Keurig Dr Pepper Reshapes Chobani Manufacturing Partnership Ahead of Split
Keurig Dr Pepper and Chobani are continuing to partner to leverage growth opportunities via corporate and manufacturing transactions.
First, KDP will sell its full equity stake in Chobani back to the company for $800 million.
Additionally, Chobani will acquire KDP's manufacturing facility and warehouse in Allentown, Pennsylvania, for approximately $125 million. The deal includes the facility lease, equipment and operations.
Those employed by KDP in delivery, customer service and other corporate functions will remain with the company, while Chobani plans to offer employment opportunities to the site's manufacturing and warehouse employees.
Chobani will continue to manufacture certain KDP products at the Allentown facility for a transitional period after the sale closes. And KDP will use the funds from these transactions to pay down its debt as it builds out its two future businesses: Beverage Co. and Global Coffee Co.
[Learn More: Keurig Dr Pepper to Split Beverage, Coffee Businesses Following JDE Peet’s Acquisition]
The Allentown deal is part of more than $4 billion Chobani is investing across its U.S. manufacturing network to build out its capacity and capabilities as it scales for growth. The company will invest $1.2 billion over the next five years in the 1.5-million-square-foot manufacturing and warehouse campus, creating more than 900 jobs and establishing a major new hub for the company.
The companies are continuing their distribution agreement.
KDP will continue to distribute the La Colombe brand's ready-to-drink lattes and other Chobani-owned beverage products through its direct store delivery network. The companies will also continue their long-term licensing, manufacturing and distribution agreement for La Colombe-branded K-Cup pods in the U.S. and Canada.
"These transactions reflect the success of our partnership with Chobani and are designed to create value for both organizations," Tim Cofer, CEO at Keurig Dr Pepper, said in a statement. "Together, they enhance our financial flexibility, strengthen the efficiency of our manufacturing network and support the expansion of our important distribution partnership with Chobani."
Cofer also said the change positions the Allentown facility for continued growth "under an owner whose strategic priorities are well matched to the site, while ensuring continuity for our brands, customers and employees."
Hamdi Ulukaya, founder and CEO of Chobani, said that through these deals, the Allentown plant will be used to its full potential, leveraging KDP's reach and capabilities to bring more innovations to market.
The transactions are expected to close in the third quarter of 2026.
