USA | Keurig Dr Pepper and Chobani announced a series of transactions that strengthen their longstanding strategic partnership while advancing both companies' growth and capital allocation priorities.
As part of the agreement, KDP will sell its full equity stake in Chobani back to the company for USD 800 million.
In a related transaction, Chobani will acquire KDP's manufacturing facility and warehouse in Allentown, Pennsylvania, for approximately USD 125 million, including the facility lease, equipment and operations.
Chobani has intended to offer employment opportunities to the site's manufacturing and warehouse employees, recognising the value of the trained workforce and helping ensure operational continuity. Employees in delivery, customer service and other corporate functions will remain with KDP.
To facilitate a seamless transition, Chobani will continue to manufacture certain products for KDP at the Allentown facility for a defined period after the sale under a co-manufacturing agreement.
KDP has intended to use the net proceeds from the transactions to reduce debt as it positions its two future businesses, Beverage Co. and Global Coffee Co., for long-term success.
Additionally, the companies have expanded their long-term commercial relationship by updating and broadening their distribution agreement, with KDP continuing to distribute the La Colombe brand's RTD lattes and other Chobani-owned beverage products through its direct store delivery (DSD) network, including future RTD innovations.
The companies will also continue their long-term licensing, manufacturing and distribution agreement for La Colombe-branded K-Cup pods in the U.S. and Canada. The transactions are expected to close in the third quarter of 2026, subject to customary closing conditions.
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