Pennsylvania Governor Josh Shapiro and other state officials said they have secured a $1.2 billion investment from Chobani to establish its first dairy product manufacturing operation in Pennsylvania.
The announcement coincides with a deal that will see Keurig Dr Pepper sell its full equity stake in Chobani back to the company for $800 million. Chobani will also acquire KDP's manufacturing facility and warehouse in Allentown, Pennsylvania for approximately $125 million
The project — which is being called the largest ever private investment in Pennsylvania’s agriculture industry — is expected to create 900 full-time jobs over the next five years along with opportunities more than 4,000 dairy farmers in Pennsylvania.
Chobani will assume operations of KDP's 1.5 million-square-foot manufacturing facility, equipment, and related infrastructure, where the company said it plans to manufacture "innovative food products beyond yogurt."
When fully operational, the facility is expected to process more than three billion pounds of Pennsylvania milk annually — equivalent to approximately 30 percent of all milk currently produced in the Commonwealth — the largest increase in demand for Pennsylvania dairy in the state’s history.
To support Chobani’s investment in Pennsylvania, the Commonwealth will provide $50 million in loans and grants through the Pennsylvania Strategic Investments to Enhance Sites (PA SITES) Program to support infrastructure and site improvements necessary for the project and broader regional economic development.
Production under Chobani is expected to begin in 2027.
