Mondelez International Harnesses AI for Snack Innovation: Oreos and Beyond

With Utter Self-Seriousness, Maker of Oreos Admits It's Using AI To Create New Flavors, Even Though Machines Cannot Taste

The company behind Oreo cookies has, by its own admission, been quietly creating new flavors using machine learning. As the Wall Street Journal reports, Mondelez -- the processed food behemoth that manufactures Oreos, Chips Ahoy, Clif Bars, and other popular snacks -- has developed a new AI tool to dream up new flavors for its brands. Used in more than 70 of the company's products, the company says the machine learning tool is different from generative AI tools like ChatGPT and more akin to the drug discovery algorithms used by pharmaceutical companies to find and test new medications rapidly. Thus far the tool, created with the help of the software consultant Fourkind, has created products like the "Gluten Free Golden Oreo" and updated Chips Ahoy's classic recipe, per the WSJ. Mondelez's research and development AI was, it seems, trained to optimize certain sensory factors. The tool was told to dial up scent characteristics like "burnt," "egg-flavored," and "oily," as well as flavor factors like "buttery," "in-mouth saltiness," and "vanilla intensity," among others. It's unclear how nuanced the AI's perception of these flavors really is, since machines lack taste buds or noses, though the company does employ human taste testers to check it all out -- and as "biscuit modeling" research and development manager Kevin Wallenstein indicated to the paper, Mondelez is very thorough with that aspect of its flavor creation process. "The number of tastings we have is not fun," the biscuit baron told the WSJ. "I used to work in Sour Patch Kids, and if you did a tasting every day for a week, it was a nightmare." Though the company didn't indicate how long it had been using the flavor discovery tool, it told the WSJ that the machine learning algorithm had been in development since 2019, a timeline that jibes with a 2023 interview in which Mondelez R&D exec Joe Manton teased the tool's existence to the magazine Just Food. As Manton suggested when speaking to the industry magazine, Mondelez's R&D team used historical recipe and ingredient data when creating the AI. In that same interview, he added that new flavors "go through a series of internal and external consumer testing" as well. In the more recent WSJ article about the tool, Wallenstein admitted that in its earlier days, the AI would offer unhinged suggestions. "Because [baking soda is] a very low-cost ingredient," he said, "it would try to just make cookies that were very high in baking soda, which doesn't taste good at all." By bringing in human "brand stewards" to oversee the process, Mondelez seems to have fine-tuned its machine-learning tool. Much like pharmaceutical drug discovery, it's an undeniably fascinating -- if not admittedly bizarre -- use of AI.

Oreo Maker Says It's Using AI to Create New Snacks

An AI system suggests snack recipes based on desired characteristics, like flavor and aroma. Every company seems to have an AI angle these days, even those in very analog businesses. Mondelez, the snack conglomerate that owns everything from Chips Ahoy to Clif bars, says it has been using a proprietary AI tool to quickly generate ideas for new snacks. The Wall Street Journal in a piece about Mondelez's AI explains the company began development of the tool back in 2019: Food scientists there use the AI tool to create optimal recipes by specifying desired characteristics, including flavor (“buttery,†“in-mouth saltiness,†or “vanilla intensity,†for instance), aroma (“oily,†“egg flavor,†“burnt,†among others) and appearance (“amount of chips,†“roundness,†“chip edges†are considerations). The tool also considers parameters like the cost of ingredients, their environmental impact and their nutritional profile. Nobody thinks eating rocks or putting glue on pizza is a good ideaâ€"Mondelez isn't using generative artificial intelligence here, but rather machine learning, a more traditional form of AI that isn't prone to hallucinating in the same way because it is optimizing outcomes rather than trying to create entirely new things. The same way Waze might use machine learning to optimize a route from A to B, Mondelez's tool is simply looking for the correct mix of ingredients to attain desired characteristics. It still had some problems in the early days, however: Earlier iterations of the tool that weren’t given as much data made some unhinged 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, the biscuit digital R&D section manager. Mondelez told the Journal that the AI is trained on the "essence" of different products, like Oreos, so that it doesn't stray too far from what consumers might expect. And recipes of course are still taste-tested. But Mondelez claims that whereas it previously developed new recipes through simple trial-and-error, having an AI come up with detailed recipes has allowed new products to reach production trials 4-5 times faster. Based on the investor frenzy for AI-related companies these days, we expect Mondelez's stock price to soar following this Journal article.

Oreo maker is using AI to develop new snack flavors

There's been no shortage of unique Oreo flavors in the past few years. The offerings seen on store shelves in recent months include toffee crunch, birthday cake, java chip, dirt cake, mint, Coca-Cola, and a pink-and-blue concoction called Space Dunk. But that's not stopping the owner of the beloved cookie brand and its many other snacks from incorporating artificial intelligence into the brainstorming process. Mondelēz International, which also owns Chips Ahoy, Ritz Crackers, Triscuits, Clif Bars, Cadbury chocolate, among other household-name snacks, is looking to AI to help it update its brands and offer new takes on flavors. Food scientists at the company are using AI tools to help them come up with new flavors, based on desired taste, aroma, or appearance profiles. Beyond suggesting recipe ideas, the AI also looks at the cost to manufacture the new product as well as the nutritional profile, environmental impact, and other aspects involved in creating the snack. That's a big step-up from the trial-and-error innovation method the company used to use, not only for figuring out flavor mixes, but also for getting them to production trials. The process is now two to five times faster, which can translate to between two and 10 weeks, depending on the complexity of the project.

Oreo Maker Uses AI To Come Up With Flavor Perfection: Mondelez Says, 'Not Stopping Iterating Until It Tastes Like X' - Mondelez International (NASDAQ:MDLZ)

Mondelez International MDLZ has been leveraging AI to speed up recipe development and improve flavor profiles. 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. See Also: Google Willow, Nvidia's China Troubles, Trump On AI, And More: This Week In Artificial Intelligence "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. Modelez did not immediately respond to Benzinga's request for comments. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. 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 Veo video generator. Earlier this month, the Oreo-maker also explored a merger with The Hershey Co., but the latter remains a tough acquisition target. 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%. Photo Courtesy: Achmad Agus Ilyas via Shutterstock Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Ahead Of Trump's Return To White House, US Approves $406M Grant For Taiwan's Chipmaker GlobalWafers Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs