Axelum Resources Corporation, the country’s leading fully-integrated manufacturer and exporter of premium coconut products, has signed a multi-year supply deal initially valued about P20 billion with The Vita Coco Company, Inc., one of the world’s largest coconut water brands, on strong global demand for coco water.

In a press briefing, Axelum Chairman and CEO Romeo I. Chan said “This contract renewal marks the continuing strategic alliance between two industry leaders, who are strongly positioned to capitalize on the robust trajectory of the global coconut water segment in the coming years.”

The supply contract is until 2033 and the 10-year agreement may be extended for another five years.

Based on the latest SkyQuest Technology report, the global coconut water market size was valued at $6.57 billion in 2022, and is poised to grow from $7.63 billion in 2023 to $25.18 billion by 2031, at a compounded annual growth rate of 16.1 percent during the forecast period. 

Rising market demand is primarily driven by a rapidly-growing health-conscious population with an increasing preference for non-conventional beverages and expanding awareness on the nutritional benefits of coconut water.

In 2009, Axelum became the first supplier to Vita Coco located outside of Brazil. Axelum operates a state-of-the-art ultra-high temperature processing facility, skillfully manned by dedicated personnel, to produce some of Vita Coco’s bestselling products - Original Coconut Water, Farmers Organic and Pressed Coconut Water. 

Recently, Axelum commissioned a new filling machine to augment its existing production output to meet the increasing volume requirements of Vita Coco in the long-term.

“We are proud to be associated with an iconic better-for-you beverage brand, who shares our passion for delivering high-quality and better-tasting coconut water products to the international mainstream market,” said Chan. 

He added that, “Our longstanding partnership is the epitome of technology and innovation, transforming a tropical fruit derivative into a high-demand global consumer product. For Axelum, this will only further strengthen one of our fastest-growing segments.”

“Axelum has been an integral part of our growth story. Throughout the years, they have proven to be a reliable partner that has consistently ranked amongst our top suppliers in terms of quality and service,” said Vita Coco Co-Founder and Executive Chairman Michael Kirban. 

He noted that, “With this new deal, we are excited to continue our relationship and look forward to driving exponential growth for many years to come.”