Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to food distributors, produce wholesalers, supermarkets, convenience stores, and restaurants on a worldwide basis. The company procures avocados principally from California, Mexico, and Chile. The company, through its various operating facilities, sorts, packs, and/or ripens avocados, tomatoes, and/or Hawaiian grown papayas. It also produces salsa and prepares ready-to-eat produce and deli products. The company distributes its products both domestically and internationally. Segments The company operates through three business segments: Fresh Products, Calavo Foods, and Renaissance Food Group, LLC (RFG). Fresh Products This segment sells avocados to a group of supermarket chains, wholesalers, food service and other distributors, under the Calavo family of brand labels, as well as private labels. California avocados delivered to the company’s packinghouses are graded, sized, packed, cooled, and ripened for delivery to customers. The company imports avocados from Mexico and Chile. It also handles avocados from Chile, majority of which are on a consignment basis with its growers. Perishable food products include various commodities, including tomatoes, papayas, and pineapples. The majority of the company’s sales are generated from tomatoes and papayas. Calavo Foods This segment procures avocados, processes avocados into various guacamole products, and distributes the processed product to the company’s customers. The company also prepares various fresh salsa products. Customers include both food service industry and retail businesses. The company utilizes high pressure technology equipment, which is designed to ‘cold pasteurize’ its guacamole products. Sales in the U.S. and Canada are made principally through a commissioned nationwide broker network, which is supported by its regional sales managers. The company owns a 65 percent ownership interest in Calavo Salsa Lisa, LLC, which owns Lisa’s Salsa Company (LSC). LSC is a regional producer in the upper Midwest of Salsa Lisa refrigerated salsas. RFG This segment produces, markets, and distributes nationally a portfolio of products for consumers through the retail channel. RFG products range from fresh-cut fruit, ready-to-eat vegetables, recipe-ready vegetables and deli meat products. RFG sells under the labels of Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials to a range of customers. Agreements The company, through its wholly owned subsidiary, Calavo Inversiones (Chile) Limitada, has a joint venture agreement with Exportadora M5, S.A. for the purpose of selling and distributing Chilean sourced avocados, as well as other perishable commodities. Such joint venture operates under the name of Calavo de Chile. Dispositions In 2012, the company sold its interest in Maui Fresh International, LLC, which markets, sells, and distributes fresh produce at the Los Angeles wholesale produce market. Strategy The company’s strategy is to increase its market share of sourced avocados to all accepted marketplaces. Patents and Trademarks The company’s trademarks include the Calavo and RFG brand name and related logos. It also utilizes various trademarks in conducting its business, such as Avo Fresco, Bueno, Calavo Gold, Calavo Salsa Lisa, Salsa Lisa, Celebrate the Taste, El Dorado, Fresh Ripe, Select, Taste of Paradise, The First Name in Avocados, Tico, Mfresh, Maui Fresh International, Triggered Avocados, ProRipeVIP, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials. FreshRealm, LLC has filed two patents, one for a refrigerated re-usable shipping container the other for a crowdsourced delivery network called ‘co-drop’. Research and Development The company’s total research and development costs were approximately $1.5 million for the year ended October 31, 2013. Compliance with Government Regulations As a manufacturer and marketer of processed avocado products, the company’s operations are subject to regulation by various federal government agencies, including the Food and Drug Administration, the 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. In addition, advertising of its products is subject to regulation by the Federal Trade Commission, and its operations are subject to certain health and safety regulations, including those issued under the Occupational Safety and Health Act. History Calavo Growers, Inc. was founded in 1924.
calavo growers inc (CVGW:NASDAQ GS)
1141A Cummings Road
Santa Paula, CA 93060
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