Century Pacific Food, Inc. is investing $40 million to acquire 100 percent of Coco Harvest Inc. and improve its coconut processing facility in Misamis Occidental, Mindanao, Philippines.
Built in 2016, the fully integrated facility of Coco Harvest 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 6-hectare facility is strategically located to capitalize on the abundance of coconut supply in the region.
For the acquisition, combined with further investments in facility improvements, the total capital expenditure allotted amounts to approximately $40 million, which will be financed by CNPF’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.
“This deal is an accretive acquisition. More importantly, it marks a significant milestone for the company,” said CNPF President and CEO Teodoro Alexander T. Po.
He noted that, “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, its 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. 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,” said Po.