PepsiCo to use digital twins, artificial intelligence to redesign U.S. plants

PepsiCo has launched a multi-year collaboration with Siemens and NVIDIA to apply digital twin technology and artificial intelligence to its plant and supply chain operations, beginning with pilot projects in the United States and with plans to expand globally.

Announced during the opening keynote at CES 2026, the new initiative is described as a first-of-its-kind effort for a global consumer packaged goods company. The companies will use the detailed virtual models to redesign and test production and warehousing facilities before making physical changes.

PepsiCo’s digital-first planning strategy will rely on physics-based digital twins and artificial intelligence agents as co-designers for future facilities and upgrades. According to the company, this approach can help it meet rising demand for production and distribution capacity while avoiding the costs and time associated with traditional brick-and-mortar expansion.

As part of the program, PepsiCo is using Siemens’ new Digital Twin Composer software, built on NVIDIA Omniverse libraries, to simulate upgrades to its manufacturing and warehouse facilities in the United States. The software creates industrial metaverse-style environments that merge two-dimensional and three-dimensional digital twin data from Siemens with real-time physical information rendered in a photorealistic virtual scene.

Already during the pilot testing, PepsiCo and Siemens have virtually converted select plants and warehouses into detailed three-dimensional digital replicas that model end-to-end operations, including the supply chain. The company reports that teams were able to establish a performance baseline and validate new configurations within weeks rather than over longer traditional design cycles. PepsiCo says the work has already produced a 20% increase in throughput in initial deployments.

PepsiCo reports that the digital twin pilots are delivering faster design cycles and capital expenditure savings between 10 and 15% by uncovering hidden capacity and testing investments in a virtual environment.

Ramon Laguarta, PepsiCo chairman and CEO, said in a statement that the company is embedding artificial intelligence throughout its operations to better manage the complexity of its “farm to shelf” business. “Our work with Siemens and NVIDIA will help accelerate our continued journey of becoming a future-fit company, operating with agility and foresight,” he said.

Athina Kanioura, CEO, Latin America, and global chief strategy and transformation officer at PepsiCo, said the company is “deploying the first digital blueprint that reimagines how the supply chain is designed, built and scaled.” She said PepsiCo is working toward a unified, artificial intelligence-powered foundation in which every plant and warehouse operates as part of a single intelligent ecosystem that anticipates and adapts to demand.