US-based The Vita Coco Co., a market leader in coconut beverage products, has recently signed a new 5-year supply deal with Philippines-based Century Pacific Foods.
Both partners have started their supply collaboration since 2020, however with the new contract, Vita Coco will need 90 million litres of coconut water in the next 5 years. With the growing demand, Century Pacific will need to invest US$40 million to add new production capacity.
According to Noel Tempongko, Vice President of Century Pacific’s coconut OEM business, “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.”
Century Pacific’s coconut processing factory is located in Mindanao, with the Philippines being the world’s 2nd largest supplier of coconuts after Indonesia. The company’s partnership with Vita Coco also marked its entry into the coconut water business.
In 2023, Vita Coco generated net sales of US$493 million, up 15% year-on-year. With growing health and wellness trend, and coconut water positive association with health, Vita Coco expects this segment to grow rapidly in the future. Century Pacific has become one of the largest suppliers of Vita Coco, augmenting its capacity by 50% in 2022.
Both partners also mentioned that the new supply deal will further support the growth of the local coconut industry. The Philippines has around 2.5 million coconut farmers, most of whom are located in Mindanao. Century Pacific works with local smallholder farmers, creating market access for their produce.
Century Pacific is a leading food manufacturer in the Philippines and is primarily engaged in the manufacturing, marketing, and distribution of processed marine, meat, milk, coconut, plant-based, and pet products.
