Digital Twins, Food Waste and Eggs: This Week's Top Stories

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PepsiCo is working with Siemens to transform its manufacturing process. Credit: PepsiCo
This week's top food and drink stories cover NVIDIA's digital twin technology, how retailers handled the festive period and production of sustainable eggs
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Food and beverage manufacturer PepsiCo is demonstrating how cutting-edge digital technology could transform production efficiency, after trialling new industrial metaverse capabilities at its US facilities.

PepsiCo has been working with Siemens to test Digital Twin Composer technology at selected manufacturing and warehouse sites, identifying up to 90% of potential issues before physical construction.

The collaboration has also delivered faster design cycles and reduced capital expenditure, showcasing the potential applications for the food and drink sector.

According to Siemens, the technology delivers what it calls "true industrial intelligence" by combining physical AI with comprehensive digital twin capabilities.

The platform enables organisations to apply industrial AI, simulation and real-time physical data to make decisions virtually, at speed and at scale.

Avery Dennison reveals food waste costs retailers 33% of total revenue

As the food and drink sector reviews trading figures following the busy January 2025 peak season, emerging evidence suggests that waste across the supply chain could be significantly undermining profitability for retailers and manufacturers alike.

Materials science and digital identification company Avery Dennison has published research titled 'Making the Invisible Visible: Unlocking the Hidden Value of Food Waste to Drive Growth and Profitability', which predicts that the economic cost of food waste could reach US$540bn annually by 2026.

Analysis conducted independently by the Centre for Economics and Business Research (Cebr) reveals that expenses linked to food waste currently represent an average of 33% of total revenue across the retail supply chain, covering everything from post-farm processing through to the point of sale.

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Major food companies and retailers are committed to creating more sustainable food systems, yet the scale and complexity of supply chains present significant challenges, according to dsm-firmenich.

The global company, which specialises in nutrition, health and beauty innovation, is working to tackle sustainability challenges within the poultry supply chain.

dsm-firmenich's Animal Nutrition & Health business has partnered with Hardeman Egg Group and Royal Agrifirm Group to produce sustainable eggs.

Tesco research reveals most purchase decisions now happen in-store

The food and drink sector faces a significant transformation in how consumers make purchasing decisions, with research revealing patterns that could reshape everything from product development to distribution strategies.

Long-held beliefs about predictable shopping habits and brand loyalty are being questioned by new findings that point to a far more fluid marketplace than previously understood.

With digital privacy regulations reshaping how brands can advertise, retail media networks have become essential tools for food and drink manufacturers seeking to connect with consumers.

These platforms leverage first-party customer data to engage shoppers during critical moments of decision-making, driving what industry analysts call the Inspiration Economy.

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The 2025 Christmas period proved that British consumers' appetite for festive food and drink remains resilient, even as household budgets face continued pressure.

Whilst the retail landscape witnessed shifting spending patterns, the food and beverage category emerged as the clear winner during the year-end trading period.

UK supermarkets recorded an unprecedented £500m (US$670.4m) in daily sales during the Christmas run-up, marking a new industry milestone.

However, this spending surge was not evenly distributed, with consumers prioritising their grocery purchases whilst cutting back on non-food items and turning to low-priced online platforms for clothing, electronics and homeware.

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