TL;DR: Barry Callebaut has partnered with Chilean startup NotCo to deploy AI-powered recipe development, addressing record-high cocoa prices and weakening demand. The Giuseppe platform analyses thousands of ingredients to identify substitutions, joining a growing trend of food manufacturers using AI to optimise production costs.
AI Platform Tackles Rising Cocoa Costs
Switzerland’s Barry Callebaut, whose ingredients feature in one out of four chocolate and cocoa products consumed worldwide, will utilise NotCo’s Giuseppe AI platform as cocoa prices hover near record levels. Chocolate makers face pressure to reduce cocoa usage whilst maintaining product quality, compounded by the “Make America Healthy Again” movement led by US Health Secretary Robert F. Kennedy Jr, which brings additional reformulation cost pressures.
“This collaboration enables us to test how AI can enhance process efficiency and scale our innovation efforts,” said Barry Callebaut CEO Peter Feld. The company maintains commitment to traditional chocolate whilst exploring cocoa alternatives to boost supply chain resilience, according to global head of corporate communications Kai Hummel.
Giuseppe AI Identifies Ingredient Substitutions
NotCo’s Giuseppe platform scans products to identify and potentially replace specific ingredients. The system analyses a database of thousands of ingredients that could be artificially simulated, finding replacements that deliver similar characteristics to target ingredients. “This way a company can avoid the trial and error,” explained NotCo CEO and co-founder Matias Muchnick.
The platform enables manufacturers to optimise recipes systematically rather than through experimental iteration, accelerating development whilst managing costs.
Wider Industry AI Adoption Pattern
Barry Callebaut follows other major consumer goods firms in deploying NotCo’s technology. The platform is already used by Unilever’s Magnum brand—one of Barry Callebaut’s customers—as well as Kraft Heinz and Nutella manufacturer Ferrero.
The trend extends beyond recipe development. Oreo maker Mondelez reported last month it is using generative AI tools to cut marketing content production costs by 30% to 50%, illustrating the breadth of AI applications across food manufacturing.
Financial Impact Remains Uncertain
Barry Callebaut has not specified expected financial benefits from implementing the NotCo platform. “While we see strong potential, it’s too early to guarantee specific outcomes,” Hummel stated. The cautious approach reflects both the experimental nature of AI deployment in food manufacturing and the complexity of measuring impact across global operations.
The partnership represents a strategic response to structural challenges in chocolate production, combining cost management with supply chain resilience building. As raw material price volatility persists, AI-powered recipe optimisation offers manufacturers a systematic approach to maintaining product economics whilst navigating commodity market pressures.
Source: Reuters