At CES 2026, PepsiCo unveiled a first-of-its-kind partnership with Siemens and NVIDIA to use AI-powered digital twins to redesign plants and supply chains.
At CES 2026, PepsiCo announced a multi-year collaboration with Siemens and NVIDIA to transform its manufacturing plants and supply chain operations using advanced digital twin technology and artificial intelligence.
The partnership marks an industry first for a global consumer packaged goods company, applying physics-based digital twins at scale to digitally simulate, test and optimise plant and warehouse operations. Early pilots are already underway in the United States, with plans to expand globally.
As demand for production and distribution capacity increases, PepsiCo is turning to AI-driven simulation and digital facility design to modernise its existing footprint. Traditional expansion methods, executives say, are slow, capital-intensive and limit the flexibility needed to respond to shifting consumer demand.
“The scale and complexity of PepsiCo’s business, from farm to shelf, is massive,” said Ramon Laguarta, chairman and chief executive of PepsiCo. “By embedding AI throughout our operations and working with Siemens and NVIDIA, we are accelerating our journey to become a future-fit company that operates with greater agility and foresight.”
At the core of the initiative is a shift to digital-first planning. PepsiCo is using physics-based digital twins and AI agents as co-designers, enabling teams to simulate, validate and optimise facility layouts before any physical construction or upgrades take place. The company is deploying Siemens’ Digital Twin Composer, built on NVIDIA Omniverse libraries, to model upgrades across U.S. facilities, with global rollout planned.
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“Physical industries are entering the age of AI,” said Jensen Huang, founder and chief executive of NVIDIA. “With physically accurate digital twins and AI, PepsiCo is re-architecting how it designs, optimises and operates its global footprint.”
Roland Busch, chief executive of Siemens AG, said the collaboration sets a new benchmark for industrial transformation. “Digital Twin Composer is a cornerstone in enabling PepsiCo to transform manufacturing and warehousing from design through operations,” he said, adding that Siemens’ industrial AI stack and domain expertise are helping power what he described as the next phase of the industrial AI revolution.
Siemens’ software enables large-scale industrial metaverse environments, combining 2D and 3D digital twin data with real-time physical information in secure, photorealistic virtual scenes accelerated by NVIDIA Omniverse. This allows organisations to make high-fidelity decisions virtually, at speed and at scale.
For PepsiCo, select U.S. manufacturing and warehouse sites have already been converted into detailed 3D digital twins, providing an end-to-end simulation of plant operations and supply chains. Within weeks, teams were able to optimise layouts and validate new configurations, boosting capacity and throughput while gaining a unified, real-time view of operations.
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By recreating every machine, conveyor, pallet route and operator path with physics-level accuracy, PepsiCo can now identify up to 90 percent of potential issues before making physical changes. Early deployments have delivered a 20 percent increase in throughput, near-total design validation, and capital expenditure reductions of 10 to 15 percent by uncovering hidden capacity in a virtual environment.
“We are deploying the first digital blueprint that reimagines how the supply chain is designed, built and scaled,” said Athina Kanioura, PepsiCo’s global chief strategy and transformation officer. “Our goal is a single, intelligent ecosystem where plants and warehouses don’t just respond to demand—they anticipate and adapt to it.”
The announcement was made at CES 2026.
