Century Pacific Expands Deal with Vita CocoThursday, December 10, 2020
Century Pacific Food, Inc. (CNPF), one of the country’s leading food companies, expanded its long-term agreement with Vita Coco, the world’s leading coconut water brand. CNPF has been in partnership with Vita Coco for several years now. It has produced many of the brand’s coconut products, including the packaged coconut water it is most known for.
Under the multi-year contract, valued at more than $165 million or P7.9 billion, CNPF will serve as Vita Coco’s original equipment manufacturer (OEM). This, according to company officials, will reinforce CNPF’s position as the leading coconut water exporter from the Philippines and one of the largest suppliers for Vita Coco globally. “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,” said Noel Tempongko, VP and general manager of Century’s Pacific’s coconut business.
In 2021, 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. This comes at a time when product health and safety continue to be top of mind among consumers amid the ongoing COVID-19 pandemic
The expanded deal between CNPF and Vita Coco is also 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.
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. “Century Pacific has been one of our most committed, reliable and largest factories. We are pleased to strengthen our partnership even further,” he said.