Keurig Dr Pepper to sell Chobani stake and PA facility for $925 million

Keurig Dr Pepper Inc. (KDP) has agreed to sell its entire equity stake in Chobani back to the company for $800 million. Additionally, KDP will sell its manufacturing facility and warehouse in Allentown, Pennsylvania, to Chobani for approximately $125 million. The total pre-tax proceeds from these transactions are expected to reach $925 million.

KDP intends to use the proceeds to reduce debt as it prepares to position its future Beverage Co. and Global Coffee Co. businesses for long-term success. Chobani will acquire the Allentown facility, including its lease, equipment, and operations, and plans to offer employment opportunities to the site’s manufacturing and warehouse staff to ensure operational continuity.

The two companies are also expanding their long-term commercial relationship. KDP will continue to distribute Chobani-owned beverage products, such as La Colombe ready-to-drink lattes, through its direct store delivery network. They will also maintain their existing agreement for the licensing, manufacturing, and distribution of La Colombe-branded K-Cup pods in the United States and Canada. The transactions are expected to close in the third quarter of 2026.