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Chobani, alongside state and local leaders, announced plans Tuesday to invest about $1.2 billion over the next five years in a world-class, 1.5-million-square-foot manufacturing and warehouse campus in Allentown, creating more than 900 jobs and establishing a major new hub for the company's growth.
As part of an expanded partnership with Keurig Dr Pepper (KDP), Chobani will acquire its Allentown manufacturing facility and warehouse, including its equipment and related infrastructure. First opened for production in 2021, the state-of-the-art facility provides a starting point for Chobani to build on with new equipment, technology and production capabilities.
When fully operational, the facility is expected to process more than three billion pounds of Pennsylvania milk annually -- equivalent to about 30% of all milk currently produced in the commonwealth -- the largest increase in demand for Pennsylvania dairy in the state's history.
"I've spent a lot of time on our farms and in our rural communities, hearing directly from Pennsylvanians about the kind of investments they want to see in our Commonwealth," said Gov. Josh Shapiro. "This $1.2 billion investment from Chobani is the largest private sector investment in the history of Pennsylvania's agriculture industry and will strengthen our dairy industry, support our farmers, and reinforce our position as a national leader in agriculture and food manufacturing."
Pennsylvania is home to more than 4,300 dairy farms and a deep agricultural and manufacturing tradition. Chobani's investment in Allentown will create significant new demand for Pennsylvania milk and its generations of dairy farmers, and strengthen the businesses, suppliers and communities surrounding the dairy industry.
At the Allentown facility, Chobani will build on 20 years of dairy expertise to make more from farm-fresh milk, creating milk with more protein and less sugar than traditional milk. It will be available as a multi-serve milk for families and serve as the foundation for a new generation of dairy products, including high-protein shakes made with real ingredients.
Allentown's location gives the company a major advantage. The facility sits within 500 miles of about 40% of the U.S. population, providing access to some of the country's largest consumer markets and helping Chobani bring its products to families across the country.
With plans for up to 10 production lines, Allentown will give Chobani the capacity to scale these new products while continuing to develop new formats and food and beverage platforms, moving innovation from idea to shelf faster and bringing consumers more great food and more choices.
"When I first walked through this factory, I knew there was something special here. The facility, the equipment, the scale, but most importantly, the people. There's already an incredibly talented team here that knows how to make great food. The foundation is strong. And we have an opportunity to build something extraordinary on top of it," said Hamdi Ulukaya, founder and CEO of Chobani. "Then you look outside and see what surrounds it. Pennsylvania has generations of dairy families producing some of the best milk in America. That means everything to me, it reminds me of Upstate New York, where we started Chobani, and where dairy farmers have been part of our story for more than 20 years."
State Agriculture Secretary Redding said the announcement by Chobani "is the biggest change for our dairy industry in a generation and represents the culmination of a journey built on collaboration, persistence, and a shared belief in the future of Pennsylvania dairy."
The Governor's BusinessPA team worked with Chobani to build out the agricultural and public infrastructure necessary for a project of this scale.
To support Chobani's investment in Pennsylvania, the commonwealth will provide $50 million in loans and grants through the Pennsylvania Strategic Investments to Enhance Sites (PA SITES) Program to support infrastructure and site improvements necessary for the project and broader regional economic development.
Additionally, the Commonwealth will continue to drive out $127 million in loans and grants available directly to eligible Pennsylvania dairy farmers to meet the significant new demand for Pennsylvania milk products.
Chobani may also be able to access tax credits through the Department of Revenue's Pennsylvania Economic Development for a Growing Economy (PA EDGE) program's Pennsylvania Milk Processing (PMP) Tax Credit in the future.