Chobani Invests $1.2 Billion to Expand High-Protein Milk

Chobani LLC will invest $1.2 billion over five years to enter the high-protein milk market, centered on the acquisition of a 1.5 million-square-foot production plant and warehouse in Allentown, Pennsylvania. The expansion includes a $125 million purchase of the facility and an $800 million buyback of an equity stake Keurig Dr Pepper Inc. held in the company.

To facilitate this shift toward milk products with higher protein and lower sugar, Chobani is ending production of its oat milk. The company plans to launch its new high-protein line in the summer of 2027, utilizing up to 10 production lines and approximately 30% of Pennsylvania's annual milk production. The transactions are expected to close in the third quarter of 2026.

Keurig Dr Pepper is divesting these assets following its $18 billion acquisition of JDE Peet’s in April. The beverage company intends to use the proceeds to reduce debt as it prepares to separate its coffee and cold drinks operations into two distinct public companies.