Full Breakdown
Chobani’s $1.2 B Investment Transforms Pennsylvania’s Dairy Landscape
9/2/2026, 5:50:13 AM
Core Investment and Facility Transfer
Chobani is investing $1.2 billion over five years in a 1.5-million-square-foot campus in Allentown, Pennsylvania. The company will acquire the former Keurig Dr Pepper (KDP) manufacturing site at 7356 Industrial Boulevard in Upper Macungie Township for ?$125 million and repurchase its $800 million equity stake in Chobani. Announced on September 1 2026, the deal includes a co-manufacturing agreement that lets Chobani continue producing certain KDP products at the facility for a defined period after the sale. Full-scale production is slated for 2027.
Background & Context
The Allentown plant opened in 2021 as a hub for KDP’s La Colombe ready-to-drink lattes and K-Cup pods. In 2023, Chobani bought the La Colombe coffee brand for $900 million, expanding its beverage line. This transaction is part of Chobani’s broader plan to invest > $4 billion in its U.S. manufacturing network, including new dairy facilities in Rome, New York, and expansions in Twin Falls, Idaho, and Norton Shores, Michigan.
Data & Statistics
- Investment: $1.2 billion
- Facility size: 1.5 million sq ft; up to ten new production lines planned
- Jobs: > 900 full-time positions over five years
- Milk processing capacity: > 3 billion lb annually (?30 % of Pennsylvania’s milk output)
- Purchase price: $125 million for the facility; $800 million for the equity stake
- State support: $50 million in loans and grants via the PA SITES program; $127 million for eligible dairy farmers
Official Statements & Responses
Chobani founder and CEO Hamdi Ulukaya highlighted the strategic fit of the Allentown plant for growth and innovation, noting the region’s strong family-farm base. Tim Cofer, CEO of KDP, said the transactions enhance financial flexibility and preserve continuity for brands, customers, and employees.
Verbatim Quotes
- “Pennsylvania is aggressively competing for — and winning — the biggest economic development projects in the country because we’re making strategic investments, moving at the speed of business, and giving companies confidence that they will thrive here – and I’m proud this investment will benefit our dairy industry and rural communities,” — Gov. Josh Shapiro
- “Pennsylvania is home to one of the highest number of family-owned farms in the country. When we walked into this factory, we knew it was a great fit for what we want to build for the future,” — Hamdi Ulukaya
What’s Next
- Closing timeline: Expected in the third quarter of 2026, subject to customary conditions.
- Operational rollout: Production at the Allentown campus begins in 2027, starting with a high-protein milk product and later adding other dairy lines.
- Ongoing partnership: KDP will retain distribution of La Colombe RTD beverages and K-Cup pods under the existing licensing agreement, while co-manufacturing of select KDP products continues at the site for a defined period.
The investment positions Pennsylvania as a hub for high-protein dairy products, creates a new market for the state’s 4,000+ family-owned farms, and adds a substantial manufacturing footprint to the Lehigh Valley’s industrial ecosystem.
