MANILA, Philippines — Po family-led Century Pacific Food Inc. (CNPF) has expanded its long-term agreement with coconut water brand Vita Coco.
Next year, CNPF is set to embark on a major expansion of its coconut business, increasing manufacturing capacity with an additional investment of P300 million to address the growing global demand for high-value coconut products.
CNPF has extended its contract as original equipment manufacturer (OEM) for Vita Coco in a deal valued at more than $165 million.
This reinforces CNPF’s position as the leading coconut water exporter from the Philippines and one of the largest suppliers for Vita Coco globally, said Noel Tempongko, VP and general manager of Century Pacific’s coconut business.
“The extension of our long term agreement with the global leader in packaged coconut water is proof positive that both parties are fully confident that, together, we will continue on the growth trajectory we have seen over the last few years into the foreseeable future,” he said.
CNPF has been the manufacturer of Vita Coco for several years now, producing many of the brand’s coconut products, including the packaged coconut water.
“In addition to the future business potential, we are honored to sign this agreement with Vita Coco because of the many corporate values we share. These include our desire to provide better nourishment for consumers, pursue continuous improvement in the manufacturing process, and further support local coconut farming communities,” said Tempongko.
The expanded deal between CNPF and Vita Coco is expected to benefit the many coconut farmers of Mindanao, where the company’s coconut factory is located and sources its main raw materials.
Farmers will be guaranteed market access for their products over the next few years, providing additional income to thousands of families in the area.
Christopher Po, Century Pacific’s executive chairman, said the long-term agreement with Vita Coco bodes well for both the company and the country as it helps create maximum value from one of the Philippines’ most versatile products which is the coconut.
“For CNPF, our growing presence in the global coconut market is in line with our long-term vision of a diversified portfolio of shelf-stable food and beverage products. We will continue to leverage on our manufacturing expertise to capitalize on emerging global trends, particularly towards health and wellness products,” Po said.
Jonathan Burth, COO of All Market Inc, which owns the Vita Coco brand, said the company is bullish on coconut water as a category, as it continues to be a more relevant product given the increasing awareness and demand from consumers for healthier and good-for-you beverages.
“This expanded contract will help supply that increased demand. Century has been one of our most committed, reliable and largest factories. We are pleased to strengthen our partnership even further,” he said.