How Kraft Heinz Utilizes Generative AI to Drive the Future of Food

Kraft Heinz, a global leader in the food and beverage industry, is leveraging generative AI to transform its operations and drive innovation across its supply chain, product development, and marketing efforts. The company’s ambitious AI initiatives are designed to enhance efficiency, improve decision-making, and create a more responsive and adaptive business model. This article delves into how Kraft Heinz is using generative AI, with detailed use cases, quotes from key figures, and insights into the company’s strategic direction.

Generative AI in Supply Chain Management

Kraft Heinz is building an internal generative AI application called KraftGPT, which aims to provide employees with quick insights into various aspects of the business, such as product sales and supply chain dynamics. Helen Davis, SVP and Head of North America Operations, describes KraftGPT as a tool that allows employees to ask questions like, “Why are we selling so much bacon?” and receive immediate, data-driven answers.

The company’s ultimate goal is to create a “self-driving” supply chain. This involves using generative AI to predict when production lines might fail and to analyze customer data for better forecasting. At the core of this system is a cognitive decision layer that acts as a digital twin of the supply chain, autonomously reacting to changes and making real-time adjustments.

“All that is happening very autonomously. That helps us — and this was a great learning from the pandemic — to really react to that consumer changing demand very, very autonomously [and] very quickly,” says Helen Davis. “It’s about getting 500 employees in an instant making those decisions.”

To support these efforts, Kraft Heinz has a dedicated team of about 50 data scientists working closely with IT and functional leads to feed transactional data into the company’s data lake. These data scientists operate in Agile pods, aligning with the company’s “Agile@Scale” strategy, which enables quick iterations and rapid deployment of AI solutions.

Generative AI in Product Development

Kraft Heinz is utilizing generative AI to enhance its product development processes. The company’s AI-driven approach helps create new products more efficiently and reformulate existing ones to meet changing consumer preferences.

Generative AI algorithms analyze a multitude of product attributes such as ingredients, packaging, and consumer preferences. By considering millions of possible combinations, AI can optimize these attributes for taste, texture, and appeal. This process not only accelerates innovation but also ensures that new products meet high consumer standards.

Kraft Heinz has developed KraftGPT, an internal generative AI tool that allows employees to query data and receive insights in real-time. This tool is designed to enhance productivity and decision-making by providing quick access to critical information.

“We’re currently in the development phase for the app, working through things like language translation tables for seamless communication with and understanding by the platform,” says Helen Davis. “We do already have an internal website platform that is up and running as well as user groups testing and training the platform.”

Generative AI in Marketing and Consumer Engagement

Kraft Heinz is also leveraging generative AI to optimize its marketing strategies and improve consumer engagement. By analyzing consumer data and generating insights, AI helps the company tailor its marketing efforts more effectively.

The sheer volume of content required for marketing campaigns can be overwhelming. Kraft Heinz uses generative AI to analyze and enhance the execution of its creative content, leading to more effective campaigns and better engagement.

Kraft Heinz has partnered with VidMob, an integrated platform that combines AI-powered creative analytics with a production workflow system. VidMob provides insights into various ad components, such as color palettes and talent appearances, helping Kraft Heinz optimize its ads for better performance.

“We got to the point of not being able to manually manage the scale of the creative production and measure the effectiveness,” says Matt Cosad, Head of Martech & AI at Kraft Heinz. “The analytics provides insights into elements from the product to the logo and placement of actors, color psychology, and sound.”

By analyzing creative content, Kraft Heinz reduced its cost per thousand impressions (CPMs) by 47% and increased view-through rates by 5% before a World Cup campaign. These improvements underscore the effectiveness of using generative AI to enhance marketing efforts.

Matt Cosad, Head of Martech & AI at Kraft Heinz

Generative AI in Data Analysis and Decision Making

Kraft Heinz’s generative AI initiatives extend beyond supply chain and marketing. The company is also using AI to enhance data analysis and decision-making processes across the organization.

Generative AI enables Kraft Heinz employees to access real-time insights from vast amounts of data, facilitating better decision-making and operational efficiency.

“Anytime you can make people more productive and solve problems right away without having to go get a data scientist or some type of tech person, it’s better for the organization as a whole because those experts can now focus on the next big thing,” says David McCurdy, Chief Enterprise Architect and CTO at Insight Enterprises.

Kraft Heinz data scientists are using Microsoft Azure OpenAI tools and internal data in conjunction with proprietary AI models, recommendation systems, and risk classification systems to generate valuable insights. The company is in the early stages of testing KraftGPT, with no definitive timeline for a full rollout.

Generative AI in Sustainability and Community Engagement

Kraft Heinz is committed to using generative AI to promote sustainability and engage with the community. The company’s AI initiatives aim to create a more efficient and sustainable supply chain, reduce waste, and improve resource management.

Generative AI helps Kraft Heinz optimize agricultural practices by analyzing soil health, weather patterns, and crop performance. These insights enable the company to make informed decisions that promote sustainability and improve yield.

“Generative AI and IoT technologies are transforming our approach to agriculture, making it more sustainable and efficient. This is a key component of our strategy,” says Helen Davis.

The famous Hector Osorno, who ensures that around 70% of the ketchup sold tastes the way it should.

Conclusion

Kraft Heinz’s strategic adoption of generative AI spans its entire value chain, driving innovation, efficiency, and sustainability. From creating a self-driving supply chain to enhancing product development and marketing efforts, generative AI is integral to Kraft Heinz’s operations. By leveraging AI responsibly and continuously exploring new applications, Kraft Heinz is well-positioned to maintain its leadership in the competitive food and beverage industry while contributing to a more sustainable future.

As Kraft Heinz continues to invest in generative AI and expand its capabilities, it sets a benchmark for how companies can harness the power of AI to drive business transformation. Through responsible AI practices, continuous innovation, and a focus on sustainability, Kraft Heinz aims to create lasting value for its consumers, employees, and the broader community.