Dive Brief:
- Barry Callebaut, one of the world's largest chocolate manufacturers, will use NotCo's artificial intelligence platform to create new recipes and unlock "the next generation of chocolate."
- The partnership will integrate Barry Callebaut's ingredients 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 speed up the innovation process to allow the chocolate maker to more effectively tap into health and wellness trends through new formulations and the exploration of functional ingredients.
Dive Insight:
Volatile cocoa prices and changing consumer preferences have more chocolate makers relying on technology to accelerate innovation and keep up with evolving trends.
Chocolate prices are 30% higher than in early 2024, according to Nielsen data. Barry Callebaut executives said earlier this month that climate challenges will continue to affect prices in the long run.
As a chocolate supplier to major food companies, Barry Callebaut faces additional challenges to provide clients with innovative reformulation options that can keep costs low. The company has invested more into chocolate alternatives, partnering with Planet A Foods to scale a cocoa-free chocolate.
The tie-up with NotCo aims to deliver faster innovations for its customers and deliver "breakthrough recipes," according to a release. Barry Callebaut said it's exploring health-forward formulations and functional ingredients.
"With the pace of change across the industry and the cocoa market, our customers’ needs are evolving rapidly," Peter Feld, CEO of Barry Callebaut, said in a statement. "This collaboration enables us to test how AI can enhance process efficiency and scale our innovation efforts to meet future demands."
NotCo AI’s platform has been used by other major CPGs.
Magnum Ice Cream, Unilever's ice cream business 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 roll out several plant-based products, including mayonnaise, sliced cheese, Mac & Cheese and Oscar Mayer hot dogs.
