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Diving overview:
- Barry Callebaut, one of the world’s largest chocolate manufacturers, will use NotCo’s artificial intelligence platform to create new recipes and introduce the “next generation of chocolate.”
- The partnership will integrate Barry Callebaut’s ingredient data and manufacturing capabilities with the Chilean startup’s platform to create an “end-to-end AI innovation hub.”
- Barry Callebaut said it aims to accelerate the innovation process so chocolate manufacturers can better capitalize on health and wellness trends through the exploration of new formulations and functional ingredients.
Dive Insights:
Volatile cocoa prices and changing consumer preferences are forcing chocolate manufacturers to rely on technology to accelerate innovation and keep up with evolving trends.
Chocolate prices are 30% higher than they were at the start of 2024, according to Nielsen data. Executive Barry Callebaut said earlier this month that climate issues will continue to impact prices in the long term.
As a chocolate supplier to a major food company, Barry Callebaut faces the additional challenge of providing customers with innovative reformulation options to keep costs low. The company has been investing more in chocolate alternatives, partnering with Planet A Foods to expand the scale of its cocoa-free chocolate.
The partnership with NotCo aims to provide customers with faster innovation and “groundbreaking recipes,” according to the release. Barry Callebaut said he is exploring formulations and functional ingredients that have health benefits.
“As the pace of change accelerates across the industry and the cocoa market, our customers’ needs are rapidly evolving,” Peter Feld, CEO of Barry Callebaut, said in a statement. “This collaboration will allow us to test how AI can improve process efficiency and scale innovation efforts to meet future demands.”
NotCo AI’s platform has also been used by other leading CPGs.
Magnum Ice Cream, Unilever’s ice cream division expected to be spun off next month, said in September it would use the startup’s platform to accelerate innovation. Kraft Heinz has also partnered with NotCo to launch several plant-based products, including mayonnaise, sliced cheese, Mac & Cheese, and Oscar Mayer hot dogs.
