How to Leverage AI for Accelerated Product Development in CPG

Every day, I witness how CPG companies grapple with adapting to ever-evolving consumer demands.

It’s a colossal challenge, contributing significantly to the high failure rate of CPG products – up to 85% according to Nielsen.

It can feel like a never-ending hamster wheel.

5 Key Challenges in CPG R&D

Here’s what I see as the top challenges in the industry:

1. Cost Pressures: Rising costs and stagnant budgets are ubiquitous. Budgets are tight and get squeezed daily.
2. Supply Chain Complexity: Diverse and fragmented supply chains face issues from weather events to global conflicts.
3. Changing Consumer Preferences: Quickly adapting to changing consumer preferences is tough. Social media drives change at a pace never experienced before.
4. Short Product Life Cycles: Rapid innovation is essential to keep pace with evolving trends and recoup development costs.
5. Duplicated Efforts: Lack of coordination among global R&D teams leads to redundant work and wasted resources, becoming a significant money sink.

AI’s Benefits in CPG Product Development

Here’s where AI can help. It’s not a silver bullet that will make all your problems disappear, but used correctly, it will accelerate and support your teams:

1. Faster Product Development: AI enhances data analysis, generating insights that help predict successful products.
2. Improved Product Quality: AI-driven analysis identifies optimal design, ingredients, and formulations.
3. Reduced R&D Costs: Generative AI enables rapid prototyping and cost-effective evaluations.
4. Enhanced Automation: AI automates quality-control testing, data collection, and decision-making processes.
5. Better Regulatory Compliance: AI tools like RegAsk analyze regulatory data, ensuring companies stay compliant.

AI Use Cases in CPG R&D

1. Personalized Products: AI leverages internal and external data to develop products tailored to individual preferences.
2. Market Research: Predictive analytics tools gauge consumer preferences, driving targeted R&D and marketing efforts.
3. Product Testing: AI automates extensive testing processes, identifying defects and suggesting improvements.
4. Organizational Knowledge: AI-powered directories capture and organize tacit knowledge, enhancing innovation and efficiency.

AI and Future Growth

CPG companies must integrate AI to stay competitive and accelerate R&D efforts. All the global brands are already heavily invested, and AI is rapidly becoming table stakes.

By leveraging AI, companies can streamline the entire product life cycle, from ideation to launch, ensuring they meet and exceed consumer expectations.

Our Ecosystem at 6 Seeds

We’ve created an ecosystem of services that work towards the same goal: helping our clients sell more food and make more money. This is how we do it:

1. Product Creation: We use data and AI to help our clients create products that sell and have a product-market fit. Currently, 82% of all newly launched CPG products fail within a year. We think this is unacceptable.
2. Marketing Communications: According to a recent Nielsen study, 70% of all marketing activations in CPG fail to return the budget invested. We use data and AI to craft marketing strategies that earn you money, not cost it. Our approach is highly focused, often personalized, and built on the data we observe.
3. Investment Readiness: We get our clients ready for investments by using data to prove that their business model will be profitable.

The difference this makes

This ecosystem ensures that our clients experience a far higher success rate than their competition. Here are some of our key performance metrics:

• 35% Faster: Get your products from idea to market in 35% of the time it takes you now.
• 43% Cheaper: Marketing and innovation budgets can be reduced by up to 43% while achieving better outcomes.
• 67% Stronger: Our clients perform 67% stronger than the industry average.

As AI technology continues to evolve, we will lead the way in integrating AI into every facet of R&D, resulting in more personalized, sustainable, and innovative products that cater to the ever-changing consumer landscape.

Novo Nordisk, makers of Ozempic and Wegovy is seeing growth of up to 27% in 2024 driven by soaring demand. Ozempic itself saw a 52% sales increase in 2024 while the obesity drug segment containing Wegovy grew by a staggering 154%.

As the use of weight loss medications like Ozempic becomes more prevalent, CPG companies are already stepping up to meet the unique nutritional needs of this growing segment.

Nestlé’s Vital Pursuit: Tailored for GLP-1 Users

Nestlé has launched Vital Pursuit, a brand designed specifically for those on GLP-1 drugs or managing their weight.

These frozen meals are high in protein, a good source of fiber, and packed with essential nutrients like vitamin A, potassium, calcium, and iron.

Recognizing that GLP-1 users often have a reduced appetite, Nestlé has adjusted portion sizes accordingly.

Abbott Laboratories’ Protality: Supporting Muscle Maintenance

Abbott Laboratories introduced Protality, a protein shake brand aimed at helping adults lose weight while maintaining muscle mass.

This product addresses the challenge of consuming enough protein and nutrients to support muscle function, which can be a concern for those on weight loss medications. Abbott is committed to developing more science-backed products and conducting research to meet the specific nutritional requirements of this group.

General Mills’ Super Mac: A Healthier Twist on a Classic

General Mills has revamped Annie’s Mac & Cheese with the introduction of “Super Mac,” a protein-packed version containing 15g of protein compared to the regular 9g.

In addition, they plan to offer lower sodium and sugar options in their Betty Crocker baked goods portfolio to cater to evolving weight management needs.

Common Themes

Across the board, these companies are focusing on products that are higher in protein, fiber, and essential micronutrients but lower in calories, sodium, and sugar.

Portion control remains a crucial consideration.

By investing in understanding the dietary patterns and nutritional needs of GLP-1 users, CPG companies are innovating and adapting.

Looking Forward

As the trend towards personalized nutrition continues, we can expect more targeted products from CPG companies.

The future will likely see even greater emphasis on portion-controlled, nutrient-dense foods that cater to specific health and wellness needs. This approach not only supports consumers’ weight management goals but also fosters long-term brand loyalty and trust.

Five ideas on how to profit from these developments

Personalized Nutrition Solutions

Develop AI-driven platforms or apps that provide personalized meal plans and product recommendations based on individual dietary needs, health goals, and preferences.

This can help consumers navigate their nutritional choices more effectively while on GLP-1 drugs.

Enhanced Nutrient Density

Focus on creating products that are not only high in protein and fiber but also rich in essential micronutrients like vitamins and minerals.

Consider fortifying products with nutrients commonly needed by GLP-1 users to ensure they meet their daily requirements despite reduced appetite.

Smaller, Convenient Portions

Offer smaller, single-serving packages that are convenient for on-the-go consumption.

These should be designed to meet the reduced appetite and portion control needs of consumers using weight loss medications.

Flavor Innovation

Innovate with bold and diverse flavors to keep meals and snacks exciting and enjoyable, even with reduced portion sizes. This can help maintain consumer interest and satisfaction.

Work with us

We have the data, the insight and the knowledge to help you understand and profit from the needs of the Ozempic consumer.

Somehow, somewhere, an 82% failure rate for CPG products has become normalized. We don’t think that’s acceptable, so we decided to build a system that makes success in CPG predictable.

The Nostalgic Secret Ingredient

Spam, the iconic canned meat, is making a comeback in the culinary world, and it’s not just for nostalgia’s sake.

From Spam musubi to Spam sliders, in 2024, chefs and food enthusiasts alike are rediscovering it.

Spam musubi is a Hawaiian staple, combining elements of Japanese sushi with Spam. The origin is a little murky, with some claiming that it was created by Barbara Funamura, a Japanese-American woman from Kauai, or during the Japanese internment camps during World War II. It’s simple to make and highly customizable.

Want to try? Here’s a recipe to get you started:

Ingredients:

• 1 can of Spam (12 oz)
• 5 cups of cooked sushi rice or short-grain rice
• 5 sheets of nori (seaweed wrap)
• 3 tablespoons of soy sauce
• 2 tablespoons of oyster sauce
• 1 tablespoon of sugar
• Furikake (Japanese rice seasoning, optional)
• 1 Musubi mold (or an empty Spam can, cleaned and with both ends removed)

Instructions:

Prepare the Rice: Cook the rice according to the package instructions. Sushi rice is preferred for its stickiness and ability to hold its shape. Once cooked, optionally season the rice with furikake for added flavor.

Cook the Spam: Open the Spam can, remove the Spam, and slice it into 8-10 even slices. In a skillet over medium heat, fry the Spam slices until they are slightly crispy on both sides. This usually takes about 2 minutes per side. In a small bowl, mix the soy sauce, oyster sauce, and sugar. Once the Spam slices are cooked, pour the mixture over them and continue cooking until the slices are well-coated and the sauce thickens. This caramelization process adds a rich flavor to the Spam.

Assemble the Musubi: Cut the nori sheets in half lengthwise. Place the musubi mold (or the empty Spam can) in the center of a strip of nori. Scoop a layer of rice into the mold, pressing it down to about 1/2 inch thick. If you’re using furikake, sprinkle a bit over the rice. Place a slice of the cooked Spam on top of the rice. Add another layer of rice on top of the Spam, pressing firmly. If using a mold, press the plunger down to compress the layers. If using a Spam can, use a spoon or similar object to press down and compact the layers.

Wrap the Nori: Remove the musubi from the mold and place it at the edge of the nori strip. Wrap the nori tightly around the rice and Spam, moistening the edge of the nori with a little water to seal it.

Serve: Cut the musubi into halves or thirds, depending on your preference. Serve immediately or wrap them individually for a portable snack or meal.
Customize your Spam Musubi with additional ingredients like avocado, scrambled egg, or pickled radish.