PepsiCo Inc. announced a multi‑year collaboration with Siemens AG and NVIDIA on January 6, 2026, to deploy physics‑based digital twins and artificial‑intelligence tools across its manufacturing and supply‑chain network. The partnership, unveiled at CES 2026, will let PepsiCo model and test plant and warehouse configurations in a virtual environment before any physical changes are made, aiming to shorten design cycles and cut capital expenditures.
The alliance leverages Siemens’ newly launched Digital Twin Composer platform, which runs on NVIDIA’s Omniverse libraries. Together they provide a physics‑accurate simulation engine that can generate high‑fidelity 3‑D models of PepsiCo’s facilities and run AI agents that automatically flag operational bottlenecks and suggest capacity optimizations. The technology enables end‑to‑end digital threads—from design to engineering to operations—within a single, unified environment.
Early pilots in U.S. facilities have already reported a 20 % increase in throughput and a 10‑15 % reduction in capital spend, demonstrating the tangible cost and efficiency gains that digital twins can deliver. These results validate the platform’s ability to accelerate design decisions and reduce the need for costly physical prototyping.
PepsiCo’s CEO Ramon Laguarta said the digital‑first planning strategy will help the company “become a future‑fit company, operating with agility and foresight.” Athina Kanioura, PepsiCo’s global chief strategy officer, added that the partnership “reimagines how the supply chain is designed, built, and scaled, creating an intelligent ecosystem where every plant and warehouse anticipates and adapts to demand.”
Siemens’ CEO Roland Busch highlighted the collaboration as a benchmark for industrial AI, noting that the Digital Twin Composer “enables customers to turn ideas into real‑world impact with greater speed, quality, and efficiency.” NVIDIA’s Rev Lebaredian emphasized that integrating Omniverse libraries into the composer “provides physically accurate simulation across the entire lifecycle, from product design to factory logistics.” NVIDIA founder Jensen Huang remarked that “physical industries are entering the age of AI, and digital twins are the foundation of that journey.”
The partnership positions PepsiCo as a pioneer in the consumer‑packaged‑goods sector, setting a new standard for how large manufacturers can use advanced simulation and AI to drive operational excellence. By reducing design lead times and capital outlays, PepsiCo can deploy new facilities and reconfigure existing ones more rapidly, enhancing its ability to respond to shifting consumer demand and supply‑chain disruptions. The collaboration also signals PepsiCo’s broader commitment to embedding AI across its value chain, reinforcing its strategy to become a future‑fit company.
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