USA | At CES 2026, PepsiCo announced a multi-year, industry-first collaboration with Siemens and NVIDIA.
This collaboration marked a first-of-its-kind initiative for a global CPG company applying digital twins to reshape how plant and warehousing facilities are digitally simulated and tested, with early pilots already underway in the U.S.
With demand for production and distribution capacity rising, PepsiCo has been using AI and new digital approaches to process simulation and facility design to retool and optimise its existing physical footprint.
Traditional expansion methods are slow and costly, limiting flexibility and the scalability needed to meet growing consumer needs while driving 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 help accelerate our continued journey of becoming a future-fit company, operating with agility and foresight.”
PepsiCo has shifted to a digital-first planning strategy, leveraging physics-based digital twins and AI agents as co-designers to simulate, validate, and optimise facility layouts before any physical build.
As part of these efforts, PepsiCo has been using Siemens Digital Twin Composer, built on NVIDIA Omniverse libraries, to simulate upgrades to its facilities in the U.S. with plans to scale globally.
Siemens’ new software solution builds Industrial Metaverse environments at scale, empowering organisations to apply industrial AI, simulation and real-time physical data to make decisions virtually, at speed and at scale.
This new product enables industrial companies to combine 2D and 3D digital twin data from Siemens’ comprehensive digital twin with physical real-time information from a managed, secure, photorealistic virtual scene accelerated by NVIDIA Omniverse libraries.
With Digital Twin Composer, companies can rapidly build and maintain this global environment, containing all aspects of their product or production data (both virtual and physical) in a secure, managed, high-fidelity 3D experience throughout the lifecycle of the product, process or facility.
PepsiCo and Siemens are digitally transforming select U.S. manufacturing and warehouse facilities by converting them into high-fidelity 3D digital twins that simulate plant operations and the end-to-end supply chain to establish a performance baseline.
Within weeks, teams optimised and validated new configurations to boost capacity and throughput, giving PepsiCo a unified, real-time view of operations with the flexibility to integrate AI-driven capabilities over time.
Leveraging Siemens’ Digital Twin Composer, NVIDIA Omniverse and computer vision, PepsiCo can now recreate every machine, conveyor, pallet route and operator path with physics-level accuracy, enabling AI agents to simulate, test, and refine system changes - identifying up to 90 percent of potential issues before any physical modifications occur.
This approach has already delivered a 20 percent increase in throughput on initial deployment and is driving faster design cycles, nearly 100 percent design validation and 10 to 15 percent reductions in capital expenditure (Capex) by uncovering hidden capacity and validating investments in a virtual environment.
"We are deploying the first digital blueprint that reimagines how the supply chain is designed, built, and scaled, a first for the industry," said Athina Kanioura, CEO, Latin America, and Global Chief Strategy & Transformation Officer of PepsiCo.
"With a unified, AI-powered digital foundation, PepsiCo is building toward a world where every plant and warehouse operates as part of a single, intelligent ecosystem. In this future, our facilities don’t just respond to demand, they anticipate and then adapt to it."
This partnership was formally announced during the opening keynote at CES 2026, highlighting PepsiCo’s commitment to digital transformation and supply chain innovation. The collaboration brings together Siemens’ Industrial AI expertise and comprehensive digital twin technology with NVIDIA’s AI and visualisation expertise to set a new industry standard.
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