Key points:
- AI is being used in the alcoholic beverage industry for flavor innovation, climate resilience, and marketing strategies.
- Companies like Treasury Wine Estates use AI to plan for unpredictable weather patterns and improve irrigation methods.
- Tastry and Diageo use AI to predict flavor preferences and guide product development.
- AI is helping with sales optimization, store visit efficiency, and pricing strategies.
- The industry is exploring AI for creative processes while maintaining human involvement.
The alcoholic beverage industry is embracing artificial intelligence (AI) in surprisingly diverse ways, transforming everything from production processes to marketing strategies. As the sector faces challenges like declining global demand and changing consumer preferences, AI is emerging as a powerful tool for innovation and efficiency.
In the vineyards, AI is helping winemakers combat the effects of climate change. Treasury Wine Estates, for example, uses AI to model “what if” scenarios for extreme weather events, helping them plan more effectively for harvest seasons.
“AI is helping us be more resilient,” says Will Drayton, director of sustainability and science at Treasury Wine Estates. “So it doesn’t stop climate change, but helps us to be more resilient in the face of climate change.”
The technology also aids in predicting fermentation conditions and optimizing irrigation methods. Similarly, Sicilian winery Donnafugata employs AI to combat pest invasions and plan for adverse weather conditions, ultimately leading to more sustainable practices.
Flavor innovation is another area where AI is making significant inroads. Katerina Axelsson, CEO of tech startup Tastry, explains how their AI analyzes wine blends and runs simulations to determine the best possible chemistry that aligns with consumer preferences.
This approach reduces the risk associated with launching new labels and helps wineries create products that are more likely to succeed in the market.
Diageo, the liquor giant, has taken personalization a step further with its AI-powered “What’s Your Whiskey” platform. This tool uses a short quiz to match drinkers with spirits that suit their palate. Mark Sandys, Diageo’s chief innovation officer, notes that this data helps the company target its innovation more precisely and even inform which cocktails to serve in different locations.
In the beer sector, AI is being used to predict flavor and consumer preference. Belgian scientists have trained machine learning models to analyze chemical properties and consumer reviews, showing particular promise in predicting flavors for non-alcoholic beers.
Beyond product development, AI is revolutionizing sales and marketing strategies. Pernod Ricard uses AI to optimize store visits for its sales representatives, ensuring they focus on underperforming stores with the most potential for upselling. Brown-Forman employs AI to build elasticity models that predict how price changes or promotions would impact demand for their brands and competitor offerings.
However, industry leaders emphasize that while AI is a powerful tool, it’s not replacing human creativity and expertise. Natasha Curtin, global vice president of Bombay Sapphire, stresses the importance of blending art and science, using AI for data and insights while maintaining human skill and craft.
