MANILA. Metro Pacific Investments Corp. (MPIC) is set to finalize its P1-billion acquisition of Franklin Baker Co. of the Philippines within the next two months, as the Pangilinan-led firm aims to expand its presence in the global coconut export market.
MPIC chair, president, and CEO Manuel V. Pangilinan confirmed in a recent interview that Metro Pacific Agro Ventures Inc. (MPAV), the conglomerate’s agricultural arm, would acquire 100 percent ownership of Franklin Baker, a leading producer of desiccated coconut.
As part of the takeover, MPIC plans to shift towards producing finished coconut products for export, according to Pangilinan. “It’s an export business for both Axelum and Franklin, which is a good business model: dollar revenues, peso expenses,” he said.
Expansion into Global Markets
Desiccated coconut, or dried and grated coconut meat, is widely used in baking and cooking. MPIC’s move aligns with its strategy to enhance its agricultural portfolio and leverage dollar-based revenues amid fluctuating exchange rates.
Franklin Baker has been an original equipment manufacturer (OEM) for Axelum Resources Corp., in which MPAV holds a 34.76-percent stake. Axelum currently exports its products to at least 25 international markets, including North America, Australia, Europe, South America, the Middle East, and parts of Asia. One of its key clients is the renowned Vita Coco brand.
Financial Challenges and Loan Restructuring
Despite its strong export footprint, Franklin Baker has faced financial difficulties. Last month, industry sources revealed that six banks were negotiating restructured terms for a P6.3-billion syndicated loan to Franklin Baker to prevent a potential default.
According to sources, Franklin Baker has been actively seeking potential investors to stabilize its financial standing. The company, founded in 1921 by American flour miller Franklin Baker Sr. and his son, currently exports to over 50 countries, with the United States as its largest market.
Manufacturing Capacity and Temporary Shutdown
Franklin Baker operates three manufacturing facilities in the Philippines—one in San Pablo, Laguna, and two in Davao del Sur—with a total production capacity of 65 million pounds of desiccated coconut per year.
However, a November 2024 market report by Chelmer Foods Ltd. indicated that all three factories had temporarily ceased operations due to ongoing financial obligations. The report underscores the urgency for Franklin Baker to restructure its debt and secure strategic partnerships.
Strengthening the Philippine Agro-Export Industry
MPIC’s acquisition is expected to reinforce the Philippine coconut industry’s global competitiveness, with peso-denominated production costs and dollar-based revenues providing a strong financial advantage.
As the transaction nears completion, MPIC’s expansion into value-added coconut exports could position the company as a key player in the international market, strengthening the Philippines’ standing as a major coconut producer worldwide.
Carlo Juancho FuntanillaFrontend Developer, WordPress, Shopify
Contributing Editor
AMA ACLC San Pablo
- Carlo Juancho Funtanillahttps://tutubi.ph/author/carlojpf/
- Carlo Juancho Funtanillahttps://tutubi.ph/author/carlojpf/
- Carlo Juancho Funtanillahttps://tutubi.ph/author/carlojpf/
- Carlo Juancho Funtanillahttps://tutubi.ph/author/carlojpf/
