Mondelez International
What Happened: The AI tool, created in collaboration with software consulting firm Fourkind, now part of Thoughtworks, has been operational since 2019, reported the Wall Street Journal.
It aids Mondelez's R&D team by generating recipes based on desired traits like flavor, aroma, and appearance. The tool also evaluates ingredient costs, environmental impact, and nutritional value.
The AI leverages this data to propose new formulations-a process that once relied on trial and error. Mondelez reports that AI-driven development although subjected to human taste-testing, has accelerated product testing and production trials by four to five times.
"The point is we get there faster," stated Kevin Wallenstein, section manager at Mondelez. "The consumer wants the product to taste like X. We're not stopping iterating until it tastes like X ... we're doing things more efficiently."
The tool has been used in over 70 projects, resulting in new products such as the Gluten-Free Golden Oreo and revamped classic recipes.
In addition to Oreos and Chips Ahoy, Mondelez produces popular snacks like Ritz crackers, Cadbury chocolates, Clif bars, Triscuits, Tate's cookies, and Toblerone.
According to the report, Mondelez carefully limits how far its AI can push innovation. Earlier, less-refined versions of the tool, lacking sufficient data, made odd suggestions.
"Because [baking soda is] a very low-cost ingredient, it would try to just make cookies that were very high in baking soda, which doesn't taste good at all," said Wallenstein. This is why a brand steward plays an important role is to uphold each snack's core identity.
Mondelez did not immediately respond to Benzinga's request for comments.
Why It Matters: The integration of AI in food production is not without its challenges. For instance, Instacart's AI recipes in January this year went viral for their unusual and often unappetizing results.
Moreover, Mondelez is not just using AI for product development. The company is also leveraging AI for marketing via Google's
Earlier this month, the Oreo-maker also explored a merger with The Hershey Co.
Mondelez's organic sales increased by 5.4% in the latest quarter, accompanied by an 11.2% rise in adjusted gross profit dollars.
Price Action: According to Benzinga Pro, Mondelez shares declined by 0.24% to $61.34 on Tuesday, with an additional 0.42% drop in after-hours trading. Year-to-date, Mondelez has fallen by 16.93%.
