Chobani will spend $1.2 billion to purchase and expand a facility in Allentown, Pennsylvania, a move the company says will create more than 900 jobs and establish a “major new hub” for its growth. The announcement matters because it signals that the New York-based food maker, best known for Greek yogurt, expects the consumer shift toward high-protein, low-sugar foods to continue. Chobani said it has logged 20% annual growth during the past three years, giving it confidence to keep investing in U.S. production capacity rather than slowing capital spending.
The Allentown plant opened in 2021 and is being acquired from Keurig Dr Pepper for $125 million. The remaining outlay within the $1.2 billion total will go toward expansion and conversion. Chobani said the facility will be used to produce milk with more protein and less sugar than traditional milk, and that the milk will be used in new innovations including high-protein shakes. The company plans to have up to 10 production lines in Allentown, enabling it to scale existing products while continuing to develop new food and beverage offerings. Over the next five years, Chobani said its investment would result in a campus with 1.5 million square feet of manufacturing and warehouse space. At full capacity, the facility is expected to source more than 3 billion pounds of Pennsylvania milk annually.
The evidence comes from a single Construction Dive report based on a company release and statements. The report places the Allentown deal within a broader manufacturing push: Chobani announced in 2025 that it would invest $500 million to expand its facility in Twin Falls, Idaho, and spent $1.2 billion on a food manufacturing plant in Rome, New York. The Allentown facility is part of a more than $4 billion investment Chobani is making across its U.S. manufacturing network. Chobani also highlighted the site's location, noting that it sits within 500 miles of approximately 40% of the U.S. population, providing access to some of the country's largest consumer markets and helping the company more reliably supply products to consumers.
The transaction has direct implications for Chobani's relationship with Keurig Dr Pepper. The plant purchase was announced on the same day the two companies disclosed changes to their partnership. Keurig Dr Pepper is selling its minority stake in Chobani back to the yogurt maker for $800 million in order to pay down debt ahead of its upcoming split early next year. Keurig Dr Pepper will continue to distribute La Colombe's ready-to-drink lattes and other Chobani-owned beverage products. Chobani will also manufacture some products for Keurig Dr Pepper from the Allentown plant for a certain period of time. For Chobani, the deal deepens vertical integration in dairy processing and beverage production at a moment when its portfolio extends beyond yogurt to include creamers, La Colombe coffee, and plant-based food maker Daily Harvest.
The available reporting leaves several questions open. The dossier does not specify the timeline for conversion, the financing structure of the $1.2 billion commitment, or the expected capacity utilization ramp. It also does not provide independent confirmation of the 20% annual growth figure beyond Chobani's own statement. What to watch is whether the Allentown campus reaches the stated 1.5 million square feet and 10 production lines on schedule, and whether the Keurig Dr Pepper manufacturing arrangement creates any operational dependencies during the transition period.