Century Pacific Food Inc., a Philippine-listed food and beverage company, on Thursday increased its exposure in the coconut industry with its acquisition of 100 percent stake in Coco Harvest Inc., a company that operates a coconut processing facility in Misamis Occidental.
Century Pacific Food said the acquisition, combined with planned investments in facility enhancements, will cost a total capital expenditure of around USD40 million. It said the investment will be financed by internally generated funds.
The expansion to the coconut industry is expected to create over 1,500 quality manufacturing jobs in Mindanao, generate demand for auxiliary services, and provide market access for local coconut farmers.
Coco Harvest established in 2016 a six-hectare fully integrated facility that produces high-value coconut-based products such as coconut water, coconut milk, desiccated coconut, and virgin coconut oil.
It is well-positioned to leverage the abundant coconut supply in Mindanao.Century Pacific Food president and chief executive officer Ted Po said the acquisition is both strategic and accretive.
“This deal represents a significant milestone for the company. Our coconut business, both domestic and export, has experienced substantial growth driven by increasing trends in health and wellness. The additional capacity from Coco Harvest will enable us to meet rising demand and accommodate future growth,” Po said.
In March 2024, Century Pacific Food also signed an expanded long-term agreement with The Vita Coco Company, Inc., a global leader in the coconut water category. The agreement commits to an increased volume of approximately 90 million liters over the next five years, further strengthening the listed company’s position in the coconut market.
The company entered the coconut sector in 2012, initially focusing on coconut water production for OEM export. Since then, the company organically expanded and launched a branded coconut product line for the domestic market. Century Pacific Food increased its capacity in 2022 to meet growing demand and now poised for further expansion.
“We are optimistic about the long-term growth prospects of our coconut business,” Po added. “What began as a niche market has evolved into a globally competitive platform thanks to our team’s dedication to excellence and innovation. This acquisition and the subsequent investments reflect our commitment to creating value for both the company and the local coconut farming industry.”
The Philippines, home to approximately 2.5 million coconut farmers, predominantly in the southern regions, will benefit from the company’s expanded presence.
Its commitment to support local farmers is demonstrated through its 2021 initiative, which involved donating 1 million coconut seedlings to smallholder farmers in partnership with GCash and HOPE.
This program aimed to replace low-yielding coconut trees, thereby increasing productivity, boosting farmer income, and ensuring a sustainable coconut supply.
Additionally, Vita Coco’s “Seedlings for Sustainability” program, which supports the donation of up to 10 million coconut seedlings by 2030, aligns with Century Pacific Food’s goals.
This program, in collaboration with HOPE and other non-profits, aims to support smallholder farming communities globally.
