The era of Not Kraft Mac’n Cheese may be coming and we're not talking knock-offs. The venerable food giant has a deal in place to not only catch up with but take a leadership position in the movement to plant-based products.
The Kraft Heinz Co. on Tuesday announced a joint venture with a Chilean company that aims to develop plant-based versions of co-branded products.
Kraft Heinz, based in Pittsburgh and Chicago, teamed with TheNotCompany, based in Santiago, to create the joint venture which will operate under the control of Kraft Heinz as The Kraft Heinz Not Co. LLC, leveraging strengths of both.
NotCo., which debuted in 2015, is bringing patented technology and AI solutions to Kraft Heinz’ brands.
Terms were not disclosed.
Kraft Heinz (NASDAQ:KHC) reported 2021 net sales of approximately $26 billion.
“The joint venture with TheNotCompany is a critical step in the transformation of our product portfolio and a tremendous addition to our brand design-to-value capabilities,” Miguel Patricio, Kraft Heinz CEO, said in a prepared statement. “It helps deliver on our vision to offer more clean, green and delicious products for consumers. We believe the technology that NotCo brings is revolutionizing the creation of delicious plant-based foods with simpler ingredients.”
Kraft Heinz Not Co. will be based in Chicago with research and development facilities in San Francisco. It will focus on plant-based innovation across numerous Kraft Heinz product categories although specific ones were not identified in the release.
Lucho Lopez-May, currently NotCo’s North America CEO, will become CEO of the Kraft Heinz Not Co.
In partnering with NotCo, Kraft Heinz aims to leverage its manufacturing and commercial capabilities, with the scale of its global food brands, to set a new standard for plant-based innovation. NotCo has launched products including NotMilk, NotBurger, NotMeat, NotIceCream, NotChicken and NotMayo in the U.S., Canada, Brazil, Argentina, Chile, Mexico, Peru and Colombia
“When we started NotCo, it was our goal to make our technology a catalyzer for a more sustainable food system not only for us, but for other brands and manufacturers who share the same ambition,” Matias Muchnick, NotCo co-founder and CEO, said in a prepared statement. “Today is an exciting milestone for the plant-based industry and shows the power of technology’s role in driving mainstream adoption. We’re thrilled to partner with Kraft Heinz and their iconic brands and work hand-in-hand on building a more sustainable food system.”
It’s not the only effort by Kraft Heinz to reshape the food industry. For example, in October 2018, it launched Evolv Ventures, a $100 million venture fund that invests in early stage companies in the food/retail/consumer arenas and supply chain/robotics/automation sectors. To date, no Pittsburgh-area startups are part of Evolv’s portfolio.
