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Keurig Dr Pepper is trimming its portfolio to lighten a heavy financial load. The beverage giant announced Tuesday it will sell its minority stake in Chobani, along with a Pennsylvania warehouse, back to the yogurt maker for a combined $925 million — a move aimed squarely at reducing debt and helping fund spinoffs connected to the company's roughly $18 billion acquisition of JDE Peet's.

Breaking Down the Two-Part Sale

The transaction splits into two distinct pieces. Keurig Dr Pepper will sell its equity stake back to Chobani for $800 million, while separately, Chobani will acquire an Allentown, Pennsylvania, manufacturing facility and warehouse from Keurig Dr Pepper for approximately $125 million — a package that includes the facility's lease, equipment and ongoing operations.

How Keurig Dr Pepper Ended Up With Chobani Stock

The origin story here traces back to December 2023, when Keurig Dr Pepper's existing investment in La Colombe Coffee Roasters was converted into equity in Chobani, as part of Chobani's $900 million acquisition of La Colombe at the time — a corporate domino effect that left Keurig Dr Pepper holding a minority stake in the yogurt company almost as a byproduct of an entirely different deal.

A Manufacturing Relationship That Continues

Even as ownership changes hands, production won't stop immediately. Chobani will continue manufacturing certain products for Keurig Dr Pepper at the Allentown facility for a defined transitional period following the sale, according to Keurig Dr Pepper — ensuring the handoff doesn't create an abrupt supply chain disruption.

Chobani's Big Investment Plans for the Facility

Separately, Chobani revealed plans to pour roughly $1.2 billion into the 1.5-million-square-foot Allentown warehouse over the next five years, with the goal of creating more than 900 jobs and transforming the site into a major manufacturing hub — turning what was previously a Keurig Dr Pepper facility into a cornerstone of Chobani's own expansion strategy.

Timeline for Closing

Both transactions are expected to close during the third quarter of 2026, pending the satisfaction of customary closing conditions typical of deals this size.

The Bigger Picture: JDE Peet's and Corporate Restructuring

This sale doesn't exist in isolation — it follows closely on the heels of Keurig Dr Pepper's completed acquisition of JDE Peet's, a roughly $18 billion transaction that closed in April. As part of that broader deal, Keurig Dr Pepper is planning to spin off its operations into two separately publicly traded U.S. companies.

Where the Chobani Proceeds Are Headed

Keurig Dr Pepper confirmed Tuesday that the proceeds generated from the Chobani sale will be funneled toward two priorities: paying down existing debt and helping finance the company's planned spinoff transactions — positioning this deal as a financial building block supporting the company's much larger corporate restructuring underway.