Keurig Dr Pepper to exit Chobani stake, raise $925M
Rhea-AI Filing Summary
Keurig Dr Pepper Inc. (KDP) announced that subsidiary Mott’s LLP and affiliates agreed with FHU US Holdings, LLC and its affiliates (Chobani) to exit KDP’s minority investment in Chobani and sell certain assets. KDP will redeem all of its indirect equity interests in Chobani for $800 million, consisting of $400 million in cash at closing and a $400 million promissory note from Chobani maturing on December 26, 2026.
In a related transaction, Chobani will acquire KDP’s manufacturing facility and warehouse, including leasehold interests, equipment and operations, in Allentown, Pennsylvania for approximately $125 million, bringing total pre-tax proceeds to about $925 million. KDP intends to use the net proceeds to reduce debt, supporting its deleveraging goals as it positions its Beverage Co. and Global Coffee Co. businesses. The companies also plan to expand their long-term commercial relationship, including an updated distribution agreement and a co-manufacturing arrangement for certain KDP products. The transactions are expected to close in the third quarter of 2026, subject to customary closing conditions.
Positive
- Keurig Dr Pepper expects approximately $925 million in pre-tax proceeds, which it intends to use to reduce debt and support deleveraging goals.
- Exiting the Chobani equity stake for $800 million while expanding long-term commercial and distribution agreements may simplify KDP’s portfolio while preserving strategic collaboration.
Negative
- Completion of the Chobani transactions is subject to customary closing conditions, and KDP warns of risks that the deals may not close in the anticipated timeframe, or at all.
- KDP highlights potential risks around the transition of the Allentown facility, including co-manufacturing arrangements, continuity for brands and customers, and the possibility of negative impacts on business relationships.
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Equity stake consideration: $800 million
Cash at closing: $400 million
Promissory note: $400 million
+4 more
7 metrics
Equity stake consideration
$800 million
Aggregate consideration for redemption of KDP’s indirect equity interests in Chobani
Cash at closing
$400 million
Cash portion of consideration for Chobani equity stake
Promissory note
$400 million
Note issued by Chobani to a KDP subsidiary, maturing December 26, 2026
Allentown facility sale price
$125 million
Approximate consideration for KDP’s Allentown, Pennsylvania facility and warehouse
Total pre-tax proceeds
$925 million
Combined proceeds from sale of Chobani stake and Allentown facility
Promissory note maturity date
December 26, 2026
Maturity of the $400 million promissory note from Chobani
Expected closing period
Third quarter of 2026
Anticipated closing timeframe for the transactions, subject to conditions
Key Terms
co-manufacturing agreement, direct store delivery (DSD) network, deleveraging, forward-looking statements, +1 more
5 terms
co-manufacturing agreement financial
"under a co-manufacturing agreement."
A co-manufacturing agreement is a contract where two or more companies share responsibility for producing a product, with one or both parties supplying facilities, labor or materials to make and deliver the item. For investors it signals how a company manages production capacity, costs, quality control and supply risk—much like two bakeries agreeing to share oven time to meet demand faster and reduce the cost of running separate kitchens.
direct store delivery (DSD) network financial
"through its direct store delivery (DSD) network"
deleveraging financial
"expected proceeds, deleveraging and enhanced financial flexibility"
Deleveraging is the process of a company reducing the amount of debt it carries relative to its assets or equity, either by paying down loans, selling assets, or raising fresh equity. For investors it matters because lower debt typically means less financial risk and steadier cash flow—like removing weight from a backpack to make a hike safer and easier—while it can also slow growth if borrowing had been funding expansion.
forward-looking statements regulatory
"Certain statements contained herein are “forward-looking statements”"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
customary closing conditions financial
"subject to the satisfaction of customary closing conditions"
"Customary closing conditions" are standard rules or checks that must be met before a business deal can be finalized, like making sure all paperwork is in order or that certain approvals are obtained. They matter because they help protect both parties, ensuring everything is in place and reducing the risk of surprises or problems after the deal is closed.
FAQ
What transactions did KDP (NASDAQ: KDP) announce with Chobani?
KDP agreed to redeem its full equity stake in Chobani for $800 million and sell its Allentown, Pennsylvania manufacturing facility and warehouse to Chobani for approximately $125 million, for total pre-tax proceeds of about $925 million.
How will Keurig Dr Pepper use the $925 million of proceeds from the Chobani deals?
Keurig Dr Pepper intends to use the net proceeds from the approximately $925 million of pre-tax proceeds to reduce debt, supporting its deleveraging goals as it positions its Beverage Co. and Global Coffee Co. businesses for long-term success.
What is the structure of the $800 million consideration for KDP’s Chobani equity stake?
The $800 million for KDP’s equity stake in Chobani consists of $400 million in cash at closing and a $400 million promissory note issued by Chobani to a KDP subsidiary, which matures on December 26, 2026.
What is happening to KDP’s Allentown, Pennsylvania facility in the Chobani transaction?
Chobani will acquire KDP’s Allentown, Pennsylvania manufacturing facility and warehouse for approximately $125 million, including the facility lease, equipment and operations, and will continue to manufacture certain KDP products there under a co-manufacturing agreement for a defined period.
How will the KDP–Chobani commercial relationship change after these transactions?
KDP and Chobani are expanding their commercial relationship by updating and broadening their distribution agreement, with KDP continuing to distribute La Colombe RTD lattes and other Chobani-owned beverage products via its DSD network and continuing the La Colombe K-Cup licensing and distribution deals.
When are the Keurig Dr Pepper and Chobani transactions expected to close?
The transactions between Keurig Dr Pepper and Chobani are currently expected to close in the third quarter of 2026, subject to the satisfaction of customary closing conditions.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 28, 2026
(Exact name of Registrant as specified in its charter)
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(Address of principal executive offices, including zip code)
(800 ) 527-7096
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Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Item 8.01. Other Events.
On August 28, 2026, Mott’s LLP, a Delaware limited liability partnership and a wholly-owned subsidiary of Keurig Dr Pepper Inc., a Delaware corporation (the “Company”) and certain other affiliates of the Company, entered into definitive agreements with FHU US Holdings, LLC, a Delaware limited liability company and certain of its affiliates (collectively, “Chobani”), providing for (i) the redemption of all of the Company’s indirect equity interests in Chobani for aggregate consideration of $800 million, consisting of (x) $400 million in cash payable at the closing of the transactions and (y) the issuance of a $400 million promissory note by Chobani to a subsidiary of the Company, which matures on December 26, 2026 and (ii) the sale of certain assets, including the Company’s leasehold interests in two facilities located in Allentown, Pennsylvania, for $125 million. The transactions are currently expected to close in the third quarter of 2026, subject to the satisfaction of customary closing conditions.
A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
Forward Looking Statements
This Current Report on Form 8-K contains “forward-looking statements” within the meaning of applicable securities laws and regulations. These forward-looking statements include those preceded by, followed by or that include words such as “outlook,” “guidance,” “anticipate,” “enable,” “expect,” “believe,” “could,” “confident,” “estimate,” “feel,” “continue,” “ongoing,” “forecast,” “intend,” “may,” “on track,” “plan,” “positioned,” “potential,” “project,” “should,” “target,” “will,” “would” and similar words, phrases, or expressions and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These statements are based on the current expectations of our management, are not predictions of actual performance, and actual results may differ materially. Forward-looking statements are subject to a number of risks and uncertainties, including the factors disclosed in our Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Our actual results could differ materially from the projections in the forward-looking statements due to a variety of factors, including, but not limited to, (i) the inherent uncertainty of estimates, forecasts and projections, (ii) global economic uncertainty or economic downturns, (iii) risks related to the completion of the transactions with Chobani in the anticipated timeframe, or at all, and the satisfaction of customary closing conditions, (iv) the possibility that the anticipated benefits of the transactions, including the expected proceeds, deleveraging and enhanced financial flexibility, are not realized, (v) risks related to the transition of the Allentown, Pennsylvania facility, including the related co-manufacturing arrangement and continuity for our brands, customers, consumers and employees, (vi) risks related to the expanded commercial and distribution relationship with Chobani, (vii) the possibility of negative impacts on our business relationships in connection with the transactions, and (viii) the risk of potential litigation. We are under no obligation to update, modify or withdraw any forward-looking statements, except as required by applicable law.
Item 9.01. Financial Statements and Exhibits.
| Exhibit No. | Description | |||||||
99.1 | Press Release, issued September 1, 2026 | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KEURIG DR PEPPER INC. | ||||||||||||||
| Date: September 1, 2026 | ||||||||||||||
| By: | /s/ Anthony Shoemaker | |||||||||||||
| Name: | Anthony Shoemaker | |||||||||||||
| Title: | Chief Legal Officer, General Counsel and Secretary | |||||||||||||
EXHIBIT 99.1
Keurig Dr Pepper Advances Strategic Priorities Through Enhanced Partnership with Chobani
Selling minority investment in Chobani and Pennsylvania facility for $925 million in pre-tax proceeds
Proceeds to support Keurig Dr Pepper’s deleveraging goals
Updating and expanding long-term commercial relationship with Chobani
BURLINGTON, Mass. and FRISCO, Texas – September 1, 2026 – Keurig Dr Pepper Inc. (NASDAQ: KDP) and Chobani today announced a series of transactions that further strengthen their longstanding strategic partnership while advancing the growth and capital allocation priorities of both companies.
As part of the agreement, KDP will sell its full equity stake in Chobani back to the company for $800 million.
In a related transaction, Chobani will acquire KDP's manufacturing facility and warehouse in Allentown, Pennsylvania for approximately $125 million, including the facility lease, equipment and operations. Chobani intends to offer employment opportunities to the site's manufacturing and warehouse employees, recognizing the value of the trained workforce and helping ensure operational continuity. Employees in delivery, customer service and other corporate functions will remain with KDP. To facilitate a seamless transition, Chobani will continue to manufacture certain products for KDP at the Allentown facility for a defined period after the sale under a co-manufacturing agreement.
KDP intends to use the net proceeds from the transactions to reduce debt as it positions its two future businesses, Beverage Co. and Global Coffee Co., for long-term success.
Additionally, the companies are expanding their long-term commercial relationship by updating and broadening their distribution agreement, with KDP continuing to distribute the La Colombe brand’s ready-to-drink (RTD) lattes and other Chobani-owned beverage products through its direct store delivery (DSD) network, including future RTD innovations. The companies will also continue their long-term licensing, manufacturing and distribution agreement for La Colombe-branded K-Cup® pods in the U.S. and Canada.
“These transactions reflect the success of our partnership with Chobani and are designed to create value for both organizations," said Tim Cofer, CEO at Keurig Dr Pepper. "Together, they enhance our financial flexibility, strengthen the efficiency of our manufacturing network and support the expansion of our important distribution partnership with Chobani. This change also positions the Allentown facility for continued growth under an owner whose strategic priorities are well matched to the site, while ensuring continuity for our brands, customers and employees.”
“Our partnership with KDP started with La Colombe back in 2023, and it grew when La Colombe became part of Chobani,” said Hamdi Ulukaya, Founder & CEO of Chobani. “With this deal, the plant will be used to its full potential, create value and opportunity for both companies, and bring some of our best innovation to more people through KDP’s reach and capabilities. And most importantly, it means more jobs and more opportunity for Pennsylvania farmers.”
The transactions are expected to close in the third quarter of 2026, subject to the satisfaction of customary closing conditions.
About Keurig Dr Pepper
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company with more than 150 owned, licensed and partner brands that meet a wide range of needs and occasions. Our North American refreshment beverage business holds leadership positions across carbonated soft drinks, water, juice and mixers with a portfolio of iconic brands such as Dr Pepper®, Canada Dry®, Mott’s®, A&W®, Peñafiel®, GHOST®, 7UP®, Snapple®, Clamato® and Core Hydration®. Our global coffee business spans more than 100 markets and includes the leading Keurig® single‑serve brewing system in the U.S. and Canada, along with powerhouse brands such as Peet’s, L’OR and Jacobs, and other regional coffee leaders. Our more than 50,000 employees aim to enhance the experience of every beverage and coffee occasion while making a positive impact for people, communities and the planet. Learn more at www.keurigdrpepper.com and follow us@KeurigDrPepper on LinkedIn and Instagram.
EXHIBIT 99.1
Forward Looking Statements
Certain statements contained herein are “forward-looking statements” within the meaning of applicable securities laws and regulations. These forward-looking statements include those preceded by, followed by or that include words such as “outlook,” “guidance,” “anticipate,” “enable,” “expect,” “believe,” “could,” “confident,” “estimate,” “feel,” “continue,” “ongoing,” “forecast,” “intend,” “may,” “on track,” “plan,” “positioned,” “potential,” “project,” “should,” “target,” “will,” “would” and similar words, phrases, or expressions and variations or negatives of these words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These statements are based on the current expectations of our management, are not predictions of actual performance, and actual results may differ materially. Forward-looking statements are subject to a number of risks and uncertainties, including the factors disclosed in our Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Our actual results could differ materially from the projections in the forward-looking statements due to a variety of factors, including, but not limited to, (i) the inherent uncertainty of estimates, forecasts and projections, (ii) global economic uncertainty or economic downturns, (iii) risks related to the completion of the transactions with Chobani in the anticipated timeframe, or at all, and the satisfaction of customary closing conditions, (iv) the possibility that the anticipated benefits of the transactions, including the expected proceeds, deleveraging and enhanced financial flexibility, are not realized, (v) risks related to the transition of the Allentown, Pennsylvania facility, including the related co-manufacturing arrangement and continuity for our brands, customers, consumers and employees, (vi) risks related to the expanded commercial and distribution relationship with Chobani, (vii) the possibility of negative impacts on our business relationships in connection with the transactions, and (viii) the risk of potential litigation. We are under no obligation to update, modify or withdraw any forward-looking statements, except as required by applicable law.
Investor Contact:
Investor Relations
T: 888-340-5287 / IR@kdrp.com
Investor Relations
T: 888-340-5287 / IR@kdrp.com
Media Contact:
Katie Gilroy
T: 781-418-3345 / katie.gilroy@kdrp.com
Katie Gilroy
T: 781-418-3345 / katie.gilroy@kdrp.com