Artificial Intelligence set to transform beverage industry | Beverage ...
Based on the nonfiction book Moneyball: The Art of Winning an Unfair Game, the 2011 film “Moneyball” is an account of the Oakland Athletics baseball team’s 2002 season and General Manager Billy Beane’s successful attempt at assembling a team on a lean budget by employing computer-generated analysis to acquire new players. Although the Athletics fare poorly early on in the season, ultimately, the team wins an unprecedented 20 consecutive games, setting the American League record.
Today, with the proliferation of artificial intelligence (AI) that enables computers and machines to simulate human intelligence and problem-solving capabilities, experts note that in recent years the technology has become a significant force across various sectors.
Generative AI Driving Value Creation
“In particular, generative AI, the type of AI designed to create new content, has been a topic of widespread discussion over the past two years,” says Thor Olof Philogène, CEO and co-founder of Stravito, Stockholm, Sweden. “Unlike traditional AI systems, which are typically programmed to perform specific tasks based on predefined rules or data, generative AI models are trained on large datasets and learn to generate new content by understanding patterns and relationships within the data.
“The thing about generative AI applications is that everybody wants magic,” he continues. “You see the technology, you let your mind wander, and suddenly it can do everything. But if we take a sober look at it, there are two main streams of value creation — efficiency and productivity.”
Transforming the Beverage Industry Through AI
Currently, with its capability to uncover valuable consumer insights, experts highlight the role AI technology plays within the beverage industry.
“With its heavy reliance on qualitative data, the beverage industry is in a unique position to expedite consumer-centricity and impactful decision-making across the organization through the enhanced access to insights offered by new generative AI solutions,” Stravito’s Philogène says. “From the perspective of consumer insight, democratized access to consumer insights within the organization is crucial, and can be catalyzed by the capabilities of generative AI tools.
“By reducing the time spent on manual research, generative AI opens up operational bandwidth for deeper analysis, implementation and action,” he continues. “This is particularly vital for beverage brands seeking to remain at the forefront of trends and intimately connected with their consumers.”
Driving Innovation and Optimization in the Industry
Aionic’s Benjamin explains how AI can guide decision-making and drive innovation in the industry by analyzing factors such as purchasing habits, social media interactions, and demographic information.
“In today’s digitally dominated landscape, consumers aren’t just after products — they crave personalized experiences that resonate with their distinct tastes and preferences,” he says. “By analyzing vast amounts of data from social media, online reviews and purchasing patterns, AI algorithms can identify emerging flavor profiles, ingredient combinations, and consumption habits that appeal to specific demographics. By leveraging AI algorithms on vast amounts of datasets, beverage-makers can identify trends, patterns, and consumer behavior in a way that was previously not possible.”
AI Applications in New Product Development and Supply Chain Optimization
Black Swan’s Pearmine points to how AI is being used in new product development (NPD) — from start to finish.
“In Venture Beat’s article, Stephan Gans, chief consumer insights and analytics officer at PepsiCo explained how AI is being applied across the end-to-end NPD process,” he says. “It’s used in the manufacturing of a new product, helping to significantly improve efficiencies and reduce water consumption.
“Sales and marketing teams are also using AI to create personalized digital and in-store ads,” Pearmine continues. “All branded materials and campaign assets are being quality control checked by an AI-powered tool. It’s quickly becoming a key feature of every step of the new product journey — from ideation to consumption.”
