Century Pacific Food, Inc. and The Vita Coco Company, Inc. Enter into New Long-Term Agreement

Century Pacific Food, Inc. (CPNF), one of the Philippines' biggest food companies, has signed a new long-term contract with The Vita Coco Company, Inc., a global leader in the coconut water market. The agreement covers Vita Coco's increased volume requirements, which will necessitate new capacity and a CAPEX investment of roughly USD 40 million. This is expected to generate at least 1,500 quality manufacturing employment.

The previous agreement, signed in 2020, remains in effect and is up for renewal discussions in 2025. The new contract is an addition to the old arrangement.

Noel Tempongko, Jr., Vice President of CNPF’s Coconut OEM business, said, “The expansion of the multi-year agreement with Vita Coco conveys our mutual trust and respect for each other as business partners, a relationship built through consistency, collaboration, and excellence.”
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The company's partnership with Vita Coco signified CNPF's entry into the coconut market. The initial partnership was signed in 2012, and since then, the group has developed numerous coconut products for Vita Coco. With long-term health and wellness trends on the rise, both partners have experienced strong sales growth over the last decade. CNPF has grown to become one of Vita Coco's main suppliers over this time, increasing its capacity by 50% in 2022 to meet the brand's expanding demand.

According to the new contract, Vita Coco will need around 90 million liters of coconut water over the next five years. 

Tempongko shared, “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.” 

Jonathan Burth, Chief Operating Officer of The Vita Coco Company, said, “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. This agreement also creates an avenue by which we collaborate to make a positive impact on society and help build thriving communities among smallholder farmers in the Philippines.”
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According to Tempongko, the agreement will help the region's coconut sector flourish even further. The Philippines is the world's second-largest producer of coconuts, with around 2.5 million growers, many of whom live in Mindanao, where CNPF operates.
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CNPF collaborates with local smallholder farmers to improve market access for their produce. In 2021, the group collaborated with GCash, the Philippines' largest e-wallet, and HOPE, an impact organization, to plant and gift 1 million coconut trees to smallholder coconut producers in Mindanao. These younger seedlings help farmers increase their farm output and profits. The program contributes to the long-term supply of coconuts, hence supporting the sustainability of the country's coconut sector. The CNPF finished the 1 Million Coconut Trees program in 2022.

Vita Coco announced "Seedlings for Sustainability" in 2023, vowing to donate up to 10 million coconut trees to partner farming communities around the world by 2030, in conjunction with HOPE and other organizations. 

Century Pacific Food, Inc. (PSE: CNPF) is one of the Philippines' largest branded food and beverage companies. It is primarily engaged in the manufacturing, marketing, and distribution of processed marine, meat, milk, coconut, plant-based, and pet products. With an established track record in brand-building spanning more than 40 years, it has developed a roster of household names which include Century Tuna, Argentina, 555, Angel, and Birch Tree. These brands of the Company hold market leading positions locally and are growing their presence abroad. Further, the Company also operates as one of the Philippines' leading providers of private label tuna and coconut products for export overseas.