Chobani Bets $1.2 Billion on Pennsylvania Dairy Hub

The investment centers on a facility acquired from Keurig Dr Pepper, which will be repurposed to serve as a high-capacity hub for next-generation food and beverage innovation. Chobani plans to install up to 10 production lines, leveraging the location’s proximity to 40 percent of the U.S. population to streamline distribution. At full capacity, the plant is expected to source more than 3 billion pounds of Pennsylvania milk annually, marking what Governor Josh Shapiro described as the largest private sector investment in the history of the state's agriculture industry.

Beyond the physical infrastructure, the deal deepens a strategic partnership between Chobani and Keurig Dr Pepper. While Chobani assumes control of the Allentown site, the agreement includes the repurchase of KDP’s equity stake in Chobani and an expanded distribution arrangement that utilizes KDP’s delivery network to reach 80 percent of the American market. For employees currently at the site, the transition promises continuity, with Chobani extending job offers to the existing workforce. This Allentown project represents a significant slice of a broader $4 billion capital expenditure plan across Chobani’s U.S. network, which includes ongoing developments in New York, Idaho, and Michigan.