Keurig Dr Pepper has agreed to exit its shareholding in Chobani and sell a manufacturing and warehousing site to the dairy group.
In a statement yesterday (1 September), the Dr Pepper and Keurig owner said it will divest its full equity stake in Chobani back to the business for $800m.
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Separately, Chobani will also buy KDP’s plant and warehouse in Allentown, Pennsylvania, for around $125m, covering the lease, operations and machinery.
Keurig Dr Pepper CEO Tim Cofer said these transactions are “designed to create value for both organisations”.
The deals “enhance our financial flexibility, strengthen the efficiency of our manufacturing network and support the expansion of our important distribution partnership with Chobani”, Cofer added.
KDP said it plans to use the net proceeds from the deals “to reduce debt as it positions its two future businesses, Beverage Co. and Global Coffee Co., for long-term success”.
The group agreed to buy JDE Peet’s for €15.7bn ($18.36bn) last August and divide the enlarged group into a North American drinks business and a separate coffee company.
In February, after lining up additional financing for the takeover, KDP said it was considering further steps, including the sale of non-core assets, to speed up deleveraging.
The latest deals with Chobani are due to be completed in the third quarter of 2026, provided the usual closing conditions are met.
KDP took a minority stake in the US coffee roaster La Colombe in July 2023, and also became the brand’s distributor.
When Chobani acquired La Colombe in December 2023, KDP then exchanged that holding for a minority interest in Chobani.
According to KDP’s 2025 annual report, that stake later rose to 5.9%.
For Chobani, the Allentown purchase forms part of plans for “establishing a major new hub for the company’s growth”.
In a separate statement, the Greek yogurt maker said it will invest about $1.2bn over the next five years into the 1.5 million-square-foot campus, and create more than 900 jobs.
Hamdi Ulukaya, Chobani founder and CEO, said: “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.”
Chobani said the facility, which began production in 2021, will support products made from milk with higher protein and lower sugar than traditional milk, including multi-serve milk and protein shakes.
It added the site is within 500 miles (804.6km) of about 40% of the US population.
“With plans for up to 10 production lines, Allentown will give Chobani the capacity to scale these new products while continuing to develop new formats and food and beverage platforms, moving innovation from idea to shelf faster and bringing consumers more great food and more choices”, the company’s statement said.
Chobani will also continue making certain KDP products at the facility for a defined period under a co-manufacturing arrangement.
KDP will continue to distribute La Colombe ready-to-drink lattes and other Chobani-owned beverages through its direct-store-delivery network, including future RTD launches.
The “long-term” licensing, manufacturing and distribution agreement between both parties for La Colombe-branded K-Cup pods in the US and Canada will also continue.
