Hormel Foods Turns Up the Heat With AI-Driven Flavor Innovation
Hormel Foods is cranking up the intensity of its flavors, and behind the spicy kick is product development fueled by data and artificial intelligence.
Experimentation with ingredients such as ghost peppers and Calabrian chiles requires more than just gut feeling. The company is using big data and social listening to identify the latest in food trends, Lisa Selk, SVP of Hormel’s center of excellence, Brand Fuel, tells CGT.
As the leader of Hormel's hub for innovation, consumer and shopper insights, brand diagnostics, and technology, Selk finds that social listening is a great way to understand changes in consumer behavior. "And now with the AI-driven analytic capabilities most platforms have, identifying emerging trends has become even more efficient."
The company also looks to a dedicated cultural anthropologist who conducts research related to online or in-store shopping, as well as in-home consumption habits, to keep a pulse on changing trends. It then brings together these insights with its proprietary business data to gain a 360-view of consumer behavior.
“Consumer food preferences often change alongside their values and practical needs,” says Selk. “Staying close to those insights helps us respond in meaningful ways.”
Artificial Intelligence Helps To Scale Efforts
Hormel’s product development process used to be reliant on manual, human efforts, according to Selk, but by overlaying AI, the company now integrates machine learning to speed up timelines considerably, with the added benefits of lowered costs and improved communications with customers.
“AI is a great tool for eliminating repetitive tasks and for organizing large datasets,” says Selk.
What often bogs down CPG companies is not insufficient data, but rather having usable data. Selk says teams at Hormel often use AI to help gather information at scale and translate big data into more manageable insight bites.
While the tech provides a speed and efficiency boost, it’s a strategy that requires human-centered vigilance.
“We have a strong team of data experts who analyze our AI tools’ outputs and always have a human touch that ensures accuracy and removes any erroneous hallucinations that AI systems sometimes output,” she emphasizes.
Going Beyond Efficiency
While the productivity benefits are significant, it’s personalization that keeps the company relevant in the consumer landscape. For this reason, Hormel leans on data that helps tailor snacks and meals for its audience, integrating recipe inspiration and serving suggestions through digital content.
In order to resonate, these interactions must be meaningful, aligning with individual consumer preferences and reflecting unique lifestyles, she says.
Also: Hormel's new IBP will centralize and optimize supply chain operations
To ensure it gets it right, Hormel has a Culinary Collective of chefs through which it can test early R&D prototypes. These members stay in tune with trending flavors and cooking methods across the industry. The company also engages with chefs and other experts through its foodservice division.
“Since foodservice operations at restaurants or in hospital/university kitchens occur at scale, these partners often gain valuable insights from the large sets of consumers,” says Selk.
Using this multi-pronged approach of data and market feedback, the company has been able to successfully jump on several trends, including an ongoing viral hot honey event that originated in Brazil but quickly gained traction in New York City pizza chains. This led to the company partnering with Mike’s Hot Honey brand in 2023, create engaging recipe content that highlighted creative ways to pair the product with Hormel's pepperoni. Earlier this year, the company also introduced Fontanini Hot Honey Sliced Sausage.
