Pennsylvania Gov. Josh Shapiro and other state officials announced Tuesday that yogurt maker Chobani plans to invest $1.2 billion establish its first dairy manufacturing operation in the state.
The announcement coincides with a deal that will see Keurig Dr Pepper sell its full equity stake in Chobani back to the company for $800 million. Chobani will also acquire KDP's manufacturing facility and warehouse in Allentown, Pennsylvania, for approximately $125 million.
The project — which officials called the largest-ever private investment in Pennsylvania’s agriculture industry — is expected to create 900 full-time jobs over the next five years, along with opportunities more than 4,000 dairy farmers in the state.
Chobani will assume operations of KDP's 1.5 million-square-foot manufacturing facility, equipment and related infrastructure, where the company said it plans to manufacture "innovative food products beyond yogurt."
When fully operational, the facility is expected to process more than 3 billion pounds of Pennsylvania milk annually — equivalent to approximately 30% of all milk currently produced in the commonwealth and the largest increase in demand for Pennsylvania dairy in the state’s history.
The company is set t $50 million in state loans and grants to support the project, including funding for infrastructure and site improvements.
Officials said production is expected to begin in 2027.
