Axelum signs ₱20-B supply deal with Vita Coco

Axelum Resources Corporation, the country’s leading fullyintegrated manufacturer and exporter of premium coconut products, has signed a multi-year supply deal valued around ₱20 billion with The Vita Coco Company, Inc., one of the world’s largest coconut water brands, on strong global demand for coco water.

In a press briefing, Axelum Chairman and CEO Romeo I. Chan said “This contract renewal marks the continuing strategic alliance between two industry leaders, who are strongly positioned to capitalize on the robust trajectory of the global coconut water segment in the coming years.”

The supply contract is until 2033 and the 10-year agreement may be extended for another five years.

Based on the latest Skyquest Technology report, the global coconut water market size was valued at $6.57 billion in 2022, and is poised to grow from $7.63 billion in 2023 to $25.18 billion by 2031, at a compounded annual growth rate of 16.1 percent during the forecast period.

Rising market demand is primarily driven by a rapidlygrowing health-conscious population with an increasing preference for non-conventional beverages and expanding awareness on the nutritional benefits of coconut water.

In 2009, Axelum became the first supplier to Vita Coco located outside of Brazil. Axelum operates a state-of-theart ultra-high temperature processing facility, skillfully manned by dedicated personnel, to produce some of Vita Coco’s bestselling products - Original Coconut Water, Farmers Organic and Pressed Coconut Water.

Recently, Axelum commissioned a new filling machine to augment its existing production output to meet the increasing volume requirements of Vita Coco in the long-term.