Keurig Dr Pepper to Sell Chobani Stake for $925 Million
The beverage company will use net proceeds to reduce debt as it positions Beverage Co. and Global Coffee Co. for long-term success.
Keurig Dr Pepper Inc. (KDP) agreed to sell its full equity stake in Chobani back to the yogurt maker for $800 million and to sell its Allentown, Pennsylvania, manufacturing facility and warehouse for approximately $125 million, for $925 million in pre-tax proceeds.
The asset-purchase transactions are expected to close in the third quarter of 2026, subject to customary closing conditions. The company said it will use net proceeds to reduce debt as it positions Beverage Co. and Global Coffee Co. for long-term success.
Chief Executive Officer Tim Cofer said the deals “reflect the success of our partnership with Chobani and are designed to create value for both organizations.” He added that together they “enhance our financial flexibility, strengthen the efficiency of our manufacturing network and support the expansion of our important distribution partnership with Chobani.”
The Chobani sale sits inside a larger transformation. In August 2025, KDP agreed to acquire JDE Peet’s in an all-cash deal and subsequently separate into two independent companies: a North American refreshment beverage player and a global coffee champion. The JDE Peet’s acquisition closed on April 1, 2026, when KDP acquired 96.22% of the coffee company’s shares.
Financing for the JDE Peet’s deal included about $9 billion of long-term debt, $8.5 billion of equity capital, and the assumption of about $5 billion of JDE Peet’s bonds, with projected combined net leverage of about 4.5 times. A $4.5 billion convertible preferred investment in Beverage Co., co-led by Apollo and KKR, was upsized from $3 billion. A $4 billion Pod Manufacturing JV, also co-led by Apollo and KKR, was finalized.
In the first quarter of 2026, KDP reported net sales of $3.98 billion, up 9.4% from a year earlier, and said the year was off to a good start, with strong momentum in cold beverages and coffee results that tracked with expectations. The company reaffirmed its 2026 constant-currency net sales and adjusted EPS outlook.
Cofer said the JDE Peet’s close achieved a significant milestone in the transformation agenda and united complementary organizations under a shared vision for global coffee leadership. With the Chobani stake and the Allentown plant now slated to leave the combined company, KDP will continue the integration of the coffee business and stand up the two pure-play companies.