Discover how Calavo Growers is redefining quality, sustainability, and innovation in the world of fresh produce.

Calavo Growers, Inc., established in 1924, has been at the forefront of the produce industry for nearly a century. Based in Santa Paula, California, the company has carved a name for itself as a leader in the avocado market and a provider of high-quality fresh foods.

From its humble beginnings, Calavo has expanded to operate globally, with a presence in several key markets. Over the years, it has diversified its product portfolio to include not only fresh avocados but also tomatoes, papayas, and a range of prepared foods like guacamole. This growth is reflected in its two main business segments: Grown and Prepared.

The Grown segment is particularly notable for fresh produce like avocados, which are the flagship product of the company. Calavo sources avocados from a variety of locations, including California, Mexico, and other growing regions around the world, catering to diverse retail, foodservice, and wholesale markets.

The company prides itself on providing consistent, high-quality avocados year-round, which is achieved by leveraging its strong relationships with growers and focusing on optimal harvesting and packaging practices. Additionally, the company sells fresh tomatoes and papayas, expanding its reach within the produce market.

The Prepared segment focuses on value-added products and ready-to-eat options. One of the hallmarks of this segment is its guacamole business, which has become a key product for Calavo. The guacamole is produced using ultra-high pressure technology, a process designed to maintain freshness and flavor without preservatives. The product is available in both frozen and fresh forms, catering to different customer preferences and offering versatile options for retail, foodservice, and club store customers.

Beyond guacamole, Calavo’s prepared product line includes an extensive array of fresh-cut fruits and vegetables. The company has strategically developed processing facilities across the United States, allowing it to offer products that can be delivered to retailers shortly after production, ensuring freshness. These fresh-cut products include single-ingredient items as well as combinations, such as fruit blends and salads.

Calavo also produces an array of ready-to-eat items like sandwiches, wraps, salads, and parfaits, meeting the growing demand for convenient and healthy meal options. Additionally, the company sells ready-to-heat entrées and various deli items, contributing to its diverse product portfolio.

The products in the Prepared segment are marketed under different brand names, including Calavo, Avofresco, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials, as well as private labels. This branding strategy allows the company to reach a variety of customers and markets, providing options for both retail and foodservice, as well as store-brand and private-label programs. The company’s marketing and distribution capabilities ensure that its wide array of fresh and prepared foods are available not only domestically but also internationally.

Calavo’s history is deeply rooted in the California avocado industry. Since its inception, the company has built strong relationships with growers and developed robust sourcing capabilities, which have allowed it to maintain a consistent supply of avocados year-round. The company has extended its reach to Mexican growers, particularly from the regions of Michoacán and Jalisco, enabling it to offer a wide array of fresh produce throughout the year. The ability to source from various locations has been key to Calavo’s competitive advantage, as it ensures that customers have access to high-quality produce irrespective of the season.

In recent years, Calavo’s leadership has undergone some changes, with Lee E. Cole returning as CEO in March 2023. Under Cole’s direction, the company has reaffirmed its commitment to improving financial performance by honing in on its operational fundamentals, especially within the avocado business. The renewed focus on the fundamentals of the avocado sector led to significant progress in fiscal 2023. The guacamole business, in particular, experienced a rebound due to operational enhancements and lower fruit costs, while other divisions saw a gradual improvement throughout the year.

One significant decision made by Calavo’s leadership in 2023 was the signing of a non-binding letter of intent to sell its Fresh Cut business to F&S Fresh Foods. This move was designed to sharpen Calavo’s focus on its core avocado and guacamole businesses.

While the sale of the Fresh Cut division will reduce Calavo’s top-line revenue, the strategic shift aims to streamline the company’s operations, creating efficiencies and ultimately enhancing shareholder value. By narrowing its focus on its strengths, particularly the avocado and guacamole segments, Calavo is positioning itself to deliver compelling returns and strengthen its market standing.

Sustainability isn’t just a buzzword for Calavo; it’s woven into the very fabric of how the company operates. Rather than just ticking boxes, Calavo actively collaborates with its growers to implement sustainable and environmentally friendly practices.

This means focusing on resource efficiency and responsible agricultural methods at every step. The company also embraces technology to enhance its product lines — a great example being the ultra-high pressure processing used for its guacamole. This innovation maintains the freshness and safety of the food without compromising its natural flavor and quality.

Quality is at the heart of everything Calavo does, and this shines through in both its product development and marketing. The company is not just reacting to trends; it’s constantly researching and innovating to keep up with what consumers want — fresh, healthy foods.

Calavo is proud of all the people behind the scenes who work so hard and make it possible to bring only the best foods to the kitchen table. | Image: Courtesy of Calavo

A key part of this commitment is Calavo’s expertise in ripening technology, which ensures their avocados hit the market at just the right moment for maximum flavor and enjoyment. It’s this passion for delivering top-quality produce and prepared foods that has fueled the company’s growth and helped it build lasting relationships with its customers.

Calavo has faced challenges, particularly with market fluctuations and operational hurdles within its Fresh Cut division. However, its emphasis on operational excellence and quality, along with a diverse product assortment, has continued to set it apart from its competitors. The company’s relationship with growers and its ability to procure and distribute fresh produce efficiently and effectively are key factors that have helped it maintain its position as a leading provider in the market.

In terms of financial performance, while Calavo has experienced some dips in recent years, it remains confident in its long-term earnings potential. With strong team members, assets, and customer relationships, the company is poised for continued growth. Its financial strategies, including working capital management and operational streamlining, aim to bolster shareholder value over time.