently finalized a substantial $235 million Series D funding round.

This investment has propelled the company’s valuation to $1.5 billion.

Investment Details and Key Participants

Tiger Global spearheaded the funding initiative, with participation from a diverse group of new investors.

These include DFJ Growth Fund, ZOMA Lab – a social impact foundation – and prominent figures such as athletes Lewis Hamilton and Roger Federer, alongside musician and DJ Questlove.

Existing investors, including Bezos Expeditions, Enlightened Hospitality Investments, Future Positive, L Catterton, Kaszek Ventures, SOSV, and Endeavour Catalyst, also contributed to this round.

Company Growth and Funding History

This latest funding follows a previous undisclosed investment in June from Danny Meyer, the founder of Shake Shack, through his firm EHI.

To date, NotCo, which maintains operational roots in both Chile and New York, has successfully raised over $350 million, as confirmed by founder and CEO Matias Muchnick.

Current Product Lines and Market Presence

Currently, NotCo offers a portfolio of four distinct product lines:

• NotMilk
• NotBurger and NotMeat
• NoticeCream
• NotMayo

These products are presently available in five key countries: the U.S., Brazil, Argentina, Chile, and Colombia.

The Rise of Alternative Proteins

NotCo is strategically positioned within a growing trend towards healthier eating habits.

Increasing consumer awareness regarding food production methods is driving demand for alternative protein sources.

Industry research from Boston Consulting Group and Blue Horizon Corp. forecasts the market for alternative meat, eggs, dairy, and seafood to reach $290 billion by 2035.

Giuseppe: The AI-Powered Innovation

At the heart of NotCo’s innovation lies Giuseppe, a proprietary artificial intelligence technology.

Giuseppe expertly matches animal proteins with optimal plant-based replacements from a vast database of thousands of ingredients.

The technology focuses on deciphering the molecular components and food characteristics necessary to replicate the qualities of milk, but in a more sustainable and efficient manner, while also prioritizing taste – a critical factor for consumer acceptance, Muchnick explained.

Consumer Preferences and Technological Advancement

“Our research indicates that 60% of current plant-based consumers are dissatisfied with the existing taste options,” Muchnick stated.

“Furthermore, 30% of traditional cow’s milk drinkers are open to switching if a comparable taste experience is available.”

“Leveraging the power of AI, we aim to revolutionize the food system and develop products more rapidly and effectively than our competitors.”

With 300,000 plant species existing, Muchnick emphasizes the untapped potential, noting that the capabilities of 99% of them remain unknown.

Expansion and Market Growth

Following the launch of its NotMilk brand in the United States seven months ago, the company is on track to be available in 8,000 retail locations, including Whole Foods Market, Sprouts, and Wegmans, by the end of 2021.

Muchnick intends to utilize the new funding to expand into Mexico and Canada, while also strengthening its market position in the U.S. and Chile.

He anticipates that the U.S. market will contribute 50% of the company’s revenue within the next three years, with further expansion planned into Asia and Europe within the coming year.

Future Product Development and R&D

NotCo plans to broaden its product range to include alternatives like chicken, other white meats, and seafood.

Significant investment will also be directed towards technology and research & development.

The company expects to double its current workforce of 100 employees over the next two years.

Muchnick also aims to secure additional patents in food science – building upon the company’s existing five – and explore potential opportunities within the intelligence sector of the business.

Unicorn Status and Strategic Partnerships

Achieving unicorn status is a significant milestone for NotCo, but Muchnick highlights the importance of increased brand awareness and subsequent sales growth.

This status also facilitates partnerships with quick-service restaurants, such as the successful introduction of NotBurger into Burger King restaurants in Chile, where it now holds a 5% market share.

Strong Sales Growth and Public Offering Plans

Over the past four years, NotCo has experienced annual sales growth of three times, a factor that attracted the attention of Tiger Global.

Muchnick expressed enthusiasm about collaborating with Tiger Global, particularly as the company prepares for a potential public offering within the next two to three years.

He believes Tiger’s expertise will ensure NotCo is well-prepared for this transition.

Tiger Global’s Perspective

“NotCo has created world-class plant-based food products that are rapidly gaining market share,” stated Scott Shleifer, partner at Tiger Global.

“We are excited to partner with Matias and his team and expect continued product innovation and expansion into new geographies and food categories will fuel high and sustainable growth for years to come.”