Startup brings US model to Chile to sell food at factory gate prices

RIO DE JANEIRO, BRAZIL – “Savings community” is the term 12tren uses to self-define itself on its website. The Chilean startup, which began operations in 2020, aims to replicate the US wholesale model used by brands such as Costco and Sam’s Club in Chile.

This model consists of customers paying a membership fee -in this case, CLP 100,000 (US$3.20) per year- with which they can access the products of different brands at factory prices, which are delivered to their homes by the startup. Unlike wholesale supermarkets in the US, 12tren does not have physical stores.

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Jorge Gordillo, one of the startup founders together with Sebastián Deutsch, says that families can buy food at a 45% savings compared to supermarkets. With the products currently available on the platform, 85% of an average family shopping basket can be assembled.

Among the brands that have partnered with 12tren are Agrosuper, Nestlé, Sadia -a Brazilian chicken producer- La Crianza, and PF.

“The process has been fascinating because the segment of wholesale customers paying membership does not exist in Chile. Chilean wholesalers do not charge membership fees and are oriented to the grocer. We are targeting families, who are very cost and price-conscious,” says Gordillo.

He adds that one of their objectives is to increase social capital, as families can come together and “aggregate demand in a rational, organized and planned way to make more conscious purchases than what is done in the supermarket or delivery apps.”

They are currently finalists in Tecla 5, Caja Los Andes’ social entrepreneurship contest, and are in an acceleration process with 3IE, the incubator of the Universidad Federico Santa María. They have also obtained a Semilla Expande fund from Corfo.

NEW COLLECTIVE MEMBERSHIP MODEL

Since the last quarter of 2021, the entrepreneurs have been testing a new business model to sell the products. They offer companies the possibility of accessing collective memberships to deliver benefits to their workers.

Gordillo explains that this can be done in two ways. One is for companies to contract 12tren for all their employees for an agreed price. The other is for companies to operate as collectors and deduct from their payroll at a discounted price – the workers who want the benefit.

The startup’s founder adds that for them, “inflation is an extra boost because it directly affects your supermarket purchases and what you used to fill your cart with is no longer enough”.

In his future plans, Gordillo identifies Mexico as one of the countries they want to reach, and then the US, because he believes that “we can be the best competitor for Costco or Sam’s Club”.

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