Franklin Baker buys Davao coco plant
MANILA, Philippines—Franklin Baker Co. of the Philippines, one of the world’s largest desiccated coconut producers, has acquired a coconut processing plant in Davao del Sur that could double its existing production capacity.
This acquisition formed part of the company’s global expansion strategy, designed to maintain Franklin Baker’s position as a pre-eminent supplier of quality coconut products to global markets, Franklin Baker president and CEO Jerry Lorenzo said in a statement issued Thursday.
“We are delighted to be making this investment and also recognize that this is an investment in the Philippine economy with the resultant positive impact on the local community and the potential for creating up to 1,000 new jobs locally in Davao,” Lorenzo added.
According to Franklin Baker, the Davao plant it acquired was already fully constructed and may double production capacity of desiccated coconut and coconut water concentrate.
The acquisition will also hasten “the company’s entry into other coconut-related products that have recently shown vigorous growth in the developed markets. Among these are coconut water, virgin coconut oil, coconut milk and coconut flour.”
“Demand for our products is unprecedented and we are making this investment in order to build for the future and to ensure that Franklin Baker continues to provide world-class coconut products to an ever expanding range of international customers,” Lorenzo said.
Franklin Baker operates two manufacturing facilities in the Philippines, located at San Pablo, Laguna; and Sta Cruz, Davao del Sur.
Both facilities have a combined annual capacity of 65 million pounds of desiccated coconut, and 4 million liters of coconut water concentrate or 60 million liters of single strength coconut water.
The company, formerly owned by General Foods and Kraft Foods, has been producing desiccated coconut and other coconut products for over 100 years and continues to supply coconut ingredients to the world’s major confectionery and bakery producers such as Kraft Foods, Hershey’s, Kellogg’s, General Mills and Nestle, as well as other major producers in Europe, Latin America, Asia and the Middle East.
It exports to over 50 countries worldwide, with the United States as its major market.
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