- Jeff Bezos invested $30 million dollars in entrepreneurship in Chile.
- The startup, called NotCo, finds sustainable alternatives to the animal-based dairy products we love.
- Chilean scientists and researchers are using artificial intelligence and new food technology to create in-demand products for an environmentally conscious generation.
- As startups in Latin America draw more international attention, so does the US’s interest in building business relationships with the region.
What do Jeff Bezos and mayonnaise have in common? Probably more than you think, considering the $30 million dollars he decided to invest in a Chilean startup that drew international attention.
NotCo just cracked the code for replicating our favorite dairy-based products using the right combination of plant-based materials, churning out this not so mayonnaisey mayo– literally called Not Mayo.
The startup implements artificial intelligence and machine learning to recreate the exact taste of our favorite dairy classics – without using dairy.
Jeff Bezos Jumps Quickly on Smart Chilean Investment
Entrepreneurship in Chile is booming.
Ever heard of a delicious mayonnaise without eggs, lactose, or even soy? Neither had Jeff Bezos – which is why the startup that created it caught his attention.
The Latin American startup produces dairy-free mayo. In addition, they are on a mission to find delicious substitutes for other animal-based products. For example, milk, cheese, and yogurt.
Jeff Bezos has several obvious business incentives. Billions of people consume dairy products every day. A considerable chunk of those consumers are becoming more conscious of the costs that animal-based consumption has on the planet.
Shout out: Millennials.
As millennials become the world’s most powerful consumers, they will likely use their purchasing power to propel businesses like NotCo to the top of global market shares.
In addition, plant-based ingredients are cheaper to produce than their animal-based counterparts. Cheaper ingredients for an already in-demand product? That’s a win-win.
On top of that, NotCo has perfected one of the most desirable products in the Chilean basket of goods. In fact, they have attained 10% of the market share in only a matter of 2 years.
But why is Jeff Bezos so interested in this Chilean start-up in particular?
Growing U.S. Interest in Latin American Business Relationships
Bezos’ investments in the growing market of food technology are many. For example, his recent Whole Foods acquisition. In addition, his investments in military-grade food packaging.
The world’s wealthiest man is licking his fingers as he expands his reach into the $700 billion dollar grocery market.
But Bezos knows of other business opportunities he can capitalize on outside of his US-based investments. As a matter of fact, this explains Bezos’ business in Latin America recently.
He’s not the only one, either. For example, other American businesses like Walmart have tried and failed to expand in Latin America due to a lack of cultural understanding and business knowledge in the region.
Bezos won’t quit, however, and knows that there is too much potential for larger returns on investment with the right Latin American venture – and he’s looking directly at innovation in food tech. Fortunately for him, he seems to have found a foot in the kitchen door to Latin American business expansion with NotCo.
What Does this Mean for US and Latin American Business Relations?
NotCo will expand to Brazil this month, followed by plans to kick off operations in the U.S. early 2020. The global scalability of NotCo was something that originally attracted Bezos to the business. This could potentially serve as a model for future startups in Latin America.
As more tech startups follow suit and gain momentum, there will be more business relations between the U.S. and Latin America, building a bridge between the languages and business practices of the regions.
In other words, entrepreneurship in Chile is just one sign of this upward trend. If you want to learn more about business trends in the region, check out the economic outlook of Latin America in 2019.
Looking to market your product or service in Latin America? Reach out to us if you need help bridging the business gap for your business between Latin America and the US.