New opportunities through digitalisation: From sweets production through to sales

The integration of digital technologies into the production processes is leading to a considerable improvement in the efficiency and quality. Companies in the sweets industry are increasingly relying on innovative approaches to maximise their production capacities and at the same time reach sustainable goals.

During the COVID-19 pandemic Nestlé considerably expanded the use of Augmented Reality technologies (AR) to enable remote support for production and research locations.

With the aid of smart glasses, 360 degree cameras and 3D software, teams of experts were able to support complex tasks like the installation of new production lines, maintenance work and monitoring equipment remotely. This not only reduced the necessity for business trips, it also increased the efficiency and accelerated workflows.

Long-term Nestlé plans to continue implementing these technologies. The aim is to make the production processes more sustainable and reduce the CO₂ emissions. This innovative approach shows how digital technologies can contribute towards optimising operating procedures.

The implementation of Internet of Things (IoT) technologies allows machines and processes to be monitored in real-time. This leads to precise control, the early recognition of errors and minimal production downtimes.

Zentis Süßwaren GmbH & Co. KG has for instance significantly optimised its production using oee.ai , a solution for holistic production monitoring. Thanks to real-time data, improved machine capacities and faster problem shooting can be realised.

As is well-known, Ferrero relies on cutting-edge, digital solutions to increase the efficiency of its sweets production.

A remarkable example is the usage of plant simulation from the Tecnomatix® portfolio in combination with the automation technology SIMATIC. These technologies were implemented to optimise the planning and commissioning of a high-bay warehouse. Digital simulations not only enabled Ferrero to accelerate the planning process, but also adapt the production capacity efficiently. Although the specific implementation of robots is not documented, Ferrero is demonstrating with these measures how automation and digital tools can contribute towards increasing productivity.

Digital technologies contribute significantly towards a more sustainable sweets production by optimising the processes, using resources more efficiently and reducing waste. Innovative approaches create new possibilities for companies to achieve environmental goals and at the same time remain competitive. This also applies for the sweets industry, where sustainability becomes increasingly more significant.

Through the integration of IoT sensors and AI-supported analytics, production systems can be continually monitored and optimised. For example, Ritter Sport uses a cogeneration plant that covers 70 percent of the factory's energy requirements and the sweets production is carried out completely using renewable energy. In addition the recycling capacity is increased by using mono-materials for packaging.

Digital technologies like blockchain offer complete transparency in the supply chains. This is particularly relevant in the sweets industry, where the origin of raw materials like cocoa is of key significance.

For example, Chocolats Halba is supporting 2,500 farmers in West Africa in changing over from cocoa monocultures to sustainable mixed cultures to avoid deforestation. 90 percent of the company's products carry sustainability labels which is supported by digital traceability.

Digital twins, i.e. virtual representations of production systems or products allow companies to simulate and optimise production processes in advance.

Zotter Schokolade relied on sustainable chocolate production and maximum transparency at an early stage: In its "experience world", the company offers a detailed insight into bio-certified, fair trade production and uses digital means to optimise the production.

The end customers can be informed about sustainable products via digital platforms in a targeted manner. For example, SweetConnect supports the optimisation of production processes using real-time analyses, which not only saves resources, but also results in more sustainable products. QR codes on packaging could in future contribute towards detailed information on the sustainability being passed on directly to the end customers.

Artificial Intelligence already supports many companies today with the development and implementation of sustainable strategies. Many sweets companies analyse optimisation options using AI and data-based approaches to reach their environmental goals efficiently. This allows waste, energy consumption and emissions to be reduced in a targeted manner.

Digitalisation is opening up innovative sales channels and targeted marketing strategies to the sweets industry. Companies can bring their products to the customers in a more efficient and personalised manner through the targeted usage of E-Commerce, data-based target group analysis and Artificial Intelligence.

Many sweets manufacturers are relying more heavily on direct sales via online platforms. One example is the company HARIBO, which offers personalised round tins in its online shop. Customers can select different templates for the label design, compile a personal greeting and add an own photo. However, putting together individual compilations of product mixtures is currently not possible.

By analysing customer data manufacturing companies can address their target groups selectively. For instance Ritter Sport was able to develop targeted marketing strategies and create limited editions to accurately accommodate the target group's taste.

One example of this is the vegan chocolate "Cacao y Nada", which was introduced in 2021 as a reaction to the trend towards plant-based products and sugar-free alternatives. After a fan voting Ritter Sport also revived the popular flavour "Olympia" - a classic creation from the 1980s which proved to be a further success thanks to the community feedback and trend analyses.

Furthermore, seasonal products like the "Summer Mix", which includes flavours like "Strawberry Vanilla Wafer" or "Coconut Wafer Style" that are in line with seasonal taste trends also appear annually. The popular "Choco Cubes Christmas Editions" are regularly adapted too, based on the opinions of customers as well as the sales figures on Christmas aromas.

Milka uses digital technologies to support the direct-to-consumer sales too. Marketing strategies are optimised using Artificial Intelligence to compile personalised contents for E-Commerce campaigns. For example, interactive campaigns like the "Say it with a song!" campaign, which enabled customers to create an AI-generated song using the campaign package, provided the customers with an individually aligned experience.

Furthermore, the parent company, Mondelez International, plans to implement AI platforms to include real-time data in the generation of advertising contents that react directly to the changing target group needs. This connection between technology and sales shows how companies are strengthening the online market with innovative approaches.

In spite of the many advantages, the digitalisation of the sweets production also bring challenges with it. High investment costs and the integration of new technologies into existing system present above all small companies with major obstacles. Protecting sensitive customer data is also a key issue that demands the strict observance of data protection guidelines like the European General Data Protection Regulation (GDPR).

Nevertheless, the opportunities outweigh the challenges. The digitalisation allows more efficient work procedures, an improved target group address and the development of innovative products. In the coming years the increased networking, combined with Artificial Intelligence and automation will further revolutionise the sweets industry. Companies that become involved in this development early on can secure themselves a decisive competitive edge. By focusing on sustainability and creative approaches, the industry will not only increase its efficiency and success, it will also set new benchmarks in customer experience.