Keurig Dr Pepper to divest Chobani stake and Pennsylvania facility for $925 million

Keurig Dr Pepper disclosed it will sell its minority stake in yogurt maker Chobani, along with a Pennsylvania production facility, back to Chobani for a combined $925 million, the companies said on September 1, 2026. The deal splits into an $800 million price for KDP's Chobani equity stake and $125 million for its manufacturing facility and warehouse in Allentown, Pennsylvania.

The sale unwinds a position KDP built indirectly: it took a roughly 33% stake in coffee brand La Colombe in 2023, and Chobani acquired La Colombe outright a few months later for about $900 million, which is how KDP ended up holding Chobani equity. Under the new agreement, Chobani plans to invest about $1.2 billion over the next five years to expand the Allentown facility, and KDP will keep distributing La Colombe's ready-to-drink lattes and other Chobani-owned beverage products through its direct-store-delivery network, alongside their existing K-Cup licensing agreement for La Colombe pods.

KDP said it will use the net proceeds to pay down debt as it prepares to split into two separately traded companies, Beverage Co. and Global Coffee Co., a restructuring that follows KDP's roughly $18 billion acquisition of JDE Peet's in April 2026. The Chobani and Pennsylvania-facility transactions are expected to close in the third quarter of 2026, ahead of the corporate split targeted for early 2027. KDP CEO Tim Cofer said the transactions "reflect the success of our partnership with Chobani and are designed to create value for both organizations."

Wall Street's existing read on KDP skews positive heading into the split: SentiSense tracks a 17-analyst consensus rating of Buy on the stock, with an average price target of $36.21 against a live price near $32, implying meaningful upside if the separation executes as planned. The more interesting open question for investors may be less the Chobani divestiture itself, a small transaction relative to KDP's balance sheet, and more whether debt paydown ahead of the split leaves each resulting company appropriately capitalized once it starts trading on its own.

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