Keurig Dr Pepper to Sell Off Chobani Stake Ahead of Split into Beverage Co. and Global Coffee Co. but will Continue to Distribute La Colombe Brand Products – CoffeeTalk

Keurig Dr Pepper (KDP) is selling its complete equity stake in Chobani back to the yogurt company for $800 million, while Chobani will acquire KDP’s manufacturing and warehouse operation in Allentown, PA, for $125 million. KDP plans to utilize the proceeds to reduce debt as part of its strategy to split into two separate entities: Beverage Co. and Global Coffee Co.

Simultaneously, KDP and Chobani are enhancing their long-term commercial relationship by updating and expanding their distribution agreement. KDP will continue to distribute La Colombe-brand ready-to-drink lattes and other Chobani-owned beverage products through its direct-store delivery network, and the two companies will maintain their licensing, manufacturing, and distribution agreement for La Colombe-branded K-Cup pods in the U.S. and Canada.

Chobani will provide employment opportunities to the manufacturing and warehouse staff at the Allentown site, while KDP will retain those in delivery, customer service, and corporate functions. To ensure a seamless transition, Chobani will manufacture certain KDP products at the Allentown facility for a defined time under a co-manufacturing agreement.

KDP CEO Tim Cofer remarked, “These transactions reflect the success of our partnership with Chobani and are designed to create value for both organizations.” He highlighted that the changes will enhance KDP’s financial flexibility, improve the efficiency of its manufacturing network, and support the continued expansion of its distribution partnership with Chobani. Cofer also emphasized that this transition positions the Allentown facility for sustained growth under an owner whose strategic priorities align closely with its operational goals, ensuring stability for the brands, customers, and employees involved.

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