Chobani is investing approximately $1.2 billion over the next five years to transform a 1.5-million-sq-ft manufacturing and warehouse campus in Allentown, Pa., into a major production and innovation hub for its growing food and beverage portfolio. The investment is expected to create more than 900 jobs and significantly increase demand for Pennsylvania-produced milk.
The expansion follows Chobani's acquisition of Keurig Dr Pepper's Allentown manufacturing facility, warehouse, equipment, and related infrastructure as part of a broader agreement between the two companies. The facility, which first began production in 2021, will serve as the foundation for Chobani's next phase of manufacturing growth.
Chobani plans to install up to 10 production lines at the site to manufacture a new generation of dairy products made from milk with higher protein and lower sugar than traditional milk. The facility will produce multi-serve milk products and high-protein dairy shakes while providing additional capacity for future food and beverage innovations.
The location offers access to major consumer markets, with approximately 40% of the U.S. population located within 500 miles of the facility. At full production, the plant is expected to source more than 3 billion pounds of Pennsylvania milk annually.
"When I first walked through this factory, I knew there was something special here," says Hamdi Ulukaya, Founder and CEO of Chobani. "The facility, the equipment, the scale, but most importantly, the people. There's already an incredibly talented team here that knows how to make great food. The foundation is strong. And we have an opportunity to build something extraordinary on top of it."
The Allentown project is part of more than $4 billion Chobani is investing across its U.S. manufacturing network. The company is also constructing a new dairy processing facility in Rome, N.Y., expanding operations in Twin Falls, Idaho, upgrading its original New Berlin, N.Y., plant, and expanding its Norton Shores, Mich., facility that produces La Colombe beverages.
The transaction also expands Chobani's commercial relationship with Keurig Dr Pepper. While Chobani will assume manufacturing operations in Allentown, Keurig Dr Pepper will continue distributing La Colombe ready-to-drink beverages and other Chobani-owned beverage products through its direct-store-delivery network under an expanded distribution agreement.
