It is not if you should use artificial intelligence, it is how you should use it

We had to add an extra trend for 2026

It is not if you should use artificial intelligence, it is how you should use it

You know how you do some work and believe it is a valuable contribution? We felt our 2026 trends were good information for people in our food and beverage industry. We made notes through the year, tried to give you a unique perspective and summarize what is happening to help with where to focus and commit resources. Then when we were sharing them each week, we realized there was a glaring gap. We had not addressed the issue of artificial intelligence (AI). Not sure how we missed it but we did. Food producers and processors need to understand how consumers and customers are using AI to ensure these stakeholders will find you products and that when they use these platforms your products are front and center. You also need to understand how these platforms can impact your business. There are many options out there and some are better than others for tasks in your business. You also need to make sure you are not so dependent that your business is void of the humans with experience and expertise or that you can be severely impacted if AI cannot function.

Our SKUFood trends are different. We focus on the entire value chain and look for insights to help you as you navigate through another year in this challenging industry. There are several sources for trends to help you understand what is happening with consumers. They are important and we encourage you to consider how they impact your target market and your products.

Consider how customers and consumers are using AI

To ensure you stay on the shelf consumers need to pick up your product. This can start a long time before they get to the store. Consumers are using AI a number of different ways. One that is really changing is internet searches. Google had the market cornered on searching. You had to make sure your online presence was strong enough to be picked up by their algorithms. Now you need to be relevant to AI when people search. Try using some of the platforms to search in your category and for your products. You can enter questions such as “what is the best salsa made in Canada” to see if your business is getting mentioned.

AI is making it easier for consumers to compare items and understand differences. They can compare nutrition attributes very quickly and make informed decisions. Informed decisions assumes the data AI is using is accurate.

Believe it or not consumers are asking AI for advice on what to buy and where to find the best deals. This can be done based on attributes and pricing compared from store to store. People do not have to spread the flyers on the kitchen table any more.

One area where AI will really have an impact is to provide personalized shopping recommendations. Consumers can create their own profile and tell AI to generate weekly menus that deliver XXg protein and enough servings of fruits and vegetables to meet or exceed Canada’s Food Guide. They can also train AI to stay away from items they do not like to eat.

You know you need to keep working on your customer relationships. Retailers are putting more focus on AI than ever and you need to know how it impacts your business. One obvious area is loyalty cards. Retailers are collecting so much data from loyalty member’s purchases they can make very accurate recommendations. Soon retailers will be able to predict a lot of the items consumers will need on their list each week. Suppliers need to understand how to get their products included in these recommendations.

Retailers will be offering enhanced product discovery beyond normal purchased products because AI understands individual shopping habits. Streaming platforms are doing this now to recommend your next show. It does seem like they are trying to help you but reality is they want you watching their network. Food retailers are trying to make it as easy as possible for you to buy what you will need.

There are many examples of retailers trying to reduce overhead costs as they employ more AI. This technology can replace repetitive tasks but retailers need to be careful. Recent examples of mislabeled products in stores could be an indication people are putting too much reliance in the system and not doing a physical check to ensure the label is correct.

The supply chain part of retailers has been using AI to enhance demand forecasting and inventory management. Great applications for this technology but do not assume they are always right. A more educated guess, based on the ability to analyse huge amounts of data. Perhaps not always understanding consumer behaviour which comes from humans who have real life experience. Good suppliers are still looking at purchase orders to ensure the customer is ordering the right amount. Seasonal programs can use more predictive analytics to improve the accuracy of the forecasting. A 50% markdown on Halloween candy is not good for anyone. AI can help by analysing significant amounts of data to determine the right amount.

We see AI being used in food service too. If you are selling into this channel, you will probably see it more at the chains than the independents. Forecasting sales in food service is probably more important than retail. Many items have very short shelf life and you do not always get a second chance to sell them.

Staff scheduling can be the difference between success and failure. The right number of staff to get the food out when people want it will keep them happy. Too many staff with low sales can destroy the bottom line. Using AI to know when it will be busy vs not and real time data updates are all common today.

More and more food service is being ordered online and delivered. AI can analyse purchase data to predict volume and track food delivery.

Challenge your own business to adopt AI effectively

It is good to understand how your customers and consumers are using AI. You also need to focus your efforts on what is happening in your business. AI can be used in almost every part of your business.

Our research indicates AI is most effective when you find the best solutions in each functional area. Some AI platforms are better for sales and marketing whereas others are better for the plant or logistics. Each department should be tasked with doing some research to determine what is best for them.

Chances are your competition are using this technology. You cannot let them get ahead of you or there is a chance they will find some competitive or cost advantages.

Encourage your people to bring AI solutions forward that improve results or deliver efficiencies. Let your customers know about some of these initiatives. They need to understand your business is progressive and trying to improve. Perhaps you had a 10% increase in packaging costs but you were able to keep your selling price the same because you found some savings from an AI initiative in logistics. Make sure they know about these wins.

Use it but do not let it run the show

This area is changing so fast you do need to investigate and implement the right opportunities. You also have to ensure you are not so reliant that your business can be taken down with a cyber-attack. Implement efficiencies but maintain the right amount of human oversight and ask yourself the question, ‘if we do have an incident can we still produce product and get it out the door?’ Your customers will be sympathetic but at the end of the day they expect the product they order from you when they want it.

The technology can do significant work in your business but you probably still need that human experience to make the right decisions.

One other consideration when using AI is everyone has access to this so you need to figure out how do you use it but remain unique and deliver value to consumers and customers.

We apologize for missing this in our first list of trends but happy we are able to add it as #11. Next week we will get back to our series on sales in your business.

I do have travel coming up to Toronto, Regina, Saskatoon, Vancouver and Guelph so if you want to connect or have an event in any of these locations give me a call or send me an email.

 Peter

SKUFood Recipes for Success Podcast

In this episode of SKUFood Recipes for Success, we sit down with Peter Neal, co-founder of Neal Brothers Foods and a passionate advocate for mental health and human-centred leadership.

For more than three decades, Peter has helped build one of Canada’s most respected family-owned CPG brands, known for their signature tortilla chips and salsas which has grown to encompass over 50 products. Alongside growing Neal Brothers Foods, he also took on the complex challenge of distribution in Canada, forming Jonluca Neal, a leading natural food distributor representing over 200 brands across the country.

In our conversation, Peter shares how Neal Brothers evolved from a small family venture into a national Canadian brand, and how core values like integrity, authenticity, and care have guided every stage of growth. We explore what it really takes to scale in Canadian retail, why strong brand foundations matter, and how owning both brand and distribution creates strategic advantage.
We also touch on Peter’s commitment to mental health advocacy and why resilience, people-first leadership, and open conversations about well-being are essential for long-term success in today’s food industry.

This episode offers insight not just into building great products, but into building a brand that stands for something. Whether you’re a food entrepreneur, CPG founder, or industry leader, this conversation delivers perspective, inspiration, and practical lessons for the long haul.

If you would like to be a guest send us a note. We are always working on the upcoming episodes.

There are a lot of opportunities for Ontario food and beverage products. Whether it is close to home or new markets, consumers want these products which means retailers want them in stores. A spot on the shelf and a great product is no guarantee of success. Join us for 5 action packed sessions to ensure you know how to sell that great product you have. We will focus on consumers, customers, pricing, channel partners, promotion plans and so much more. Really excited to be part of this program for Ontario food and beverage businesses.

Excited to have the opportunity to be in the room with producers and processors in Saskatoon on March 26^th. We are going to talk about “Selling the in the new world”. So many things changing which is a challenge but also lots of opportunities. We believe this is the best time for Canadian products to get on the shelf at home and in export markets. Demand is great but you need to be ready to take advantage and have your business ready to succeed. We will talk about consumers, alignment with retailers, retail plan to sell your great products and how to build trust with the market.

Retail Readiness Workshop for Food, Beverage & Ingredient Processors – March 26

Loblaw fined for mislabelling products

We have experienced a huge shift in the industry as consumers are looking for and buying Canadian products in the grocery store. This is such a big win for our industry in Canada. Retailers have responded by adding a lot of signage to help consumers make an informed choice.

Managing signage on 35,000 SKUS in a conventional store is a challenge. Yes retailers have big sales and profits and they should get it right. They also make mistakes. This week, for the second time, Loblaw have been fined by CFIA for putting product of Canada on imported products. There are calls for higher fines to ‘force them to get it right or take the issue more seriously’. We understand the perspective. We also don’t think retailers are making these mistakes on purpose. Consumers are not buying more because they are Canadian, they are just switching within a category. Escalating fines to make it a deterrent to implement these signage programs would really hurt the suppliers more than anyone.

With the focus on Canadian food and beverage we wanted to share a program we have developed with Alain Bosse, the Kilted Chef. We partner to share insights about Canadian food and beverage at conferences and events. We talk about where products come from, share insights about some hidden gems and of course Chef Alain has great tips for using the products at home. This is designed to be entertaining and engaging. Not just for food industry audiences, it works for everyone.