Vita Coco eyes $3M/mo from coco water exports

MANILA, Philippines - The $15-million Vita Coco packing plant in Pili, Camarines Sur could earn $3 million a month once the facility starts operating sometime in May 2012, AgriNurture Inc. (ANI) chief executive officer Antonio L. Tiu said yesterday.

In a press briefing, Tiu said the joint venture with Pepsi Corp. subsidiary Vita Coco would benefit some 17,000 coconut farmers, provide direct employment to 400 workers and offer indirect employment to some 1,600 workers in the logistics sector.

All of the CamSur plant’s production, Tiu said, would be for export. The target export markets include the United States, Australia, China and the Middle East.

According to Tiu, the Middle East market offers more potential for the Philippines because of the scarcity of water in the mainly desert nations.

While China is a big market, Tiu explained, the Chinese are still skeptical about coconut water and prefer coconut milk.

The US market, aside from its distance, already has access to coconut water from its South American neighbors.

The coco water facility is being built in   the food terminal complex in Pili, Camarines Sur.

The coconut water packing plant is to be operated by Vita Coco, in partnership with ANI.

The construction cost is around $5 million, while $10 million has been allocated for the large-scale planting of coconut trees in the Bicol region in the next few years.

The facility will initially produce 8ml bottles of coconut water.

Coconut water is gaining popularity as a health drink in major foreign markets such as the continental United States, and demand is expected to rise.

Even world-renowned celebrities are cashing in on the coconut water craze, with pop icon Madonna already a part-owner of Vita Coco, and popular recording artist Rihanna lined up, among others, as an endorser for Vita Coco.

Founder and CEO Michael Kirban said that Vita Coco is made from 100 percent natural coconut water and contains five essential electrolytes, including potassium, sodium, magnesium, calcium and phosphorous, and contains 15 more times electrolytes than other sports drinks.

The establishment of the coconut water plant was one of the new investments in the Philippines by American firms announced by President Aquino during his recent visit to the US.