Chobani, founded and led by CEO Hamdi Ulukaya, has decided to establish a facility in Allentown, Pennsylvania, that will produce next-generation food and beverage products with an investment of approximately $1.2 billion. Under the project the company plans to implement over the next five years, the existing facility to be acquired from Keurig Dr Pepper (KDP) will be expanded and transformed into a strategic production and logistics hub.<\/p>\n
The facility, which will span approximately 140,000 square meters, is expected to create more than 900 jobs. Chobani notes that the location offers a significant advantage in accessing major consumer markets, as it sits within an 800-kilometer radius of roughly 40 percent of the U.S. population.<\/p>\n
Partnership with KDP Deepens<\/p>\n
The agreement extends beyond the facility transfer alone. Chobani will take over KDP’s production facility in Allentown, including storage areas, equipment, and infrastructure, for $125 million. In addition, KDP’s stake in Chobani will be repurchased, and the distribution partnership between the two companies will be expanded. The facility, which first became operational in 2021, is slated for capacity expansion and the installation of 10 separate production lines.<\/p>\n
KDP’s direct store delivery network, which reaches approximately 80 percent of the U.S. population, will play a critical role in bringing Chobani products to a broader consumer base. A portion of the facility’s existing employees will remain with KDP, while others will be offered the opportunity to transition to Chobani. This approach is intended to ensure uninterrupted employment.<\/p>\n
Pennsylvania Milk at the Center<\/p>\n
Chobani reportedly plans to develop new dairy products at the Allentown facility that contain higher protein and lower sugar compared to traditional milk. These products will be used in new innovations, including high-protein shakes.<\/p>\n
Pennsylvania is home to more than 4,300 dairy farms. Once the facility reaches full capacity, it aims to source over 1.36 billion liters (3 billion pounds) of milk annually from the region. This will create a significant market for local dairy producers.<\/p>\n
In his assessment of the investment, Hamdi Ulukaya highlighted the potential he saw when he first visited the facility. “When I first stepped into this facility, I saw something truly special. The facility and equipment were fantastic. There was already an incredibly talented team that knew how to produce quality food. And when you look around, you see Pennsylvania’s storied dairy farms that have been producing some of the best milk in America for generations. That means everything to me\u2014because it reminds me of upstate New York, where we started Chobani and where our farmers have been part of our story for more than 20 years,” he said.<\/p>\n
Keurig Dr Pepper CEO Tim Cofer emphasized that the agreement was designed to add value to both parties. “These transactions reflect the success of our partnership with Chobani and are designed to add value to both organizations. They strengthen the efficiency of our manufacturing network while enhancing our financial flexibility and growing our distribution partnership,” he said.<\/p>\n
Growth Momentum Continues<\/p>\n
The Allentown investment is part of Chobani’s expansion program exceeding $4 billion across its U.S. production network. The company reported annual growth of 20 percent over the past three years, and in 2025 it spent $500 million to expand its Twin Falls facility in Idaho and $1.2 billion on its food production facility in Rome, New York.<\/p>\n
John Frost, Chobani’s chief customer officer, said last November that all business segments were growing rapidly, noting that shifts in consumer behavior aligned with the position the company has occupied for nearly two decades.<\/p>\n
The New York-based company, known for its Greek yogurt, has a portfolio that also includes creamers, La Colombe coffee, and plant-based food maker Daily Harvest. The strategy focused on low-sugar, clean-label, and protein-rich products stands out as a key driver of the company’s growth as consumers gravitate toward convenient and nutritious foods.<\/p>\n","protected":false},"excerpt":{"rendered":"Chobani, founded and led by CEO Hamdi Ulukaya, has decided to establish a facility in Allentown, Pennsylvania, that…\n","protected":false},"author":2,"featured_media":277751,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[119,121,120,115948,116338,115949,28,116339],"class_list":["post-277750","post","type-post","status-publish","format-standard","has-post-thumbnail","category-allentown","tag-allentown","tag-allentown-headlines","tag-allentown-news","tag-chobani","tag-hamdi-ulukaya","tag-keurig-dr-pepper","tag-pennsylvania","tag-tim-cofer"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/277750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/comments?post=277750"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/277750\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media\/277751"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media?parent=277750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/categories?post=277750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/tags?post=277750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}