From South America to the United States: Guayakí and the Transformation of Yerba Mate

Julia Sarreal

Enterprise & Society, 2024, vol. 25, issue 4, 1295-1320

Abstract: In the early 2000s, California-based Guayakí popularized the caffeinated drink, yerba mate, among young people and creative types. With revenues of $100 million, Guayakí dominates the U.S. market where it is synonymous with yerba mate. This essay explores how Guayakí transformed a foreign product with deep local meaning, widespread popularity, and a long history in southern South America from a shared beverage and social practice into a healthy energy drink. Typically, localization entails multinational companies and local consumers adapting and giving new meanings to an exotic foreign product or brand. In contrast, local entrepreneurs radically changed yerba mate while preserving part of its narrative. Guayakí promotes product authenticity based on a narrative of South American Indigenous origins, stimulating qualities, and health benefits that fits with superfoods, while a narrative of green capitalism promotes brand authenticity. But that was not enough to popularize yerba mate. The product had to be adapted to consumer taste preferences and values that challenge the foundational ideas of superfoods and green capitalism. As a result of consumer input acquired through grassroots marketing, Guayakí transformed a shared infusion into something closer to a soft drink—a pre-prepared, individual-sized beverage served in a single-use bottle or can with flavoring and sugar levels tailored to U.S. consumers. The essay exposes the role of local entrepreneurs and consumers in shaping product development and localization. It complicates our understanding of product authenticity and brand authenticity while exposing the limitations of green capitalism, ethical consumerism, and activist entrepreneurship.

Date: 2024
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