Strategic Chobani Divestment
Keurig Dr Pepper Sells Chobani Stake and Plant for $925 Million Ahead of Split
Anonymous
Key Points
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Keurig Dr Pepper's stake in Chobani originated from its 2023 La Colombe investment; when Chobani acquired La Colombe for $900 million, KDP converted its La Colombe holdings into Chobani equity.
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The $800 million equity component includes $400 million cash at closing and a $400 million promissory note from Chobani to a KDP subsidiary that matures on December 26, 2026.
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Chobani will invest about $1.2 billion over the next five years in the Allentown facility, creating more than 900 jobs as part of expanding its manufacturing footprint.
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The two companies are pursuing a split into two publicly traded entities named Beverage Co. and Global Coffee Co., while preserving an extended distribution and licensing framework for La Colombe and Chobani-branded beverages.
Keurig Dr Pepper is selling its entire stake in yogurt maker Chobani for $800 million and offloading a Pennsylvania manufacturing plant for $125 million—a $925 million exit aimed at slashing debt before the company splits into two separate public companies. Market Screener reports the deal closes in the third quarter of 2026, with $400 million paid upfront and a $400 million promissory note due later that year.
Despite the full exit, Keurig Dr Pepper and Chobani will keep working together. The yogurt giant will buy the Allentown plant and invest about $1.2 billion to expand it over five years, creating more than 900 jobs while Keurig Dr Pepper continues making products there under a new co-manufacturing deal.
How Keurig Dr Pepper Got Its Chobani Stake
Keurig Dr Pepper's Chobani ownership started with a 2023 investment in cold-brew coffee brand La Colombe. When Chobani purchased La Colombe for $900 million, Keurig Dr Pepper converted its La Colombe holdings into Chobani equity, giving it a minority stake in the yogurt company.
Splitting Into Two Publicly Traded Companies
Keurig Dr Pepper is restructuring itself into Beverage Co. and Global Coffee Co., two independent public companies. Selling the Chobani stake and manufacturing plant raises cash to reduce debt ahead of this major split, freeing up money for each new company to invest in growth.
Chobani's Expansion at the Allentown Plant
Chobani will acquire the Allentown manufacturing and warehouse facility for approximately $125 million and plans a $1.2 billion investment over the next five years. Market Screener reports the expansion will create more than 900 new jobs as the company grows its production footprint.
Keurig Dr Pepper won't disappear from the plant entirely. The two companies will continue a co-manufacturing partnership where Keurig Dr Pepper can produce certain products at the facility under a defined agreement, maintaining their operational ties despite the equity sale.
Distribution Deals and Licensing Stay in Place
Even after selling its stake, Keurig Dr Pepper and Chobani plan to keep their commercial relationship alive. The companies will maintain ongoing distribution and licensing agreements for La Colombe products and other Chobani-branded beverages, ensuring both firms can pursue growth while staying connected.
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