Kerry Group to invest US$43M in new coffee manufacturing facility in Pennsylvania

USA – Irish food and beverage company Kerry Group has announced plans to invest $43 million in establishing its first manufacturing facility in Pennsylvania.  

The facility, located in Bethlehem’s Hanover Township, will focus on coffee roasting and extraction, marking a significant expansion of the group’s North American operations. 

According to the company, the site will retain 16 employees from an acquired organization and create at least 61 new full-time positions over the next three years. The investment reinforces Kerry’s commitment to advancing its sustainable nutrition portfolio while supporting local job growth in the U.S. 

Kerry Group, which provides science-backed nutrition solutions for the food, beverage, and pharmaceutical industries, employs more than 21,000 people globally, including around 6,000 in the U.S. John Cahalane, President and CEO of Kerry North America, said the expansion would help the company meet growing demand for natural coffee ingredients. 

“Kerry is delighted to announce an investment in our coffee extract business, with the acquisition of a new, state-of-the-art manufacturing facility in Bethlehem, Pennsylvania,” Cahalane stated.  

“With this acquisition, Kerry is enhancing production capabilities and leveraging advanced technologies to meet the rising demand for all-natural coffee ingredients across multiple markets, ultimately driving business growth and innovation. We are especially proud to partner with the Commonwealth of Pennsylvania, whose support has been instrumental in making this expansion possible.” 

The Pennsylvania Department of Community and Economic Development (DCED) has supported the project with a funding package that includes a US$316,880 Pennsylvania First grant and a US$200,000 WEDnetPA grant to train employees.  

The company has also been encouraged to apply for the Manufacturing Tax Credit Program, which could provide additional tax benefits. 

Pennsylvania Agriculture Secretary Russell Redding welcomed the investment, noting its potential to strengthen local supply chains.  

“Investing to bring the manufacturing of coffee ingredients closer to Pennsylvania restaurants and coffee shops creates opportunities for small businesses to supply locally, save costs, and let customers keep their food dollars right here at home, feeding our economy,” Redding said. 

The expansion comes as coffee prices in the United States continue to climb due to global production challenges and import tariffs.  

According to the Bureau of Labor Statistics, coffee prices rose 20.9% year-over-year in August, with roasted coffee increasing 21.7% and instant coffee up 20.1%. 

The U.S. remains heavily dependent on imports for coffee, producing less than 1% of domestic consumption. Recent trade measures have further pressured supply chains, including a 10% tariff on imports introduced in April and a subsequent 50% tariff on Brazilian imports in July. Brazil and Vietnam together account for about half of the world’s coffee output. 

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