The Maker of Century Tuna Is Expanding its Coconut Business

Canned food manufacturer Century Pacific Food, Inc. (CNPF) has set aside P5 billion for its capital expenditure this year, up from around P3 billion in 2023. Half of the allocation will go to its coconut business, capitalizing on higher global consumer demand. According to CNPF, the company is now gearing toward expanding its processing facilities, starting with the one in Mindanao.

“We are in the mid stages of completing our expansion because we’ve been getting more and more demand from our principals in [Southeast Asia and the United States],” Teodoro Po, vice chairman, president, and CEO of Century Pacific Food told the press in an interview.

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CNPF is targeting to increase its coconut processing capacity by 25 percent. This is equivalent to 1,600 processed coconuts per day in the medium term, a jump by more than half from its current 800 to 850. The maker of Century Tuna says the upgrade would be possible through its acquisition of new technologies. Earlier this year, CNPF also forged a long-term alliance with international brand Vita Coco for the latter to supply them with coconut water.

“If market trends continue, [….] five or seven years from now, we expect to double our current capacity,” said Po.

“We’re also creating multipliers across the coconut supply chain,” he added. “Coconut water comes with coconut meat [and] coconut shell, and the byproducts of which would be coconut flour and all of the other attendant byproducts. So, there’s a whole ecosystem built around coconut processing, and we’re certainly happy to grow that business.”

The other P2.5 billion of the capex will be allocated for maintenance and cost improvement, according to CNPF. This year’s budget will come from a combination of internally generated funds and short-term borrowings from banks.

The Po family-led manufacturer booked a 15-percent surge in its earnings, bringing the amount to P1.72 billion from January to March. Its revenues went up by 16 percent to P18.2 billion, with its coconut export business accounting for almost half of the growth.

Century Pacific Food, a wholly-owned subsidiary of Century Pacific Group, is one of the largest multinational food processing companies in the Philippines. Established in 1978, it has since grown its portfolio to include more than 200 products and 19 brands. Among the company's top canned products—besides Century Tuna—are Argentina Corned Beef and Angel Evaporada.