Global chocolate giant Barry Callebaut has announced a strategic partnership with Chilean food-tech startup NotCo to integrate artificial intelligence into its chocolate development process. The collaboration aims to speed up innovation, improve nutritional profiles, and explore new functional ingredients at a time when volatile commodity prices are reshaping the industry.
Under the partnership, Barry Callebaut will merge its extensive ingredients database and manufacturing expertise with NotCo’s AI platform to create what it calls an “end-to-end AI innovation hub.” The goal is to fast-track recipe development and help the company respond more effectively to growing consumer demand for healthier, functional, and alternative chocolate products.
The move comes as cocoa prices continue to surge—now 30% higher than early 2024, according to Nielsen. Barry Callebaut executives recently warned that climate pressures will keep prices elevated in the long term, pushing chocolate makers to explore new technologies and formulations.
As a key supplier to major global food companies, Barry Callebaut faces mounting pressure to deliver innovative, cost-efficient reformulations. The company has already invested in cocoa-free chocolate, partnering with Planet A Foods to scale alternatives that reduce reliance on traditional cocoa supply chains.
The tie-up with NotCo is expected to accelerate product development and generate “breakthrough recipes,” especially in health-forward categories. “With the pace of change across the industry and the cocoa market, our customers’ needs are evolving rapidly,” said Barry Callebaut CEO Peter Feld. “This collaboration enables us to test how AI can enhance process efficiency and scale our innovation efforts to meet future demands.”
NotCo’s AI technology has already been adopted by major consumer brands. Unilever’s Magnum, soon to be spun off as a standalone ice cream business, announced in September that it would use the platform to quicken its pipeline. Kraft Heinz has also leveraged NotCo’s AI to develop a series of plant-based launches, including mayonnaise, cheese slices, Mac & Cheese, and Oscar Mayer hot dogs.