Century Pacific Food Inc. said Wednesday it signed a multi-year extension and expansion of its original equipment manufacturer agreement for Vita Coco, the world’s leading coconut water brand. The new deal is valued more than $165 million.
CNPF said in a disclosure to the stock exchange the new-long term agreement would strengthen its 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, vice-president and general manager of CNPF’s coconut business.
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. Since then, the two parties have grown in terms of volumes produced and delivered.
“We are very 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,” said Jonathan Burth, chief operating officer of All Market Inc., owner of the Vita Coco brand.
“This expanded contract will help supply that increased demand. Century has been one of our most committed reliable and largest factories. We are pleased to strengthen our partnership even further,” he said.
To meet the growing demand for global demand for high-value coconut products, CNPF will embark next year on a P300-million expansion of its coconut business.
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.
CNPF said farmers would be guaranteed market access for their products over the next few years, providing additional income to thousands of families in the area.
CNPF executive chairman Christopher Po said the long-term agreement with Vita Coco “bodes well for both our company and country as it helps us create maximum value from one of the Philippines’ most versatile fruits—the coconut.”
“For CNPF, our growing presence in the global coconut market is in line with our long-term vision of a diversified portfolio of shelf-stable food and beverage products. We will continue to leverage on our manufacturing expertise to capitalize on emerging global trends, particularly towards health and wellness products,” he said.