FOOD MANUFACTURER Century Pacific Food, Inc. (CNPF) has forged a long-term agreement worth more than $50 million to be the original equipment manufacturer for Malaysia-based coconut producer Linaco Group.
In a stock exchange disclosure on Monday, it said that the two companies had agreed to boost volume commitments and expand the range of products that CNPF produces to meet Linaco’s increasing requirements.
Under the extended partnership, CNPF has an additional investment worth P300 million for the improvement of its coconut manufacturing capacity and to keep up with the international demand for high-value coconut products.
The pairing between the two manufacturers started in 2018, when CNPF signed up to be the original equipment manufacturer for Linaco’s coconut milk brands.
“The multi-year contract strengthens CNPF’s position as a leading and fast-growing player in the Philippine coconut industry and comes at a time when product health and safety continues to be top of mind among consumers amidst the ongoing pandemic,” the disclosure said.
Noel M. Tempongko, Jr., CNPF vice-president and general manager of integrated coconut operations, said the renewed partnership with Linaco bodes well not only for the company, but also for the coconut farmers in Mindanao, as they are given a stable market access for their products.
“We view this renewed partnership as a gesture of their continuing trust in our capabilities as a high-value coconut producer and supply partner,” Mr. Tempongko said.
Meanwhile, CNPF Executive Chairman Christopher T. Po said the company’s growing presence in the global coconut market is a part of its long-term plan to create a healthier and more diversified product lineup.
“We will continue to leverage on our manufacturing expertise, as well as our marketing and research and development capabilities, to capitalize on emerging global trends, and invest in our robust new product pipeline,” Mr. Po said.
CNPF is a supplier of global coconut water brand Vita Coco and offers several other coconut-based products such as desiccated coconut, virgin coconut oil, coconut flour and coconut milk.
On Monday, shares in CNPF fell 1.24% or P0.20 to close at P15.96 per share. — Revin Mikhael D. Ochave
