Kerry VP: How AI is reshaping F&B innovation cycles to boost product development

Food innovation in emerging F&B companies is fraught with challenges like high minimum order quantities (MOQs) and lengthy lead times, which can slow down product development and increase time-to-market. Kerry is targeting these issues with its AI tool “KerryKalaido” which leverages a blend of product, consumer, and ingredient trends to speed up product ideation and realization.

The tool comes amid a rise of AI in food innovation which is helping food companies track market trends, predict claims, and formulate novel flavor profiles to complement human expertise. With regulations like the EU AI Act, the government is also supporting the integration of AI in food development through a combination of regulatory frameworks and strategic investment.

Kerry unveiled the product concepting tool at its recently renovated co-creation hub in California, US, to help companies “short-circuit traditional concept ideation” and development sessions.

Food Ingredients First speaks with Will Kelly, North America vice president of Beverage Taste at Kerry, to understand how AI is shaping companies’ NPD strategies and shortening product innovation cycles to build confidence, and enhance collaboration around launches.

How is AI reshaping F&B product development, and what excites you most about its potential in this space?

Kelly: At Kerry, we’re observing a strong appetite from our customer base and the industry more broadly to engage with and leverage AI as part of product development. AI brings real value in its ability to take and distill extensive data sources, trends, and insights in a targeted development cycle, joining dots and predicting successful product launches in a timeframe that is reducing what historically took weeks and months to now hours and days.  

Employing AI in product development is already having a major impact on the industry — it’s been overwhelmingly positive to date in terms of building collaboration and confidence levels around product launches and we see a lot more runway for its impact as the technology matures. It is a smarter, more sustainable way to help our customers, no matter their size, tackle some of the challenges they face in the global food system. 

AI helps join the dots and predict successful product launches while reducing timeframes to hours and days, says Kelly.

Tell us about KerryKalaido — how can it help manufacturers? 

Kelly: Kerry’s Kalaido platform is a multi-dimensional product ideation and concepting tool that allows users to generate, formulate and visualize product prototypes based on prevailing product and consumer and ingredient trends, consumer dynamics, demographics, and segments. 

The tool allows formulators to tailor products based on a range of parameters that can be refined and enhanced in real time during a co-creation session. It is ideal for a brand looking to create a beverage for a GLP-1 user with specific needs, such as additional fiber and protein. 

Another example would be an Asian-inspired tea concept that resonates with a North American Gen Z consumer looking for a “storied and healthier” beverage. In each case, the tool uses AI generation to visualize all aspects of a product, including formulation, packaging format, branding, visuals, and the hero ingredients. 

What types of proprietary data does KerryKalaido utilize, and what benefits does it provide in concept ideation? 

Kelly: KerryKalaido uses a mixture of primary and secondary data sources both internal and external to Kerry. Kerry has built up valuable databases internally over the last 20 years in terms of what works and what doesn’t work at a product and segment level, the types of taste profiles that have worked and don’t work, and the types of formulations that resonate for customers and consumers alike.  

Coupled with external data sources such as market launch analysis, consumer insights, and trends, we are equipping our AI platform with a rich source of data points to analyze and extrapolate market-winning products.  

How does KerryKalaido cater to the specific needs of emerging F&B companies, particularly those facing challenges? 

Kelly: All companies, whether small or large, are focused on launching the best products within their specific markets. We see KerryKalaido performing similar roles regardless of customer size and evolution. Specifically for companies in the emerging space, KerryKalaido offers a level of experimentation and rapid development that often aligns with their ethos. It is designed to propose products we know we can execute seamlessly and practically, which includes aspects such as MOQs and lead time alignment, regulatory requirements, and more.  

KerryKalaido can help manufacture beverages for consumers with specific needs, such as additional fiber and protein. 

How does KerryKalaido adapt to evolving consumer trends and F&B industry preferences?

Kelly: Like other forms of AI, KerryKalaido is continuously learning and building on its output in an iterative way. The power of the tool is to spot trends where others are not seeing them or to spot them earlier so we can move on them from a product development perspective. Over time, there is potential that it could start influencing consumer trends itself as it draws on such a rich data source and channels it directly into the decision makers and formulators of companies launching market products.

How does Kerry ensure data security and confidentiality for clients using KerryKalaido?

Kelly: Each customer’s KerryKalaido experience is tailored uniquely to them. The tool does not formulate with or have access to Kerry ingredients that are proprietary or exclusive to specific customers.  

We have seen first-hand the value our customers place on KerryKalaido and how it can help to short-circuit product development and, more importantly, drive better conversations between our customers, teams, and functions. Since the tool launched, we have multiple examples of customers taking KerryKalaido output and driving launch activity, often with a final tweak that makes it a product truly reflective of our customers’ unique brands and DNA. 

How do you see the role of AI evolving in the industry over the next five to ten years, and what role will Kerry play in shaping that future? 

Kelly: Today, we are seeing just a glimpse of what is possible with AI in the industry. With further adoption and development, we expect to see much broader usage of AI tools in product development. At Kerry, we are committed to shaping the future of sustainable nutrition. Through our people and science-backed innovation, like AI tools, we create vital impact. We have invested early and significantly in AI and are well placed to lead the conversation when it comes to AI-driven F&B development.