Kellanova: Shifting From Pullback to Innovation With 5 Tech Priorities as the Backbone
2023 was a year of pullback, according to Kellanova’s recent call with investors. 2024? An entirely different story: the company has its eyes on tech to support a rush of product innovation.
Last year, the company, faced with building out a new identity following the Kellogg split — and during what was a very rocky economic period — was focused on supply, culling back SKUs to make sure products were available on shelf.
Steve Cahillane, the company’s president and CEO, shared with investors that going into the end of 2023 and now early 2024, things have shifted. “We’ve just got many more innovations than we’ve had in prior years, and that will roll throughout the year. We’ve also got distribution growing where it had been declining. So you should see momentum growing really starting now and picking up all through the year.”
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Supporting this renewed push, is a set of tech priorities being led by Kellanova SVP, chief digital and information officer Lesley Salmon, who shared details in a recent release from the company.
Among them is a focus on digitizing the supply chain, creating digital twins and replicas in manufacturing and tapping smart sensors and connected data to integrate real-time data into inventory-related decision-making.
In the same vein, data will also help inform product development. The company is investing further in proprietary consumer insights and analytics to dive deeper into the eating habits, consumption occasions, desires, and affinities of its consumers.
“That's where a lot of innovation is taking place,” said Salmon, who added that these data points will also help build highly personalized journeys with multiple touchpoints for consumers.
An example where this data might be useful is Kellanova’s recent string of sustainable packaging innovations, featuring reduced plastic for containers of Cheez-It, Snap’d, and Club Crisps, with the company stating it is looking to make its packaging more consumer-centric.
Artificial Intelligence and Machine Learning
It’s no surprise that Kellanova is also looking to invest in AI and machine learning, using data to optimize inventory management, demand forecasting, and production planning. With generative AI garnering buzz, the company is looking to leverage it for customer engagement via personalization tactics, but is approaching the tech with caution.
“We've established GenAI guardrails within our company, building solid foundations around data, ethics, and governance,” said Salmon. “Establishing these solid foundations up-front will allow us to fast-track progress as GenAI evolves.”
Data management and ethical considerations continue to be heavy hitters in industry conversations surrounding AI-powered innovation.
CGT’s League of Leaders — a cross-functional gathering of business and IT leaders in retail and consumer goods who meet quarterly to exchange ideas on a range of trends — warned us last year that what often bottlenecks progress is a lack of understanding in how to handle the data that comes with infrastructure updates.
Garter echoed similar sentiments in its research this past November, stating that data infrastructures must be secure, enriched, fair, and accurate, and AI values need to align with the company’s value.
E-Commerce and DTC
Lastly, Kellanova is focused on reshaping how its products reach consumers, using technology to form direct relationships based on personalized marketing strategies (some of which will tap AI as well).
It’s important to note that the company’s approach has significantly shifted in the last year. During last year’s Consumer Goods Sales & Marketing Summit, TJ Hanel, formerly director of omni e-commerce demand and platform lead for Kellogg, said the company was merging its shopper marketing and e-commerce functions in order to deliver more seamless consumer experiences.
Siloed efforts are out and collaboration is in, it seems — with the approach to tech innovation taking the same direction.
“We are using digital tools and building capabilities for greater collaboration across the Kellanova globe. We recently launched Microsoft Copilot for the Web to help creativity, enhance skills, and get things done faster in a safe and secure way,” said Salmon. “We are running 'Curiosity Sessions' across the world so colleagues can learn more about how to use these new tools, ask questions, and champion new technology.”
“Gone are the days when IT was simply charged with keeping an organization safe, secure, and up to date,” Salmon added.
