MANILA - Century Pacific Food, Inc. (CNPF) on Monday said it inked a multiyear contract with the Malaysia-based coconut producer Linaco Group as part of its efforts to produce "healthier products."
CNPF said both companies agreed to hike volume commitments and expand its product range to serve Linaco's growing requirements. The partnership began two years ago, with CNPF signing on as original equipment manufacturer (OEM) of Linaco’s coconut milk brands.
"This multi-year contract, valued at more than USD50 million (P2.43-billion) strengthens CNPF’s position as a leading and fast-growing player in the Philippine coconut industry," CNPF said in a statement.
“Our growing presence in the global coconut market – both as an OEM export manufacturer and domestic branded player - is in line with our long-term vision of building a healthier and more diversified suite of shelf-stable food and beverage products. We will continue to leverage on our manufacturing expertise, as well as our marketing and R&D capabilities, to capitalize on emerging global trends, and invest in our robust new product pipeline,” said Christopher Po, CNPF’s executive chairman.
It is also augmenting its coconut manufacturing capacity with an additional investment of P300 million to address the growing demand, it said.
CNPF entered the coconut business as an integrated manufacturer of high-value coconut products for OEM exports. It is one of the largest suppliers of Vita Coco globally.
CNPF, which also manufactures Century Tuna, 555 and Argentina among others, has diversified into other high-value coconut categories such as desiccated coconut, virgin coconut oil, coconut flour, coconut milk, and recently debuted "Coco Mama," a fresh coconut milk product sold in the Philippine domestic market.
"The product’s sales have grown significantly in the last few months amidst an ongoing health crisis wherein consumers are opting for healthier and more convenient alternatives. As a result, the Company is also in the process of installing additional lines which will more than double its production capacity for Coco Mama," it added.
Linaco’s high-value coconut products meanwhile are available in 40 countries, located across Europe, Middle East, China, Hong Kong and Australia.
“This new agreement will further strengthen our partnership with CNPF. We thank the team for their continuing understanding and support, which led to the achievement of this new milestone,” said
Joe Ling, managing director of Linaco.