Yogurt giant acquires Keurig Dr Pepper plant in Allentown to process 3 billion pounds of milk annually into ultra-filtered, high-protein dairy lines.
Chobani has announced a landmark $1.2 billion investment over the next five years to establish a massive manufacturing and distribution hub in Allentown, Pennsylvania. The project—representing the single largest private-sector agricultural investment in the Commonwealth’s history—centers on the acquisition and overhaul of an existing 1.5-million-square-foot facility from Keurig Dr Pepper (KDP) in Upper Macungie Township, which will generate more than 900 on-site manufacturing jobs.
At full operational scale, the Lehigh Valley processing plant is projected to procure more than 3 billion pounds of farm-fresh Pennsylvania milk annually. This intake volume represents approximately 30 percent of the state’s total annual milk production, delivering an unprecedented structural boost in raw milk demand across the Commonwealth’s 4,300 family-operated dairy farms and revitalizing regional rural economies.
Chobani plans to install up to 10 processing lines to manufacture next-generation, value-added dairy platforms, notably high-protein, reduced-sugar fluid milk and functional ready-to-drink protein shakes scheduled to debut by mid-2027. The Allentown location positions Chobani within 500 miles of roughly 40 percent of the U.S. population, enabling rapid cold-chain fulfillment to major consumer hubs across the eastern seaboard.
The project is backed by state-level development incentives coordinated under Governor Josh Shapiro’s administration. Pennsylvania is deploying $50 million in loans and grants via the PA SITES program to upgrade regional wastewater and site infrastructure, alongside fast-track permitting and future eligibility for Pennsylvania Milk Processing (PMP) tax credits. To help primary producers expand supply, the state is also making up to $127 million in targeted grants and financing available directly to dairy farmers.
The Pennsylvania expansion comes as Chobani logs roughly 20 percent annual revenue growth over the past three years, with corporate sales projected to reach $4.6 billion. Alongside recent large-scale capital projects in Twin Falls, Idaho, and Rome, New York, the Allentown acquisition reinforces Chobani’s long-term pivot toward functional nutrition and high-protein dairy beverages that command higher margins than traditional fluid milk.
Source: Allied News
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