June 8, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Nestlé has announced a new partnership, making a committed capital investment through its Sustainability Fund in The Yield Lab Latam, a specialized venture capital fund helping to transform the food sector in Latin America via investments in tech-based startups. 

The Yield Lab global network of VC firms that have been operating since 2014 from its headquarters in St. Louis, Missouri, with regional operations in North America, Europe, Latin America, and Asia-Pacific. Founded in 2017, The Yield Lab Latam has offices in Argentina, Chile, Brazil, and Mexico operating as part of this global network. 

As the agrifood tech venture capital firm with the largest presence across Latin America, The Yield Lab Latam invests in high-potential startups addressing the varied challenges being faced by the agri-food industry. 

Through the action of connecting startups with investors, corporates, farmers, the public sector, and research organizations, the work being done by The Yield Lab is promoting the sustainable evolution of the industry. This work is being supported by Nestlé through an investment from one of its own funds that focuses its capital investments in two key areas: promoting packaging solutions and recycling infrastructure that contribute to circular economies; and helping the food sector transition to regenerative agriculture.

“The investment from Nestlé and the partnership with The Yield Lab Latam will help us progress on finding sustainable solutions for the food industry,” said Maxence de Royer, vice president of strategy, business development & ESG, Nestlé Latin America Region. 

“Investing in technological innovation in the agri-food sector and drawing on the energy and creativity of startups can help meet common goals such as reducing emissions and increasing biodiversity. This complements our own research work in the area, for example through our new Institute of Agricultural Sciences.”

Nestlé has established a commitment to reducing its carbon footprint throughout its supply chains and operations. Playing a key role in the company’s goals to reduce emissions by 20 percent by 2025, 50 percent by 2030, and 100 percent by 2050, is regenerative agriculture.

In November 2022 the company announced its intention to strengthen its innovation development in Latin America through a new Research & Development (R&D) Center for Latin America located in Santiago, Chile that would leverage the company’s global science and technological capabilities. 

It was explained that the creation of the center was in line with the company’s geographical framework, which has included a new Zone Latin America since 2022. 

One area of particular focus in Latin America has been the implementation of regenerative practices in the dairy supply chain, where the company has already launched more than 80 projects across 11 countries. 

The company noted that these projects have significant potential to help reduce greenhouse gas emissions while supporting the communities in which they are active, as well as protecting, preserving, and restoring natural resources. 

“We are convinced about the great potential of Latin America, as a market but also as a source of inspiration in food innovation,” said Stefan Palzer, chief technology officer with Nestlé, in 2022.

“We want to innovate closer to consumers in the region, while leveraging our latest science and technology and local production sites. That’s why we have decided to set up an R&D center in Santiago, to work closely with Nestlé’s global R&D organization and the region’s leading universities and start-ups, to drive growth in Latin America, and beyond.”

“The relationship with Nestlé reflects the common vision of committing ourselves and the food production ecosystem to jointly help address the challenges of the industry,” said Santiago Murtagh, managing director, The Yield Lab Latam.  

“We are leveraging our proximity to local entrepreneurial talent and the reach of our network of innovation centers. From this local position and the regional experience of having invested in seven Latin American countries, we can act as a bridge between investors in the food industry and innovative solutions for the sustainable production of healthy, nutritious, safe and accessible food for the next generations.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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