Artificial Intelligence in the Beverage Alcohol Industry

Artificial intelligence (AI) is changing the way many industries, including the beverage alcohol industry, operate. Let's take a closer look at the current uses of AI in the beverage industry and where AI solutions may be heading in the future.

Traditionally, Artificial Intelligence (AI) has been associated with science fiction movies and cyborgs taking over the Earth. In reality, AI isn’t a futuristic concept and it is actually changing the way many industries, including the beverage alcohol industry, operate. AI is here and already being used in our everyday lives. The next challenge is to find new ways to leverage the technology in a way that is better for both companies and consumers. That’s why we are going to take a closer look at the current uses of AI in the beverage industry and where AI solutions may be heading in the future.

What is Artificial Intelligence?

To begin with, let’s clarify exactly what AI is and isn’t. Basically, AI refers to a computer or robot that is able to perform in ways that we usually associate with humans. Using pre-programmed scripts, they are able to “make decisions” and respond to different situations without the need for human intervention. If that still sounds futuristic to you, consider that all major industries, including finance, healthcare, criminal justice, transportation, and national security are already taking advantage of AI.   

How Artificial Intelligence is Currently Being Used

In many ways, AI is being used to make life easier for the average individual in ways that you might not recognize. Just think about how you use automatic speech recognition (ASR) on your smartphone. If you have ever asked Siri a question, you have taken advantage of AI technology. Even just using the talk-to-text feature that transforms speech into written words is taking advantage of AI.

AI has also become a popular tool in customer service. Virtual assistants are often used to answer customer questions online. They can generate answers to frequently asked questions about common topics like shipping and returns. Messaging apps like Slack and Facebook Messenger are also utilizing virtual assistants. Companies can utilize this technology to reduce the workload on virtual and voice assistants and save money on labor costs. 

In addition, they can provide more personalized advice based on customer behavior and use data to cross-sell products or suggest certain sizes. These recommendation engines use AI algorithms to discover trends and make relevant suggestions, typically during the checkout process when customers may be more apt to impulse buy. 

The Benefits of Artificial Intelligence

In many cases, AI doesn’t just do the job of a human, it can do it better. For example, AI is able to hone in on better quality data faster while also eliminating mistakes that are simply part of human nature. In addition, AI is free from some of the biases that can affect research. For humans, collecting and analyzing data can be a time-consuming and labor-intensive process. AI can overcome all these prohibitive barriers and more fully leverage the power of data

Today, businesses have more access to data about customer behavior than ever before. AI can instantly harness all this information to understand emerging trends and customer preferences better. In a highly competitive business environment, this can be the key to staying on top. 

AI also allows you to streamline the research process. For example, you can create AI personas who share the same attributes as your target audience and use them to test out new ideas before they are on the market. This testing means that you can perfect products and hone concepts during the research phase. At the same time, your research and marketing team will have more time to focus on innovative projects and ideas that add value to the company and help you identify new trends. 

AI can also provide benefits when it comes to security and optimizing budgets. By eliminating the amount of interaction humans have with sensitive data, companies can protect privacy and add a layer of security. All of these benefits allow companies to get the most out of their budget and increase profits in both the short term and long term.

Artificial Intelligence and Machine Learning

Artificial Intelligence and machine learning are closely related. MIT defines machine learning as a subset of artificial intelligence. Essentially, AI uses machine learning, deep learning and other tools to help create “smart” machines that can solve problems. Machine learning focuses on finding ways for machines to learn through experiences and adapt accordingly. 

Artificial Intelligence and the Beverage Industry

Within the beverage industry, AI is being used in a variety of ways. Most commonly, AI is used to collect data and use AI algorithms to create new strategies for moving the company forward. Being able to predict sales, gain insights into customer behavior and preferences, better manage every stage of the supply chain, and create a more customized customer experience, inevitably leads to a more efficient and profitable beverage brand. 

Examples of AI in the Beverage Industry

Mackmyra Whisky

This Swedish distillery partnered with Microsoft and Fourkind, a Finnish tech company, to collect data that led to the first AI-generated whisky. They were able to work together to gather information on customer feedback and run it against Mackmyra’s recipes to generate thousands of new recipes. Next, Angela D’Orazio, a master blender, took a closer look at the recipes to decide which flavor combinations would blend well. 

Feedback from D’Orazio was then run through the algorithm again so that machine learning could begin to recognize what made a better recipe. The process was repeated until just five recipes remained. Ultimately, D’Orazio chose the winner and the whiskey moved on to the production stage.

Circumstance Distillery

Circumstance Distillery collaborated with Rewrote Digital and Tiny Giant to produce an AI-created Gin. The AI, dubbed Ginette, was programmed to analyze thousands of gin recipes and botanicals while also learning hundreds of gin names. Using this information, Ginette designed a new gin recipe along with the unique name “Monker’s Garkel.” Ginette also helped with copywriting and label design for the product and now runs the company’s Twitter account.

Carlsberg

In 2017, Carlsberg, a Copenhagen-based brewery, invested millions to launch its Beer Fingerprinting Project, which uses AI to analyze different brewing flavors. While other companies had launched similar projects using customer feedback, Carlsberg created a taste-sensing platform that can detect different flavor profiles.

Carlsberg is still using the program to create 1000 samples of beer on a daily basis. Cutting-edge sensors identify a flavor fingerprint for each sample. Next, different yeasts are analyzed so brewers can better understand subtle flavor distinctions. Eventually, this AI technology could produce new kinds of beers. 

The Future of AI Technology in the Beverage Industry

One of the biggest challenges facing the beverage industry is sustainability. Companies are feeling the pressure to reduce waste and their impact on the environment. AI could be the key to developing new solutions that address this fundamental challenge. 

How to Get Started with AI

There is no doubt that artificial intelligence will be key to helping new beverage brands gain traction and compete in a rapidly expanding market.  By leveraging the power of AI and using data to anticipate new trends and target specific consumer preferences, beverage companies can remain profitable while also expanding their customer base. Here are just a few ways that AI may be able to help shape your beverage company.

  1. Find ways to fully utilize the rich insights from collecting big data and customer feedback. This will allow you to be aware of changes in consumer behavior and preferences as things unfold. While consumers will have their tried and true favorites, they are also looking for new flavors, and AI can help you stay ahead of the curve.
  2. Human research teams can make errors and let biases inform their work. AI can eliminate these barriers and collect more information faster and with more accuracy.
  3. Improve your privacy and security by eliminating the need for humans to work with sensitive consumer information.
  4. Use AI to create virtual tasting systems. AI personas can be designed to replicate your target audience and simplify the market research process. Any new products will be finely honed before they hit shelves. 

How Overproof Uses AI to Help Beverage Alcohol Brands

Overproof’s predictive model uses AI and machine learning to analyze any venue against your target account profile and provide you and your team with real-time opportunity analysis. This is done in part by leveraging the AI to analyze hundreds of thousands of online, physical, and QR code menus. With Overproof Score, you can prioritize accounts, know your market share, and outsmart your competition. To see how our AI and machine learning model works in the Overproof Web Portal and Mobile app, you can schedule a demo by visiting https://overproof.com/overproof/.

FAQs

What is artificial intelligence? 

Artificial intelligence is when machines or computers are able to execute tasks that we typically associate with humans.

How is artificial intelligence used today? 

It is being used in a wide variety of industries from finance and healthcare to criminal justice and transportation. AI helps to collect and process more data at a faster rate while also reducing mistakes and providing consumers with a more customized experience.

What are some examples of AI in our everyday lives? 

Siri and other automatic speech recognition tools are great examples of how we are already using AI on a daily basis. Virtual online assistants that help with customer service questions and concerns are also powered by AI.

What are the benefits of artificial intelligence? 

With AI, you can access better data more quickly, eliminate mistakes, gain valuable insights from customer feedback, stay ahead of trends, respond in real-time to consumer behavior, provide your market and research team with more freedom to pursue new ideas, improve privacy policies, and increase revenue.

How is artificial intelligence related to machine learning? 

Machine learning is considered a subfield within artificial intelligence. It is one feature that helps to make AI possible. 

How is AI being used in the alcohol beverage industry? 

Much like other industries, AI is being used to help brands collect and leverage data, create personalized customer experiences, and improve everything from marketing to supply chain.

What are some examples of artificial intelligence in the beverage industry? 

One example comes from the Swedish whiskey distillery Mackmyra. They used customer feedback and existing recipes to generate thousands of new recipes. These were then filtered by their master blender and fed back into the algorithm. As the machine learned what flavor combinations made sense, it was able to further refine the list of recipes until a single recipe was chosen and put into production. 

What’s the future for AI in the alcohol beverage industry? 

AI will be used to help the beverage industry becom

How to get started with AI? 

Utilize data and consumer feedback to adjust as consumer behavior changes and create new products that will help you stay ahead of the competition. Eliminate biases and errors while also accessing more data at a faster pace. Improve privacy by eliminating the need for humans to handle sensitive information. Create a virtual tasting experience to streamline your market research process with the help of AI-powered personas.

Share:

Facebook
Twitter
Pinterest
LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts:
Subscribe to

Newsletter

Stay up to date with the latest in marketing, sales, service tips and news for the beverage alcohol industry.

Related Posts
A photo of liquor bottles on a bar.
Business

Product Distribution Strategy for Alcohol Brands

Taking a closer look at what goes into product distribution can reveal opportunities to save money and devise a more honed alcohol product strategy that improves sales performance.

Photo of a bar with liquor bottles
Business

Spirits Marketing Tips for 2021

January is a notoriously slow month for alcohol sales and 2021 is going to be especially tough for retailers in light of COVID-19. Spirits marketing will be more important than ever this year.