Japanese snack giant Calbee Inc. CBCFF is teaming up with Silicon Valley-based Pegasus Tech to incorporate AI into their snack production process.
What Happened: Calbee plans to invest in startups, particularly U.S. food tech companies, to help it achieve its goals to develop healthier snacks, streamline production, and innovate business models, reported Nikkei Asia.
Calbee is investigating how AI can enhance potato chip production and even generate new AI-driven potato chip recipes, says Anis Uzzaman, founder and CEO of Pegasus Tech.
“AI can help shorten the R&D process by simulating product testing and consumer preferences, rather than relying on lengthy in-person testing,” he stated.
Calbee also plans to use AI to develop more eco-friendly packaging materials. The company believes that partnering with Pegasus is a “better and faster” solution for achieving its tech goals than investing in startups on its own.
Through the investment, the startups will have access to Calbee’s extensive distribution channels and sales network in Japan and across Asia. Calbee is also looking to leverage the partnership to further open up the market in the U.S., the report noted.
“AI has already been implemented in various parts of our production, marketing and back-office transactions,” said a Calbee spokesperson.
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Why It Matters: The use of AI in the food industry has been on the rise, with companies like Yum Brands and McDonald’s exploring AI to boost operations and customer experience.
However, the technology is not without its challenges. For example, last month, McDonald’s had to end a drive-thru test that leveraged AI, after customers complained about the technology making it more difficult for them.
Meanwhile, Japan has made some serious headways in the AI market. Previously, Microsoft Corporation’s Japan president Miki Tsusaka spoke about the country’s rapid adoption of AI. She noted that this development could further boost its economy and technology sector.
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