Keurig Dr Pepper New Beverage Production Facility, Allentown, Pennsylvania

Keurig Dr Pepper (KDP) unveiled its plans to build a new beverage production and warehouse facility in Allentown, Pennsylvania, US, in September 2019.

The facility is being developed with an investment of $219.7m and will generate up to 400 jobs in the area.

The new facility will create a manufacturing network that supports the production of multiple items from KDP’s brand portfolio.

Keurig Dr Pepper facility location

KDP’s new facility will be located at 7352 Industrial Boulevard in Allentown, Pennsylvania, US.

The facility will be a class A, rail-accessible logistics campus in the Upper Macungie Township of Lehigh Valley, Allentown.

The site is accessible via route 100 / I-78, connecting major transportation routes in the Northeast region of the US.

Keurig Dr Pepper facility details

KDP’s new facility will occupy a 1,541,280ft^² space on a former Kraft-Heinz site redeveloped by Ridgeline Property Group (RPG).

This development will include leasehold improvements and building infrastructure to support manufacturing, storage and distribution activities. The company will acquire equipment for the facility along with the necessary software and furniture, and will also provide training for employees.

The site will feature a cross-docked loading configuration, four entryways and early suppression fast response (ESFR) fire sprinklers. It will provide parking space for 982 private vehicles and 376 trailer storage stalls.

This new facility will aid KDP in optimising its logistics in the Northeast region through its large-scale warehouse operations.

The plant will support the production and distribution of beverages for existing and new brands of KDP.

Financing for the new beverage production facility

The Department of Community and Economic Development proposed funding $1.5m through the Pennsylvania First grant and $170,100 through the Workforce and Economic Development Network of Pennsylvania (WEDnetPA) programme. The department will also issue job creation tax credits worth $1.134m following new job creation by the company.

The Governor’s action team, comprising a group of economic development professionals working under the governor’s office, provided assistance for the project.

Keurig Dr Pepper’s product portfolio

KDP’s product portfolio includes a range of coffees, flavoured soft drinks, teas and waters, juices, and mixers.

Its popular coffee brands include Peet’s, Barista Prima Coffeehouse and High Brew.

Flavoured soft drinks offered by KDP include 7Up, Schweppes, Cactus Cooler, Squirt and Big Red.

KDP’s range of teas and waters include Straight Up, Penafiel, VitaCoco and Neuro.

Clamato, Margaritaville, SunnyD, HyDrive, Venom, Nantucket Nectars, Real Lemon, and Rose’s are all part of the company’s juices, juice drinks and mixers product portfolio.

Marketing commentary on Keurig Dr Pepper

Keurig Dr Pepper was formed by the merger of Keurig Green Mountain and the Dr Pepper Snapple Group (DPS) in 2018. With combined net sales of $11bn in 2017, KDP became the seventh-largest food and beverage company in the US.

DPS was established with the invention of soft drink by Jean Jacob Schweppe in 1783. The company’s business included 22 manufacturing facilities and 100 warehouses and distribution centres, with 21,000 employees across North America.

Keurig Green Mountain’s coffee legacy dates back to over 35 years. The company had partnered with over 50 coffee, tea and cocoa brands.

KDP manufactures and distributes water, speciality coffee and tea, soft drinks, juices and mixers, as well as markets the Keurig coffee brewing system.

KDP’s brand portfolio includes 125 owned, licensed and partner brands. Its major brands include Keurig^®, Dr Pepper^®, Green Mountain Coffee Roasters^®, Canada Dry^®, Snapple^®, Bai^®, Mott’s^® and The Original Donut Shop^®.

The company employs more than 25,000 personnel and operates over 120 offices, manufacturing facilities, warehouses and distribution centres in North America.