$15-M coconut water factory rising in CamSur

PILI, Camarines Sur—The unexpected $15-million investment pledged to President Aquino in his visit to the United States has been negotiated by the provincial government of Camarines Sur early this year, according to Gov. Luis Raymund “LRay” Villafuerte.

The Pepsi Corporation, through its subsidiary Vita Coco with local company AgriNurture Inc. (ANI), is putting up a facility in this town to mass produce tetra packs of coconut water, according to the governor in an interview in his residence here.

He said the packaging facility is worth at least $5 million and another $10 million has been pledged for large-scale planting of coconut trees in areas in the Bicol region in several years.

Groundbreaking

Villafuerte said the tetra-packing facility will be within a Food Terminal Complex in Pili, which will have its groundbreaking ceremony on Sept. 29. The facility’s target opening date is May 1 next year, the governor said.

He said since the tetra-packing facility is located in this town, it is assumed that the massive planting of coconut trees would be carried out in Camarines Sur near the packing facility.

Jonathan Burth, director of operations of Vita Coco, informed Villafuerte that “(o)ver the past four months, All Market Inc. and ANI has put together the necessary resources to finalize the engineering scope and processing equipment required for the factory in Pili.”

Burth added in a letter to Villafuerte dated Aug. 23, 2011, that the tetra-packing facility “will initially produce 8mm liters of coconut water in the first year.”

Equipment purchase

He said purchase order for the processing equipment has since been put in by ANI.

Burth said that the commercial production for the project is scheduled to start on May 1, 2012, and “both parties (Vita Coco and ANI) are putting much resource to ensure that the timeline is being met.”

“We are very excited about getting the project moving with ANI, which will no doubt bring increased job opportunities and export revenue to the province of Camarines Sur,” he said.

In a letter dated Aug. 24, 2011, Antonio L. Tiu, chief executive officer of ANI, requested Villafuerte to speed up the clearing of the site for the tetra-packing facility which Vita Coco plans to set up.

Tiu estimated that the project will help thousands of coconut farmers generate additional income and create additional export revenue for the country aside from the direct investment of Vita Coco and ANI in the amount of at least $5 million.

1,000 jobs

He said that the project is expected to create at least 1,000 jobs in the Bicol region.

Malacañang on Monday said a stream of American business executives called on Mr. Aquino at his hotel in New York, expressing interest in investing in the Philippines.

Reports quoted Ricky Carandang, communications secretary, as saying among those who called on Mr. Aquino were executives of US food and beverage giant Pepsi Corporation.

Carandang was quoted as saying the President was in “good spirits” after the beverage company executives informed him of the huge global market for coconut water and its touted medicinal values for the health-conscious consumers.