PepsiCo’s Digital Transformation: Embracing Innovation in Agriculture

In 2025, PepsiCo took significant strides in achieving its digital transformation objectives by launching the Digital North Star framework. This initiative aims to enhance its supply chain processes, support farmers, and ensure that consumers continue to enjoy the products offered by the consumer packaged goods (CPG) giant.

Unveiled during PepsiCo’s Innovation Summit in Thailand during the summer, the Digital North Star framework spotlights eight pivotal technologies deemed strategically important, as explained by Rob Meyers, Vice President of Agriculture at PepsiCo.

Key Technologies in the Digital North Star Framework

These eight technologies are categorized into three core competencies:

• Seed Potato Production: Standardized seed data and optimization of seed planning.
• On-Farm Production: Agronomic data management, in-season agronomic support, and integrating farm-to-market data.
• Post-Harvest: Storage data acquisition, storage automation, and early defect detection through sensing and unwashed grading.

Meyers, who has been with PepsiCo’s agriculture department since its inception nearly two decades ago, reflects on the evolution of the department to address various supply chain challenges through technology.

“When I began examining our supply chain, I was surprised by the level of risk present and how that risk extends to farmers daily,” he noted. “Recognizing that farmers’ risks are also our risks formed the foundation of our partnership approach.”

AI Strategy: A Cautious Yet Calculated Approach

In 2025, artificial intelligence (AI) gained considerable attention, making companies—including PepsiCo—question the pace at which they should invest in this field. “With AI, we even asked, ‘Should we just let it happen?’” Meyers admitted.

While many firms feel the urgency to adopt AI rapidly, PepsiCo has opted for a more measured approach. “We are taking a methodical route to ensure that AI benefits both our associates and farmers,” Meyers explained.

For example, the company has introduced an AI-based “opportunity assessment tool” aimed at enhancing the potato supply chain, which is particularly challenging given the vegetable’s transport issues. This tool assists farmers and third parties in improving potato storage practices.

Additionally, PepsiCo is in the process of developing small language models to analyze information on specific potato varieties, offering agronomists crucial insights to combat crop diseases.

“We utilize this technology to gauge potential disease pressures within potato roots, which is typically a time-intensive process. AI allows us to conduct smaller digs and gather images for analysis, saving significant time,” Meyers elaborated.

Leveraging Virtual Reality to Tackle Labor Challenges

Moreover, PepsiCo is collaborating with agricultural stakeholders to address ongoing labor challenges. This includes a notable partnership with a prominent potato harvesting company, as hinted by Meyers.

Together, they have developed a virtual reality (VR) training program that simulates the experience of operating a harvester. This initiative was showcased at the inaugural Global Farm Awards, where it was particularly well-received by younger attendees.

“With this partner, we created a digital twin of their harvester to augment training initiatives,” Meyers explained.

In addition to enhancing its technological capabilities, PepsiCo has engaged in numerous regenerative agriculture projects globally, including efforts in Brazil, Poland, France, and Belgium this year.