The Chilean foodtech is looking to reduce costs after changing the estimated date when the company would become profitable from 2024 to 2027.

NotCo announced that it has decided to close its offices in New York, along with leaving Kraft Heinz as the company responsible for selling its products in the United States and Canada.

The information was confirmed by the company's CEO and co-founder, Matías Muchnick, to Bloomberg . According to Diario Financiero , the Chilean startup is looking to reduce costs, after its estimates led to a change in the estimated date when the company would be profitable, going from 2024 to 2027.

This also means that it is more difficult to raise funds, given the recent macroeconomic situation (inflation, high interest rates and political issues).

For this reason, the company decided to take this agreement with Kraft Heinz in parallel to the one already made in 2022 to create vegetable versions of the products of the renowned sauce brand.

The Chilean company had previously decided to lay off approximately 11% of its workers, along with cutting back on some products. According to Muchnick, it no longer plans to expand into new food lines.

"There are times when you have a spectacular product, but because the contribution margin is not enough, you have to take it out," said the CEO of NotCo, as quoted by DF .

In this scenario, the firm expects to be profitable in Chile and Argentina during the second quarter of this year, while Mexico and Brazil would be profitable in 2026.

Muchnick's focus now is on innovation and leveraging AI licensing to obtain resources, so he does not foresee any new cost-cutting measures.