Keurig Dr Pepper sells stake in Chobani and Pennsylvania factory

Keurig Dr Pepper Inc. (NASDAQ: KDP) and Chobani have announced a series of transactions designed to strengthen their long-standing partnership and support the growth and capital allocation goals of both companies. The agreements include the sale of Keurig Dr Pepper’s equity stake in Chobani and its Pennsylvania manufacturing facility to Chobani, along with the expansion of their commercial relationship.

Under the agreement, Keurig Dr Pepper will sell its full equity stake in Chobani for $800 million. In a related transaction, Chobani will acquire Keurig Dr Pepper’s manufacturing facility and warehouse in Allentown, Pennsylvania, for approximately $125 million, including the facility lease, equipment, and operations. Chobani has committed to offering employment opportunities to the manufacturing and warehouse employees, recognizing the value of their trained workforce. However, employees in delivery, customer service, and other corporate functions will remain with Keurig Dr Pepper.

The net proceeds from these transactions will be used by Keurig Dr Pepper to reduce debt and position its two future businesses, Beverage Co. and Global Coffee Co., for long-term success. Additionally, the companies have expanded their long-term commercial relationship by updating and broadening their distribution agreement. Keurig Dr Pepper will continue to distribute Chobani-owned beverage products, including future ready-to-drink innovations, through its direct store delivery network. The companies will also maintain their long-term licensing, manufacturing, and distribution agreement for La Colombe-branded K-Cup pods in the U.S. and Canada.

Tim Cofer, CEO of Keurig Dr Pepper, stated, "These transactions reflect the success of our partnership with Chobani and are designed to create value for both organizations. Together, they enhance our financial flexibility, strengthen the efficiency of our manufacturing network, and support the expansion of our important distribution partnership with Chobani. This change also 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 & CEO of Chobani, added, "Our partnership with KDP started with La Colombe back in 2023, and it grew when La Colombe became part of Chobani. With this deal, the plant will be used to its full potential, create value and opportunity for both companies, and bring some of our best innovation to more people through KDP's reach and capabilities. And most importantly, it means more jobs and more opportunity for Pennsylvania farmers."

The transactions are expected to close in the third quarter of 2026, subject to the satisfaction of customary closing conditions.

Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company with a portfolio of iconic brands and a presence in over 100 markets globally. Its North American refreshment beverage business holds leadership positions in carbonated soft drinks, water, juice, and mixers, while its global coffee business includes the Keurig single-serve brewing system and powerful brands such as Peet's, L'OR, and Jacobs. The company’s commitment is to enhance every beverage and coffee occasion while making a positive impact for people, communities, and the planet.