Coco Harvest buyout to boost CNPF topline

Century Pacific Food Inc. (CNPF) is set to capitalize on the flourishing coconut industry by acquiring Coco Harvest Inc., a coconut processing facility in Misamis Occidental, Mindanao. 

In an interview, CNPF Executive Vice President and Chief Operations Officer Gregory H. Banzon said the company expects the acquisition to contribute to its financial growth as early as next year.

The anticipated capacity increase will enable CNPF to meet the growing demand for coconut milk products, especially with the holiday season approaching.

“Realistically, (it may start contributing financially) by January but we are scaling up in capacity. It's going to start contributing to volume as early as October or November. Right now, we are trying to concentrate on meeting domestic demand,” Banzon said. 

“(Our coconut business), in terms of total revenues, north of about P5 to P6 billion on an annualized basis,” he noted. 

Early this month, CNPF announced its full buyout of Coco Harvest for $40 million. 

The investment covers the purchase and planned improvements of the facility, which produces coconut water, coconut milk, desiccated coconut, and virgin coconut oil.

The deal is also expected to create over 1,500 manufacturing jobs and provide market access to local coconut farmers.

Built in 2016, the 6-hectare facility is strategically located in a region rich in coconut supply, enhancing CNPF’s capacity to meet the growing demand for coconut-based products in domestic and export markets.

Expansion slated

For Banzon, the recent business move was primarily aimed at addressing the significant increase in customer demand for coconut products, which he said was also generated by CNPF.

“Right now, it's scaling up distribution. So we were pioneering. Other small brands were trying to crack the gata (coconut milk) market. I guess the organization was bold enough to try to make it into a package for most of the people,” Banzon said.

He added that to further expand its operations, the company is also looking at boosting its presence in the North American region.

“There's a lot of demand already by Filipinos abroad for Coco Mama. But we've been regulating it because we've been working or concentrating on supplying the domestic demand. I think the next step is to bring the brand to markets abroad,” he said.

In March 2024, CNPF signed an expanded long-term agreement with The Vita Coco Company, committing to supply approximately 90 million liters of coconut water over the next five years. 

Since entering the coconut category in 2012, CNPF has become a key player in both the domestic and international markets.