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Consumers who are more informed than ever before are changing the way food manufacturers approach innovation.
With shopper preferences changing rapidly and inflation rapidly reducing the amount shoppers spend, innovation has become one of the key means by which food companies drive growth. The new launch reflects the company’s recognition that a single product no longer fits every consumer or dining situation.
Pringles manufacturer Kellanova On December 11, it became part of candy and snack manufacturer Mars.has paid attention to consumer trends like protein, and its recent innovations have led to its highest annual sales growth in years. We’re also using tools like artificial intelligence to support everything from product development to data analytics.
Food Dive recently sat down with Nico Amaya, President of North America at Kellanova, to discuss product development in the food sector, how it has evolved, and why innovation is more important than ever.
This interview, conducted before the Mars merger was completed, has been edited for brevity and clarity.
Food Dive: Discuss the importance of innovation in food today.
Amaya Nico: Innovation in the food and beverage sector has always been important. Now, based on our insights and research, we know that consumers are now more informed. They have different needs. They want something more tailored to their needs, and as a company we always stay very close to that insight to serve that consumer and provide solutions.
We actually have more information that can provide those solutions. And since COVID-19, we, like our industry and everyone else, have been limited by a number of factors. Now that we’re out of that situation, our supply chain is stable, innovation has really increased across all categories, and certainly we’re driving innovation and really driving growth as a company.
Will falling consumer spending affect innovation?
Amaya: We are seeing a contraction in consumer spending, and this is across the board in a variety of categories, beyond those in which we participate. There is certainly a lot of uncertainty going on right now. So the consumer is somewhat constrained and also follows a bit of a wait-and-see pattern.
Innovation actually drives growth. Why is that so? Of course, consumers want to make a difference with whatever money they have, and they want to ensure that their money is being put to good use and that they actually provide a solution.
Innovation is actually elevating the food category to highly satisfying items that consumers want to indulge themselves with. But the same is true on the better side, where we’re actually seeing significant growth across all categories. So this really helps drive some of the growth and minimize the impact that we’re seeing.
We’re currently driving innovation in our field, so we’re a big source of news. We continue to introduce new items that are more relevant to what consumers want. So we launched Eggo Protein, which has been doing fantastically well.
We’re really hitting consumers in terms of what they expected. We have an RXBar that we purchased a few years ago and are introducing a new format that contains much more protein. Additionally, key brands like Pop-Tarts are introducing protein Pop-Tarts which are really appealing to younger consumers looking for this type of product. So we’re increasing our offerings beyond what we’ve done in the past.
Kellanova is on track to record its highest level of innovation since the pandemic. Can you provide more insight on this?
Amaya: 2025 finished the year with innovation contribution to revenue roughly exceeding $250 million. This is fantastic. This is 40% more than the previous year. And by 2026, it will increase even further.
We’re investing more money in the process, not just at launch but also getting consumers to try the product and be aware of it. We are investing more in research and development. We’re investing more in ensuring that our assets can produce this, but we’re also investing more in ensuring that consumers recognize that we have innovation.
Artificial intelligence is becoming an increasingly larger part of the operations of many food companies. How is Kellanova using AI within its business?
Amaya: Data and analytics are at the center of everything we do and will do next. AI is really facilitating the mining and prediction of that information. We’ve been investing in how we look at data, how we organize it, how we combine it, but now we can apply AI to many of these elements to actually maximize the data and leverage it in real time.
Definitely, it’s a learning experience. That doesn’t mean we’ll be there until the end, but you’re definitely looking forward to it. How do you know about your consumers? Now we do it in a different way. How can I create a new product? Now we are starting to do things differently. How can I advertise creatively?
We are also applying AI, and if you look at our internal plans, we have been preparing plans for several years to provide data and analysis. Now we will begin to use AI in more effective ways so that we can adapt and leverage efficiencies. And of course, when you think about how we handle all the backend, the back office, we support that as well. So there are many applications.
Clearly, AI is changing the way we work and will continue to become more important in the future. So we’re definitely leaning into this area.
What AI helps us do is faster iterations… We can iterate quickly, concept, prototype, and test with consumers to get answers in a much faster way than before. So that’s something we can do faster, and also we don’t just have one concept. You can have 20. You can have 50 in real time and get answers that weren’t possible in the past. Agility is being applied and this is how we can predict something.
Considering your company and your career in the food business, I’m curious to see how innovation has changed and evolved.
Amaya: Early in my career, I made a lot of innovations, but consumers always thought it was the same. The reality is that consumers today are thinking about multiple (dots) all day long. “Okay, I’m going to get up and run, what do I need?” Then later he said, “Yes, I’m working and I need something convenient, and at the end of the day, I want to have fun.”
Consumers have many facets during the day, during the week, and throughout the year. But consumers have more information at this point. “I want to eat foods with fewer carbohydrates or foods with more protein.” So consumers are more aware of that. And what has changed over time is that we have to innovate for different audiences at different moments, beyond just thinking that one product will work for everyone.
It’s really about bringing something different and opening up the opportunity to appeal more to consumers in a different way than in the past. This used to be a one-size-fits-all solution, but we all know that’s not true. With all the data and information available now, you can better connect with your consumers and let them know what you have, as well as gain the many insights they provide.
