Chobani announced plans to invest approximately $1.2 billion over the next five years in a world-class, 1.5-million-sq-ft manufacturing and warehouse campus in Allentown, Penn., creating more than 900 jobs and establishing a major new hub for the company’s growth.
As part of an expanded partnership with Keurig Dr Pepper (KDP), Chobani will acquire its Allentown manufacturing facility and warehouse, including its equipment and related infrastructure. First opened for production in 2021, the state-of-the-art facility provides a great starting point for Chobani to build on with new equipment, technology and production capabilities.
Chobani has grown approximately 20 percent annually over the past three years, giving the company confidence to continue investing in its future. In Allentown, Chobani will build on 20 years of dairy expertise to make more from farm-fresh milk, creating milk with more protein and less sugar than traditional milk. It will be available as a multi-serve milk for families and serve as the foundation for a new generation of dairy products, including high-protein shakes made with real ingredients.
Allentown’s location provides another major advantage. The facility sits within 500 miles of approximately 40 percent of the US population, providing access to some of the country’s largest consumer markets and helping Chobani reliably bring its products to families across the country.
With plans for up to 10 production lines, Allentown will give Chobani the capacity to scale these new products while continuing to develop new formats and food and beverage platforms, moving innovation from idea to shelf faster and bringing consumers more great food and more choices.
Pennsylvania is home to more than 4,300 dairy farms and a deep agricultural and manufacturing tradition. Chobani’s investment in Allentown will create significant new demand for Pennsylvania milk and its generations of dairy farmers, and strengthen the businesses, suppliers and communities surrounding the dairy industry. It is a tradition Chobani knows well from nearly two decades of growing alongside dairy farmers in Upstate New York.
At full capacity, the Allentown facility is expected to source more than 3 billion pounds of Pennsylvania milk annually.
The Allentown transaction is also part of a broader strengthening of the relationship between Chobani and KDP, including Chobani taking over operations at the Allentown facility, the repurchase of KDP’s equity stake in Chobani, and an expanded distribution partnership. KDP’s company-owned direct store delivery network reaches approximately 80 percent of the US population, creating significant opportunities to bring Chobani products to more consumers across the country.
KDP will retain some current employees at the facility, while all others will receive offers to join Chobani, providing continuity for employees and their families.
Allentown is part of more than $4 billion Chobani is investing across its US manufacturing network to build the capacity and capabilities needed for its next chapter of growth.
Alongside Allentown, Chobani is investing in a new dairy processing facility in Rome, New York; expanding its manufacturing operation in Twin Falls, Idaho; improving its original site in New Berlin, NY; and expanding its Norton Shores, Mich., facility, which produces La Colombe beverages.
Together, these projects give Chobani a manufacturing network built for greater flexibility, speed and resilience, while creating jobs and strengthening the agricultural and manufacturing communities across the country that have helped the company grow.
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