Century Pacific Food Inc. (CNPF) is spending $40 million to acquire and expand a coconut processing facility in Misamis Occidental, Mindanao in a bid to meet the growing demand for coconut-based products here and abroad.
In a disclosure on Thursday, the Po family-led food manufacturer announced its 100-percent stake purchase of Coco Harvest Inc., which has a capability to produce coconut water, coconut milk, desiccated coconut and virgin coconut oil.
“Our coconut business, encompassing both domestic and export, has grown substantially these past few years on the back of burgeoning trends in health and wellness,” CNPF president and CEO Ted Po said.
“The additional capacity from Coco Harvest will bolster our capability to serve rising demand, with room for expansion as the business grows,” he added.
READ: Century Tuna maker earmarks half of capex to coco biz
The company expects to generate 1,500 manufacturing jobs in Mindanao with the planned plant expansion. In addition, it will provide market access for harvests of coconut farmers.
In March, the food and beverage company inked a new long-term contract with The Vita Coco Company Inc., requiring Century Pacific to provide the latter with 90 million liters of coconut water over the next five years.
The company is also utilizing coconut shells as an alternative source of power for its processing facility in a bid to reduce coal usage by at least 35 percent.
CNPF previously stressed the need to invest in biomass, a type of energy harnessed from animals and plants.
The maker of Century Tuna, Argentina Corned Beef and Angel Evaporada entered the coconut category in 2012 and it has been growing since. It is serving the local market and the key players in Southeast Asia such as Linaco Manufacturing.
“We are encouraged by the long-term growth trajectory of our coconut business,” Po said.