Keurig Dr Pepper Advances Strategic Priorities Through Enhanced Partnership with Chobani

Keurig Dr Pepper Inc. and Chobani announced a series of transactions aimed at strengthening their strategic partnership while addressing growth and capital needs for both companies. As part of the agreement, Keurig will sell its full equity stake in Chobani back to the company for $800 million. Additionally, Chobani will acquire Keurig's manufacturing facility and warehouse in Allentown, Pennsylvania for approximately $125 million, which includes the facility lease, equipment, and operations.

Chobani plans to offer employment opportunities to the existing workforce at the Allentown site, aiming to ensure operational continuity. Meanwhile, employees in delivery, customer service, and other corporate functions will remain with Keurig. To ensure a smooth transition, Chobani will continue manufacturing certain products for Keurig at the facility for a defined period under a co-manufacturing agreement.

The net proceeds from these transactions will be utilized by Keurig to reduce debt as it prepares its Beverage Co. and Global Coffee Co. divisions for long-term success. The companies will also expand their long-term commercial relationship by updating their distribution agreement. Keurig will continue to distribute the La Colombe brand's ready-to-drink lattes and other Chobani-owned beverages through its direct store delivery network.

Tim Cofer, CEO of Keurig Dr Pepper, stated that these transactions reflect the successful partnership with Chobani and are intended to enhance financial flexibility and manufacturing efficiency. Hamdi Ulukaya, Founder & CEO of Chobani, noted that the deal aims to maximize the potential of the Allentown facility and create more opportunities for companies while benefiting Pennsylvania farmers.

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