Under the agreement, KDP will sell its entire equity stake in Chobani back to the yogurt maker for $800 million. In a related deal, Chobani will acquire KDP's manufacturing and warehouse facility in Allentown, Pennsylvania, for approximately $125 million, including the site's lease, equipment and operations.
Chobani said it plans to offer employment to the plant's manufacturing and warehouse staff to ensure operational continuity, while KDP employees in delivery, customer service and other corporate roles will remain with the company. A co-manufacturing agreement will keep Chobani producing certain KDP products at the Allentown site during a transition period.
KDP said it will use the net proceeds to pay down debt as it positions its two future businesses — Beverage Co. and Global Coffee Co. — ahead of a planned separation.
Alongside the asset sales, the two companies are expanding their commercial relationship. KDP will continue distributing La Colombe-branded ready-to-drink lattes and other Chobani beverage products through its direct store delivery network, including future product launches, and the companies will maintain their existing licensing and manufacturing agreement for La Colombe K-Cup pods in the U.S. and Canada.
"These transactions reflect the success of our partnership with Chobani and are designed to create value for both organizations," said Tim Cofer, CEO of Keurig Dr Pepper.
Chobani founder and CEO Hamdi Ulukaya said the deal builds on a relationship that began with La Colombe in 2023, adding that the Allentown facility would now be "used to its full potential."
The transactions are expected to close in the third quarter of 2026, subject to customary closing conditions.
