Calavo Growers, Inc. (Calavo) provides value-added fresh food. The company’s expertise in marketing and distributing avocados, prepared avocado products, and other perishable foods allows it to deliver a wide array of fresh and prepared food products to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers worldwide.
The company procures avocados from California, Mexico and other growing regions around the world. Through its various operating facilitie...
Calavo Growers, Inc. (Calavo) provides value-added fresh food. The company’s expertise in marketing and distributing avocados, prepared avocado products, and other perishable foods allows it to deliver a wide array of fresh and prepared food products to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers worldwide.
The company procures avocados from California, Mexico and other growing regions around the world. Through its various operating facilities, the company sorts, packs, and/or ripens avocados, tomatoes and/or Hawaiian grown papayas, and processes and packages guacamole. The company distributes its products both domestically and internationally.
Segments
The company operates through two business segments: Grown and Prepared.
The Grown segment consists of fresh avocados, tomatoes and papayas.
The Prepared segment consists of guacamole sold at retail and foodservice as well as avocado pulp sold to foodservice.
Discontinued Operations
The company completed the sale of its Fresh Cut business and related real estate on August 15, 2024. The Fresh Cut business represents substantially all of the business of the Prepared segment other than the guacamole business, which was retained.
Grown
Calavo sources avocados from various locations—including California, Mexico, Peru, and Colombia—and distributes them to a diverse group of retail grocers, foodservice operators, club stores, mass merchandisers, food distributors, and wholesalers. Products are sold under the Calavo family of brand labels, as well as private labels. Many of the company’s customers seek a consistent, year-round supply from multiple sourcing locations, along with just-in-time deliveries tailored to their desired ripeness and a variety of packaging and display options. These needs favor large handlers like the company, who can leverage diverse sourcing relationships, value-added packaging and bagging capabilities, ripening assets, and a robust distribution infrastructure to serve large, nationwide accounts. Over time, the company has built strong, long-term customer relationships that form a solid foundation for its business.
In 2022, the United States Department of Agriculture (USDA) approved the export of Jalisco avocados to the United States. As such, the company sources fruit from both the Michoacán and Jalisco regions in Mexico. The company also sources avocados from other key growing regions, including Peru and Colombia.
Avocados delivered to the company’s packinghouses are graded, sized, packed, and cooled. Feedback from the company’s field managers is shared with its sales department to help develop sales strategies for its direct sales force.
To help ensure the safety and quality of its avocados, the company is subject to inspections by the USDA, the Mexican Secretary of Agriculture, Secretariat of Agriculture and Rural Development (SADER), and other regulatory authorities. The company has developed a range of value-added programs designed to provide products and services that address its customers' diverse needs. Key programs include:
Value-Added Ripening: Retailers require avocados that meet strict quality and ripeness standards. The company’s nationwide ripening infrastructure—featuring advanced technology and an experienced handling workforce—positions it to effectively meet those demands.
Value-Added Packaging: The company has introduced innovative packaging and display techniques to attract consumers, especially impulse buyers. These include bagging avocados and strategically displaying them within produce sections.
The company attributes its leadership position to its competitive sourcing strategies and the strong communication and service it maintains with its growers, driven by upper and middle management teams with decades of avocado experience. Additionally, the company’s diversified fresh product offerings, consistent product quality, and value-added programs give it a distinct advantage in serving retail and foodservice customers.
The company’s Grown business segment also markets and distributes other perishable food products, including tomatoes and papayas (Other Fresh Products). Tomatoes are primarily handled on a consignment basis, while papayas are managed through a pooling system, typically at a fixed fee per papaya delivered.
Prepared
Prepared segment focuses on the company’s prepared avocado products (guacamole) division. The company uses ultra-high-pressure technology, a cold pasteurization process, on all guacamole products to safeguard food without requiring preservatives. After processing, the company’s guacamole can be frozen for extended shelf life or shipped fresh to customers in the U.S. and internationally.
While most of the company’s prepared avocado products are produced at its Uruapan, Mexico facility, it occasionally partners with high-quality co-packers—utilizing similar ultra-high-pressure technology—to meet demand for retail and foodservice products.
The company’s prepared products include guacamole sold through retail and foodservice channels, as well as avocado pulp sold to foodservice customers. These products are marketed under Calavo-owned brands and through store-brand private label programs.
Both the company’s Grown and Prepared segments foster strong customer relationships by delivering high-quality products, driving innovation, offering year-round availability, and maintaining national distribution.
Patents and Trademarks
The company’s trademarks include the Calavo brand name and related logos. The company also utilizes the following trademarks in conducting its business: Avo Fresco, Bueno, Calavo Gold, Celebrate the Taste, El Dorado, Taste of Paradise, The First Name in Avocados, The Family of Fresh, ProRipeVIP, and RIPE NOW!.
Research and Development
The company’s total research and development costs for fiscal year 2024 (year ended October 31, 2024), included approximately $0.1 million.
Government Regulations
As a purchaser, manufacturer, distributor, marketer, and advertiser of food products, the company’s operations are subject to extensive regulation by various federal government agencies, including the U.S. Food and Drug Administration (the FDA), the United States Department of Agriculture (USDA) and the Federal Trade Commission, as well as state and local agencies, with respect to production processes, product attributes, packaging, labeling, storage and distribution. The company’s operations are subject to certain employment health and safety regulations, including those issued under the Occupational Safety and Health Act. The company’s packinghouse facilities and products are subject to periodic inspection by federal, state and local authorities, including the FDA and the California Department of Food and Agriculture, which oversees weights & measures compliance at its California facilities. All of the company’s the U.S. facilities are also in compliance with the FDA’s Food Safety Modernization Act. In addition, the company’s operations in Mexico are subject to the U.S. and Mexican regulations through the USDA-APHIS and the Mexican Secretary of Agriculture, Secretariat of Agriculture and Rural Development (SADER) primarily pertaining to phytosanitary regulations, certification regulation for the importation of Hass avocados to the United States.
As a large importer of perishable products in the U.S., Calavo was an early adopter of the U.S. Customs & Border Protection’s C-TPAT certification programs for monitoring and expediting all imports to the U.S.
As a purchaser and manufacturer of perishable agricultural commodities, the company is subject to, and compliant with, the USDA’s Perishable Agricultural Commodities Act. Certain agricultural commodities sold by Calavo are subject to additional specific government acts or regulations, including the Hass Avocado Promotion, Research and Information Act of 2000 for the company’s avocados and the federal suspension agreement guidelines which govern tomato imports to the U.S.
History
Calavo Growers, Inc. was founded in 1924.