CNPF to expand capacity after new deal with Vita Coco
Century Pacific Food Inc. (CNPF), the Po family’s listed food and beverage firm, is poised to invest $40 million to expand its capacity after securing a fresh long-term contract with US-headquartered The Vita Coco Co. Inc.
CNPF said the new contract is incremental to the existing agreement signed with Vita Coco, a global leader in the coconut water category, back in 2020 which remains in force and is up for renewal discussions in 2025.
The new agreement covers additional volume requirements by Vita Coco, which will entail new capacity requiring an approximately $40 million investment and is expected to generate at least 1,500 manufacturing jobs.
Vita Coco will require approximately 90 million liters of coconut water over the next five years under the new deal, according to CNPF.
“We are thrilled to enter into this new agreement and eagerly anticipate the opportunity to meet the heightened demand. As such, we are planning to invest in additional capacity, which will create more jobs in Mindanao and help stimulate the local economy,” CNPF vice president for coconut OEM business Noel Tempongko Jr. said.
“The expansion of the multiyear agreement with Vita Coco conveys our mutual trust and respect for each other as business partners, a relationship built through consistency, collaboration, and excellence,” he said.
The Philippines, which is home to approximately 2.5 million coconut farmers, many of whom are located in Mindanao where CNPF operates, is the second largest producer of coconuts in the world.
Tempongko said the deal further supports the growth of the local coconut industry in the region.
CNPF’s partnership with Vita Coco marked the company’s entry into the coconut category.
Since the initial agreement commenced in 2012, the group has produced a portfolio of coconut products for Vita Coco.
CNPF has become one of the largest suppliers of Vita Coco, augmenting its capacity by 50 percent in 2022 to serve the brand’s growing needs.
“We look forward to further solidifying our long-term partnership with Century Pacific. Our mutual ambition to serve consumers better with healthier products has taken us to new heights in innovation and quality,” VitaCoco COO Jonathan Burth said.