Keurig Dr Pepper (KDP) is selling its equity stake in Chobani for $800 million and its Pennsylvania manufacturing plant for about $125 million, a move aimed at strengthening an existing partnership and preparing for a corporate split. The transactions, announced for September 1, 2026, will return full ownership of the Chobani business to the yogurt maker and provide KDP with cash to reduce debt. The deal includes the Allentown facility’s lease, equipment, and operations, with Chobani promising employment to the site’s manufacturing and warehouse staff to ensure continuity.
Chobani will assume responsibility for the 1.5-million-square-foot campus and plans to invest $1.2 billion over the next five years. The company expects the site to create more than 900 jobs and support up to ten new production lines. At full capacity, the facility is projected to source more than 3 billion pounds of Pennsylvania milk annually.
The company will leverage its 20 years of dairy expertise to produce milk with more protein and less sugar than traditional options. This new milk will serve as a foundation for a new generation of dairy products, including high-protein shakes made with “real” ingredients. The site will also continue to manufacture certain KDP products under a co-manufacturing agreement for a defined period following the sale.
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While KDP retains the employees in delivery, customer service, and corporate functions, the shift marks a significant realignment of physical assets. The move allows Chobani to operate the plant at full potential, creating value and opportunity for the business while ensuring the facility remains a major hub for dairy production in the region. The investment is part of a broader $4 billion strategy Chobani is undertaking across its US manufacturing network, which also includes a new facility in Rome, New York, and expansions in Idaho and Michigan. [1] Support Package aims to bolster the region.
KDP stated it will use the net proceeds from these transactions to reduce debt ahead of its split into two separate businesses, Beverage Co and Global Coffee Co. This corporate restructuring follows the company’s acquisition of JDE Peet’s announced last year. The deal also solidifies the two companies’ distribution and licensing agreements, with KDP set to continue distributing Chobani’s La Colombe brand ready-to-drink lattes and other beverages. The partnership, which began in 2023 after Chobani acquired La Colombe for $900 million, will also continue with the manufacturing and distribution of La Colombe K-Cup pods in the US and Canada.
Tim Cofer, CEO of KDP, described the transactions as a way to enhance financial flexibility and strengthen manufacturing efficiency. He noted that the change positions the Allentown facility for continued growth under an owner whose strategic priorities align with the site. Hamdi Ulukaya, founder and CEO of Chobani, emphasized that the move will allow the plant to be used to its full potential and bring innovation to more people through KDP’s reach, while creating jobs and opportunity for Pennsylvania farmers.
