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The Spoon

Daily news and analysis about the food tech revolution

Ai Palette

AI-Powered CPG Trend Forecaster AI Palette Gets Gobbled Up

AI Palette, a company that uses AI to help CPG brands anticipate consumer tastes ahead of market trends and better predict new product success throughout their lifecycle, announced today it was acquired by market research company GlobalData.

AI Palette launched within the last decade alongside a cohort of startups—including Analytical Flavor Systems, Tastewise, and Spoonshot—that began utilizing machine learning and big data analysis tools. These tools enabled CPG brands to move away from traditional product ideation and surveys, uncovering hidden insights more rapidly through AI. Like many similar startups, AI Palette started talking up their generative AI bona fides over the past couple of years.

“The integration of AI Palette supercharges our ability to help CPG brands innovate smarter and faster,” said Mike Danson, CEO of GlobalData Plc. “Together, we are setting a new standard for AI-driven intelligence in the consumer space.”

In some ways, this deal resembles Spoonshot’s acquisition a little over a year ago, when legacy market intelligence provider Target Research Group acquired the AI startup. GlobalData Plc, which places greater emphasis on pure data analytics than Target, is a company that has grown primarily through acquisition. From what I can see, AI Palette represents GlobalData’s first pure-play AI company deal.

With most major food-brand CTOs currently exploring—or being directed—to leverage AI, it seems likely that acquisitions of vertically specialized platforms will continue over the next 12-24 months. Consultancies and market intelligence providers will probably lead this trend as incorporating AI into intelligence toolsets becomes essential to maintaining relevance..

Ai Palette Raises $4.4M USD for Trend-Predicting Tech

Singapore-based Ai Palette announced today that it has raised $4.4 million USD in an oversubscribed Series A round. The round was co-led by Exfinity Venture Partners and pi Ventures, with participation from Anthill Ventures and return investors VC AgFunder and Decacorn Capital. This brings the company’s total funding to $5.5 million USD.

Ai Palette uses machine learning and artificial intelligence to help CPG and food companies predict consumer trends as they emerge. The company’s first product is called Foresight Engine, which can track a trend’s future trajectory, consumers driving it, and its maturity. The machine learning platform recognizes 15 different languages and can process data from various sources including images.

It is estimated that approximately 10,000 new CPG products are released each year, and within two years, 85 percent of these products will fail. Staying ahead of trends can help companies differentiate from competitors, directly target consumer preferences, and time product launches.

The use of AI and machine learning can help identify trends early, and speed up the R&D process. In turn, this can help food companies bring their product to market faster. Besides Ai Palette, several other companies offer trend-predicting services including Tastewise, Spoonshot, Halla, and Analytical Flavor Systems.

Besides emerging trends, these services can additionally predict taste preferences in different regions of the world. For example, Ai Palette analyzed 1.2 billion data points to track beverage trends in the U.S., Canada, India, and Southeast Asia during the summertime. It was found that in the U.S., the use of acerola cherry in juice drinks has experienced a year-over-year growth rate of 254 percent.

Ai Palette will use its new capital to expand its customer base outside of Asia, recruit new data science and engineering talent, and develop new product lines.

Ai Palette Raises $1.1M in Seed Funding for its Food Trend Prediction Platform

Ai Palette, a Singapore-based startup that uses machine learning and artificial intelligence to predict trends for food companies, announced it has raised $1.45 million Singapore dollars (~$1.1M USD) in seed funding. The blog e27 reported the news first, writing that the funding round was led by Decacorn Capital with participation from the Singapore government’s SGInnovate and AgFunder as well as existing investor Entrepreneur First.

According to Ai Palette’s website, the company uses “Artificial Intelligence and Machine Learning to draw insights from millions of data points to identify consumer needs in real time and combine it with the brand personality to create winning food product concepts.”

Using machine learning and AI to help food and CPG companies capitalize on emerging trends is an already crowded field. Companies like Spoonshot, Analytical Flavor Systems, Tastewise and Halla all use various implementations of machine learning and AI in this capacity.

The goal for all of these companies is to speed up the R&D process for food producers. The sooner a food trend can be spotted, the faster the process can be to get it to market. Additionally, AI allows companies to suck up even more data to provide more granular predictions based on things like regional preferences, or even come up with new flavor combinations that might not ordinarily be tried.

Ai Palette says it will use its new funding to scale up development and grow out its customer base across multiple markets.