Keurig Dr Pepper to invest US$220m in developing a new facility in Pennsylvania

USA – Keurig Dr Pepper (KDP) will be investing about US$220 million to build a new production and warehouse facility in Allentown, Pennsylvania.

KDP, formed with the 2018 merger of Keurig Green Mountain and Dr. Pepper Snapple Group, said that the new ‘state-of-the-art’ facility will expand its production capacity for new and existing brands across all beverage categories.

The new warehouse will also help the company to “optimize its logistics footprint in the North east” by providing ‘large-scale’ warehouse operations in the region. The investment is expected to create about 400 jobs.

Fernando Cortes, chief supply chain officer at Keurig Dr Pepper, said: “Keurig Dr Pepper is focused on building an integrated, best-in-class manufacturing network that supports the production of all beverages in all categories.

“Our new facility in Allentown and additional supply chain investments in existing facilities support our vision for providing a beverage for every consumer.

“We are excited to become part of the Allentown community as we continue to invest in new and exciting opportunities for growth.”

Pennsylvania governor Tom Wolf welcomed the investment saying that KDP is “the right company to utilise this site, and we are proud that Keurig Dr Pepper has agreed to expand its operations and create new jobs in the commonwealth.

The office of the governor has pledged to give the company a US$1.5 million Pennsylvania First grant, US$170,100 in WEBnetPA money for worker training and, when new jobs are created, US$1.1 million in Job Creation Tax Credits.

The Lehigh Valley Economic Development Corp also welcomed Keurig Dr Pepper into “the large cluster of national food, beverage, and pet food producers that call the Lehigh Valley home,” according to a statement from President and CEO Don Cunningham.

Keurig Dr Pepper joins national beverage companies including Boston Beer Co., Ocean Spray and Coca-Cola that have manufacturing facilities in region.

The company, which has dual headquarters in Massachusetts and Texas, is the seventh-largest company in the US food and beverage sector and the third-largest beverage company in North America, with annual revenues of approximately US$11bn.

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