At CES 2026, PepsiCo (NASDAQ: PEP) announced a multi-year, industry-first collaboration with Siemens and NVIDIA to digitally transform its manufacturing plants and supply chain operations using advanced digital twin technology and artificial intelligence.
The initiative marks the first time a global consumer packaged goods (CPG) company has applied physics-based digital twins at scale to simulate, test, and optimize plant and warehouse operations before making physical changes. Early pilot projects are already underway at select facilities in the United States, with plans for global expansion.
A Digital-First Approach to Scaling Operations
As demand for production and distribution capacity continues to grow, PepsiCo is rethinking traditional expansion models, which are often capital-intensive, slow to deploy, and limited in flexibility. By adopting AI-powered process simulation and digital facility design, the company aims to unlock hidden capacity within its existing footprint while accelerating innovation.
“The scale and complexity of PepsiCo’s business, from farm to shelf, is massive and we are embedding AI throughout our operations to better meet the increasing demands of our consumers and customers,” said Ramon Laguarta, Chairman and CEO of PepsiCo. “Our work with Siemens and NVIDIA will accelerate our journey to becoming a future-fit company that operates with agility and foresight.”
Digital Twins as Co-Designers
Central to the collaboration is PepsiCo’s shift to digital-first planning, where AI agents and physics-accurate digital twins act as co-designers. These virtual environments allow teams to simulate, validate and optimize facility layouts, workflows and supply chain configurations before any physical build or retrofit.
PepsiCo is leveraging Siemens’ Digital Twin Composer, built on NVIDIA Omniverse libraries, to create high-fidelity 3D simulations of manufacturing and warehousing facilities. Initial deployments focus on U.S. sites, with a roadmap to scale the solution globally.
“Physical industries are entering the age of AI,” said Jensen Huang, founder and CEO of NVIDIA. “Digital twins are the foundation of this transformation. Together with Siemens, PepsiCo is using physically accurate digital twins and AI to reinvent how global operations are designed, optimized and run.”
Building the Industrial Metaverse
Siemens’ Digital Twin Composer enables organizations to create Industrial Metaverse environments at scale, combining 2D and 3D digital twin data with real-time physical information in a secure, photorealistic virtual scene.
“We are proud to partner with PepsiCo and NVIDIA to digitally transform manufacturing from design to operations,” said Roland Busch, CEO of Siemens AG. “With our industrial AI stack and deep domain expertise, this collaboration sets a new benchmark for how companies can turn ideas into real-world impact faster and more efficiently.”
The platform allows companies to integrate product, process and facility data—both virtual and physical—into a single managed 3D environment across the full lifecycle of operations.
Early Results Show Significant Gains
By converting select U.S. manufacturing and warehouse facilities into high-fidelity digital twins, PepsiCo has been able to establish performance baselines and rapidly test new configurations. Using computer vision, AI agents and physics-level simulation, teams can recreate every machine, conveyor, pallet route and operator path with extreme accuracy.
This approach has enabled PepsiCo to:
- Identify up to 90% of potential issues before physical changes
- Achieve a 20% increase in throughput in initial deployments
- Deliver near-100% design validation
- Reduce capital expenditure by 10–15% by uncovering hidden capacity and validating investments virtually
“We are deploying the industry’s first digital blueprint for how supply chains are designed, built and scaled,” said Athina Kanioura, PepsiCo’s Global Chief Strategy & Transformation Officer. “With a unified, AI-powered digital foundation, every plant and warehouse becomes part of a single intelligent ecosystem—one that anticipates demand and adapts in real time.”
Setting a New Standard for CPG Manufacturing
By combining AI, digital twins and real-time operational data, PepsiCo’s collaboration with Siemens and NVIDIA represents a significant shift in how large-scale manufacturing and logistics networks are planned and operated. The initiative positions PepsiCo at the forefront of industrial AI adoption, setting a new standard for agility, efficiency and resilience across the global CPG sector.