From the age of 18, Javier Larragoiti had a calling to change the sugar industry after his father was diagnosed with diabetes.
He says: ‘Until then, I didn’t realise how common the problem was and how it’s growing in the world.’
Now 29, his efforts have translated into a $310,000 (£240,148) reward after his business Xilinat won the Chivas Venture 2019 entrepreneurial competition.
Reacting to his win, Javier said: ‘This moment tastes pretty sweet.’
Javier Larragoiti, co-founder of Xilinat (right) pictured with Chivas Venture judge and actress Zoe Saldana of Avengers fame
He added: ‘I’m super happy to have been crowned winner of the Chivas Venture 2019.
‘With this funding we can go ten times bigger – and that means helping so many more people around the world.’
Through Xilinat, which he co-founded with Isabella Fernández and Alexis Heredia, Javier wants to transform the global sugar industry.
His product is made from 100 per cent xylitol and converts agricultural waste into this natural sugar substitute.
The product looks and is said to taste like normal sugar yet is low in calories, helping tackle obesity while providing a sustainable alternative for diabetics and the health-conscious.
It’s recommended for diabetics because it has a low glycaemic index and does not need insulin to be metabolised.
Xilinat claims its product is safe for children too and protects teeth against cavities.
Xylitol is nothing new – it has been produced since the 1950s in Finland where it is extracted from Birch trees.
However, the difference with Xilinat is that the founders have found a cheaper and healthier way to create it by fermenting corn residue instead.
Of the xylitol products on the market currently, Javier says there can be digestive side-effects: ‘There have been some studies that all these high density sweeteners do affect your gut which affects everything from your mental state to your metabolism.
‘Other studies show they are carcinogenic, but they don’t’ have statistical validity.’
Will Xilinat replace all sugars and sweeteners? The founders claim the product is far healthier and that it will be cheaper as it’s produced from corn as opposed to using birch bark
The Xilinat product is currently available only in Mexico and can be bought on the company’s website for 200 pesos (just over £8) for one pound (454g) bag.
Javier told This is Money that his Chivas Venture winnings will help the business to expand.
‘We are still doing things on a lab scale and we are only able to produce one ton per year but want to produce ten tons per year in the next three years.’
Plans are afoot to launch the product within three years in the United States and Canada and to bring it to Mexicans nationally next year.
In five years he wants to expand internationally but British consumers may not have to wait that long, as he’d ideally like to launch the product here sooner.
Javier says his two-year stay in the UK, where he did his masters and worked in restaurants, has left him with a few friends asking for the products for their restaurants.
Xilinat is a versatile product that can be used as an ingredient in chocolate, for baking and in hot and cold drinks.
Javier says: ‘It tastes just like sugar and as it has the same taste there’s no need to change the recipe.’
But there’s unfortunately one downside – the ingredients of the sugar substitute don’t make it soluble enough to use in carbonated and alcoholic drinks.
But there are more advantages to using the product.
Besides tackling the global diabetes epidemic, his business is also helping the environment by reducing waste.
Every year, millions of tons of agricultural wastes are incinerated by small scale farmers which release CO2 into the atmosphere.
In Mexico, where his business is based, this practice creates 40 per cent of the CO2 generated in the country.
To reduce CO2 emissions, Xilinat purchases and collects agricultural waste from small scale farmers and transforms it into a natural sweetener.
Javier Larragoiti, co-founder and CEO of Xilinat pictured in the centre at the Chivas event with his award
It’s a win-win as farmers are able to generate an income from Xilinat. The purchase of the waste prevents burning and helps the environment, along with human exposure to the associated harmful pollutants.
Since winning the competition Javier says he’s received over 500 emails in just 24 hours. ‘It’s from different people who want to buy the products, media, some investors, universities who want to reach out and see if we can work together as they have the facilities and for those who want to learn about the process.
‘I haven’t even had a chance to go through all the messages I have received.’
While the last pitches were conducted in just a few minutes Javier says that the process to get to the Chivas Venture final takes much longer.
Xilinat is also helping the environment by reducing waste. Every year, millions of tons of agricultural wastes are incinerated by small scale farmers which release CO2 into the atmosphere.
He explains: ‘We started in early January and submitted an online application to the competition. If you are successful you pitch and then if you win you get a chance to represent your country.
‘That finishes in February and in March you get in contact with the call centre and they ask for information to validate that you are a useful start up and can increase your footprint and the money will help with your project.
‘We had to show our patent papers and our sales and how we manage waiting list of clients. Legitimate and scalable – that’s a huge thing [the judges] they are looking for.
‘In April we went on an acceleration programme to network and pitch. This happens over a week in The Conduit, a social club for entrepreneurs in London in Mayfair.
‘Then after that it was the global event in Amsterdam – it’s a tournament-like set up.’
To be a successful entrepreneur, Javier believes you only need to get two basic things set up correctly. ‘You need a great team that will help you solve all the problems and a great network.
‘Then the funding and clients will come by themselves. I’ve seen good project ideas unwind because they don’t have the right team to make it through.’
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.