Perspectives: How can NZ’s food producers take advantage of AI?

30th October 2023 By Contributor | contact@foodticker.co.nz | @foodtickernz

With AI producing results when it comes to NPD, think tank Te Puna Whakaaronui takes a look at what is happening globally and asks, ‘what should be happening in New Zealand?’

As well as being used for NPD, AI is being applied across the supply chain and in-market to finesse campaigns

Racing to be first to market with new products has led to some epic food fails: cinnamon flavoured fries and bacon flavoured soda are experiences best left to the imagination.

With an estimated 95% of new product ideas failing at the development stage there are efficiency gains to be made for the new product development sector (NPD). Artificial intelligence (AI) is already crunching the data and producing results.

Last month, UK supermarket Waitrose launched a new Japanese meal range informed by algorithms able to pick out and build on the trending yuzu and ponzu flavours.

Nestlé has used AI tools to rapidly analyse online publications and social media, launching Nescafé Dalgona coffee mixes and Nesvita plant probiotic supplements for the Chinese adult market.

The speed at which companies can now identify taste trends and bring a new product to market was highlighted by Kraft Heinz at the Generative AI Food Pioneers Summit in London last month.

Previously relying on Nielsen research for insights, they have partnered with insight company Tastewise, which feeds online content from the web and social media into a model that predicts trends and cuts down NPD failure rate.

Globally, brands including Calsberg, Coca-Cola, Nestlé and Danone are seeing a reported 73% increase in new product success rate in market.

In addition, AI is being used across the supply chain and in-market to finesse campaigns.

Heinz has self-reported an additional $30m of sales from the application of artificial intelligence to its supply chain visibility functions.

Tastewise’s chatbot, TasteGPT, launched earlier this year, answers questions such as: “what product ideas are the best fit for my Gen Z consumers?”, enabling nuanced in-country marketing of Kraft Heinz’s global brand.

Algorithms able to analyse huge amounts of consumer preference, market trend and nutritional information data can now support better flavour, ingredient and texture preference predictions.

AI can optimise food product formulas allowing companies to create healthier options without compromising on taste. In addition, individual preferences, dietary restrictions, and health conditions can be accommodated – a win for the consumer and company.

How can New Zealand’s food producers take advantage of the power of AI to predict market demand, future food forms and flavours, and the creation of new products?

Te Puna Whakaaronui Fit for a Better World is an independent think tank providing thought leadership, insights and strategic analysis on transforming New Zealand’s food and fibre sector.