Century Pacific Food, Inc. (PSE:CNPF), one of the leading food and beverage companies in the Philippines, announced the acquisition of a 100% stake in Coco Harvest Inc., which owns a coconut processing facility in Misamis Occidental, Mindanao, Philippines.
Built in 2016, the fully integrated facility of Coco Harvest sits on a 6-hectare property and has the capability to produce higher value coconut-based products such as coconut water, coconut milk, desiccated coconut, and virgin coconut oil. Furthermore, the existing facility is strategically located to capitalize on the abundance of coconut supply in the region.
CNPF is acquiring a 100% interest in Coco Harvest. Combined with further investments in facility improvements, the total capital expenditure allotted amounts to approximately USD 40 million, which will be financed by the Company’s internally generated cash flow from operations.
The capacity expansion is expected to generate more than 1,500 quality manufacturing jobs in Mindanao. It will also create demand for auxiliary services needed by the plant as well as provide market access for the harvests of coconut farmers in the region.
Ted Po, CNPF President and Chief Executive Officer, shares, “This deal is an accretive acquisition. More importantly, it marks a significant milestone for the company. Our coconut business, encompassing both domestic and export, has grown substantially these past few years on the back of burgeoning trends in health and wellness. The additional capacity from Coco Harvest will bolster our capability to serve rising demand, with room for expansion as the business grows.”
In March 2024, CNPF inked a new, expanded long-term agreement with The Vita Coco Company, Inc., a global leader in the coconut water category. The agreement stipulates increased volume commitments from Vita Coco amounting to approximately 90 million liters over the next five years.
CNPF entered the coconut category in 2012 as a manufacturer of coconut water for OEM export. Since then, the export business has grown organically as the Company built manufacturing capability in other product formats, serving key players in Southeast Asia such as Linaco Manufacturing. CNPF has likewise launched a branded coconut business serving the domestic market. In 2022, the Company further augmented its capacity to serve the business’ growing needs.
According to Po, CNPF anticipates that the business will outgrow the facility’s current capacity and has plans for further investments in expansion in the future.
“We are encouraged by the long-term growth trajectory of our coconut business,” shared Po. “From where we started, it has evolved to become globally competitive in the category through the team’s commitment to excellence and innovation. It’s a platform where we believe we can create more value for the company as well as the local coconut farming industry.”
There are approximately 2.5 million coconut farmers in the Philippines, mostly located in the southern regions of the country where CNPF’s coconut business operates.
The Company’s expanded presence in the region provides local smallholder farmers with market access, stimulating the industry. In 2021, CNPF committed 1 million coconut seedlings to smallholder farmers in partnership with the country’s leading e-wallet GCash and impact organization HOPE. These seedlings replace low-yielding, senile coconut trees, thereby increasing farm productivity, boosting smallholder farmers’ income, improving their livelihoods, and supporting long-term coconut supply. The program achieved its goal in 2022.
Last year, Vita Coco, through a program called “Seedlings for Sustainability”, committed to support the donation of up to 10 million coconut seedlings by 2030 to partner smallholder farming communities worldwide in collaboration with HOPE and other non-profit organizations.
