Century Pacific Food, Inc. (CNPF), one of the leading food and beverage companies in the Philippines owned by the Po family, is expanding its coconut business with the acquisition of the 100-percent stake in Coco Harvest Inc.
Coco Harvest owns a coconut processing facility in Misamis Occidental which has the capability to produce higher value coconut-based products such as coconut water, coconut milk, desiccated coconut and virgin coconut oil.
CNPF said in a disclosure to the stock exchange Thursday it would spend roughly $40 million to acquire Coco Harvest and expand its facility.
The acquisition and expansion would be funded by the company’s internally-generated cashflow from operations.
CNPF president and chief executive Teodoro Alexander Po said the deal is an accretive acquisition.
“More importantly, it marks a significant milestone for the company. 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,” Po said.
Po said CNPF planned to further grow its coconut business moving forward as it sees continued growth in demand.
“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,” Po said.
CNPF signed a new expanded long-term agreement with The Vita Coco Company Inc., a global leader in the coconut water category in March. The agreement indicates increased volume commitments from Vita Coco amounting to about 90 million liters over the next five years.
CNPF also launched its own branded coconut business serving the domestic market.
Built in 2016, the fully-integrated facility of Coco Harvest sits on a six-hectare property and is strategically located to capitalize on the abundance of coconut supply in the region.
