Chilean foodtech firm NotCo, known for its innovative plant-based products like NotMilk, is shifting its focus from consumer branding to leveraging artificial intelligence (AI) for business-to-business (B2B) partnerships. Co-founder and CTO Dr. Karim Pichara revealed that the company anticipates generating the majority of its revenue from its AI technology within the next three years. This pivot marks a significant transformation in NotCo’s business model, as it aims to provide AI-driven solutions for major consumer packaged goods (CPG) companies looking to develop and optimize their products.
NotCo’s initial foray into the US market in 2020 showcased its branded consumer products, but the company has recently redirected its efforts toward B2B services. “Kraft Heinz was our first B2B partnership, but we also have a bunch of new partnerships with big CPGs looking to create entirely new products from concept to final formulation,” Pichara stated. This strategic shift comes as the food industry grapples with evolving regulations and the need for cost-effective solutions. NotCo’s AI platform, Giuseppe, has been instrumental in this transition, enabling the company to optimize formulations and identify novel ingredient combinations efficiently.
The potential of NotCo’s technology extends beyond just plant-based products. Pichara noted that their AI capabilities are designed to enhance products across various categories, focusing on elevating existing formulations while maintaining the desired sensory profiles. This approach allows companies to modify their products without compromising on taste or texture, addressing consumer demands for quality while navigating cost constraints. As the company moves toward a software-as-a-service (SaaS) model, it aims to provide its technology directly to other firms, streamlining the product development process.
NotCo’s recent partnership with Kraft Heinz has already yielded co-branded products, including sliced cheeses and mac & cheese, but the future of its branded offerings like NotBurger and NotChicken remains uncertain. The NotCo US website now redirects to its B2B technology site, emphasizing the company’s commitment to AI-driven product development. Industry insiders speculate that it may be more strategic for NotCo to leverage Kraft Heinz’s distribution channels rather than competing for shelf space with its own branded products.
In an exciting development, NotCo has also ventured into the fragrance industry with the launch of its Generative AI Fragrance Formulator. This tool can generate complete fragrance formulations in seconds based on natural language prompts, a process that traditionally required extensive time and expertise. Pichara explained that the AI can optimize multiple variables simultaneously, significantly accelerating the formulation process. This innovation not only enhances efficiency but also opens up new avenues for creating unique scents that evoke specific emotions and memories.
NotCo’s collaboration with Cramer, a Chilean flavor and fragrance company, has allowed the AI to learn from a vast database of fragrance formulations, enabling it to create evocative scents quickly. The potential applications of this technology are vast, with the fragrance market alone valued at over $40 billion. By harnessing generative AI, NotCo aims to revolutionize product development across multiple sectors, including food and fragrance, while providing partners with comprehensive solutions that cover everything from concept to packaging.
As NotCo continues to evolve, its emphasis on AI-driven innovation positions it as a leader in the foodtech landscape. The company’s ability to streamline product development and optimize formulations could not only reshape its own business model but also influence the broader industry, as more companies seek to adopt similar technologies to remain competitive in a rapidly changing market.