Chobani to buy back Keurig Dr Pepper stake for $800 million

Keurig Dr Pepper and Chobani have announced a series of transactions designed to strengthen their strategic partnership. As part of the agreement, Keurig Dr Pepper will sell its full equity stake in Chobani back to the company for $800 million.

In a related move, Chobani will acquire Keurig Dr Pepper’s manufacturing facility and warehouse in Allentown, Pennsylvania, for approximately $125 million. This acquisition includes the facility lease, equipment, and operations. Chobani intends to offer employment opportunities to the site’s existing manufacturing and warehouse workforce to ensure operational continuity.

To maintain a seamless transition, Chobani will continue to manufacture certain products for Keurig Dr Pepper at the Allentown facility for a defined period under a co-manufacturing agreement. Additionally, the companies have updated their distribution agreement, allowing Keurig Dr Pepper to continue distributing La Colombe brand products through its direct store delivery network.

Keurig Dr Pepper plans to use the net proceeds from these transactions to reduce debt as it prepares its Beverage Co. and Global Coffee Co. business units for long-term growth. The transactions are expected to close in the third quarter of 2026, subject to customary closing conditions.