CENTURY PACIFIC Food, Inc. (CNPF) has earmarked $40 million, or P2.2 billion, to boost coconut water production, the company announced on Monday.

The company aims to cater to the requirements of the US-based beverage firm The Vita Coco Company, Inc., which requires approximately 90 million liters of coconut water over the next five years, Century Pacific Food said in a statement.

“The expansion of the multi-year [partnership] agreement with Vita Coco conveys our mutual trust and respect for each other as business partners, a relationship built through consistency, collaboration, and excellence,” said Noel M. Tempongko, Jr., vice-president of CNPF’s coconut OEM (original equipment manufacturer) business.

The previous agreement signed in 2020 “continues to be in force and is up for renewal discussions in 2025,” the company said. “The new contract is incremental to the existing agreement.”

The initial agreement started in 2012, and since then, the company has been producing coconut products for Vita Coco. CNPF said it augmented Vita Coco’s capacity by 50% in 2022, becoming one of its largest suppliers.

“We look forward to further solidifying our long-term partnership with Century Pacific. Our mutual ambition to serve consumers better with healthier products has taken us to new heights in innovation and quality,” Vita Coco Chief Operating Officer Jonathan Burth said.

“This agreement also creates an avenue by which we collaborate to make a positive impact on society and help build thriving communities among smallholder farmers in the Philippines,” he added.

Mr. Tempongko said that the deal will further support the growth of the local coconut industry in Mindanao where CNPF operates.

CNPF is primarily engaged in the manufacturing, marketing, and distribution of processed marine, meat, milk, coconut, plant-based, and pet products.

On Monday, shares in the company fell by P0.75 or 2.09% to close at P35.05 apiece. — Sheldeen Joy Talavera