NotCo Exits Brazil and Mexico to Focus on AI Platform

Chilean food tech unicorn NotCo has sold its Brazilian business and reportedly shut down its Mexican division. These moves are part of a strategic shift away from direct food manufacturing toward becoming an artificial intelligence (AI) product development partner for major food companies.

The company sold its Brazilian arm to the investment group Ferrara. In a LinkedIn post, NotCo stated the deal would accelerate the brand's expansion in Brazil through enhanced distribution and local market synergies. Simultaneously, Chilean newspaper Diario Financiero reports the company closed its Mexican business after failing to find a buyer due to poor results.

These exits follow NotCo's earlier sale of its Argentina and Uruguay operations to food giant Molinos Río de la Plata in June. Chile is now the only market where NotCo directly manages its business, but sources told Diario Financiero that even the home market operations could be sold if they do not become profitable by year's end.

The pivot to an AI-first business model

NotCo is pivoting from food production to licensing its proprietary AI platform, named Giuseppe. The system analyses animal protein structures to find plant-based ingredient combinations that replicate their taste and texture. This AI-driven approach previously helped NotCo develop its flagship NotMilk and a wide range of other products.

The company is now focusing on licensing this technology to large food corporations. Clients include Nestlé, Barry Callebaut, PepsiCo, Mars, and Mondelēz International. To show this shift, NotCo replaced its original corporate website with one dedicated to its NotCo AI division earlier this year.

Workforce reductions accompany market exits

The strategic pivot has involved significant workforce reductions. NotCo's global employee count has fallen from a peak of over 300 to fewer than 100. In July, the company laid off around 20 staff in research and development, kitchen, AI, and marketing teams in Chile and the US. The sale of the Brazilian business to Ferrara did not include a transfer of NotCo's 30 employees there, whose contracts reportedly ran until the end of September.

NotCo began this shift in 2024 by transferring its US and Canadian business to Kraft Heinz, a former co-manufacturing partner. It also closed its New York office in 2025.

Leadership and legal context

Co-founder and CEO Matias Muchnick expressed satisfaction with the Brazilian sale in a LinkedIn post. He highlighted the achievement of building a Chilean company that became the second-largest national player in plant-based beverages. "It's unprecedented. And that must continue," Muchnick stated.

In a separate development, Chile's Supreme Court ruled in May that NotCo could continue using the name 'NotMilk' but must remove the word 'milk' and related imagery from its packaging. This ended a five-year legal battle with the local dairy industry.

The consolidation at NotCo reflects a broader trend. An analysis by Green Queen indicates that more than 85 alternative protein companies have been acquired, merged, gone bankrupt, or shut down in the past two years.