NotCo has confirmed the Chile-headquartered plant-based start-up has pushed back its target for reaching group-wide profitability from as early as this year.
The set-back to 2027 was first reported by Bloomberg, based on an interview with NotCo’s CEO Matias Muchnick.
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However, based on communication with Just Food and the news agency’s interview, NotCo has suggested its operations in Latin America and Mexico will reach profitability goals before 2027.
“While we remain committed to profitability across all business units, we now anticipate reaching profitability by 2027,” a spokesperson for NotCo told Just Food.
However, NotCo’s own-branded business, NotCo Foods, is “on track to reach profitability as early as 2025”.
Muchnick told Bloomberg that its Chilean and Argentine operations are expected to become profitable by the second quarter of this year, while Mexico and Brazil are likely to reach that goal in 2026.
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By GlobalDataNotCo also confirmed via the spokesperson that it had laid off about 11% of its workforce in November 2023 under a restructuring exercise to “optimise operations” in order to “enhance efficiency and ensure long-term sustainability”.
The spokesperson added: “Despite these adjustments, NotCo remains a strong and growing organisation, dedicated to advancing plant-based innovation and expanding its market presence.”
Muchnick also confirmed in Bloomberg’s interview that the company had closed its office in New York last year.
NotCo entered a partnership with Chicago-based US food major Kraft Heinz in 2022 (The Kraft Heinz Not Company) to co-develop, produce and market plant-based proteins in North America, excluding Mexico.
Muchnick told Bloomberg that Kraft Heinz will now take over the sale and marketing of the products in the US and Canada. Kraft Heinz told Just Food via a spokesperson that the US company is “overseeing the supply chain” for the joint venture.
The spokesperson for NotCo added: “NotCo, in collaboration with Kraft Heinz, made the strategic decision to consolidate its operational efforts in the US and Canada, [while] expanding the portfolio within the joint venture.
“The JV is now the primary vehicle for the commercialisation of plant-based food products for both companies in these markets. At the same time, NotCo remains firmly focused on its food business in LATAM, where it continues to experience solid growth.”
