The Market Monitor Minding the Nation's Business
Tycoon Manuel V. Pangilinan has bought into the country’s oldest coconut processor, Franklin Baker (founded in 1921), that operates processing facilities in Laguna and Davao to fortify his firm’s presence in the coconut export sector.
Using the Metro Pacific Agro Ventures Inc. (MPAV), a unit under Metro Pacific Investment Corp., Pangilinan confirmed signing the agreement buying into Franklin Baker to stabilize its operations, clear pending export backlogs, and return to sustainable growth. Reports indicated the acquisition is worth ₱1 billion.
Franklin Baker, one of the country’s most established coconut processors, operates manufacturing facilities in Laguna and Davao and supplies various coconut products to over 50 countries. Exports include desiccated coconut, coconut water, virgin coconut oil and coconut cream.
MPAV said the acquisition of Franklin Baker builds on its previous investment in listed coconut product exporter Axelum Resources Corp, reported Business World.
In 2023, MPAV acquired a 34.76% stake in Axelum through a ₱5.3-billion deal.
Franklin Baker and Axelum have a combined capacity to process more than 2 million coconuts daily, according to MPAV.
“With Franklin Baker and Axelum, we now have the opportunity to scale a globally competitive coconut platform — one that brings together world-class processing, long-standing customer relationships, and strong ties to our farming communities,” said Pangilinan.
“This is a unique opportunity to strengthen a flagship export sector and help make Filipino agricultural products a global standard,” he added.
Vertical integration
MPAV said the acquisition supports its strategy to create a vertically integrated agribusiness portfolio consisting of coconut investments through Franklin Baker and Axelum; dairy through Carmen’s Best and Bukidnon Milk Co.; and fruit and vegetable production through Metro Pacific Fresh Farms.
The deal is also expected to safeguard the jobs of over 5,000 workers and maintain a reliable market for more than 50,000 coconut farmers nationwide.
“This transaction is about growth. With Franklin Baker joining Axelum in our portfolio, we are building a coconut powerhouse that combines heritage, scale, and global reach,” MPAV President/CEO Jovy I. Hernandez said.
“Our goal is to strengthen the entire value chain — from farmer to processor to export markets — while cementing the Philippines’ leadership in the global coconut industry,” he added.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the acquisition will position the Metro Pacific group as a major player in the coconut industry.
“It’s a business with many challenges but also significant potential. They would have to boost productivity and efficiency through substantial investments to ensure coconut exports remain competitive, especially in the face of United States tariffs,” he said.
“We expect Metro Pacific to leverage its management acumen, operational discipline, and financial resources to make this a profitable and socially impactful business,” he added.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc. Rose de la Cruz