Calavo Growers, Inc. operates in the avocado industry worldwide. The company engages in marketing and distributing 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 and Mexico. The company, through its various operating facilities, sorts, packs, and/or ripens avocados, tomatoes and/or Hawaiian grown papayas; processes and packages fresh cut fruit and vegetables, salads, wraps, sandwiches, fresh snacking products and various behind-the-glass deli items; and produces and packages guacamole and salsa. Segments The company has three business segments: Fresh Products, Calavo Foods, and RFG (Renaissance Food Group, LLC). 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 grouped as a homogenous pool on a weekly basis based on the variety, size, and grade. They are then graded, sized, packed, cooled and, frequently, ripened for delivery to customers. Avocados handled by the company are identifiable through packaging and the Calavo brand name sticker. The company also imports avocados from Mexico. The company’s strategy is to increase its market share of sourced avocados to all accepted marketplaces. The company typically purchases Mexican avocados from growers and packers located in Mexico. The company is subject to USDA and other regulatory inspections to ensure the safety and the quality of the fruit being delivered from Mexico. 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 ultra-high pressure technology equipment, which is designed to protect and safeguard its avocado and guacamole products without the need of preservatives. Sales in the U.S. and Canada are made principally through a commissioned nationwide broker network, which is supported by the company’s regional sales managers. RFG This segment produces, markets, and distributes nationally a portfolio of healthy fresh packaged food products for consumers through the retail channel, including national and regional supermarkets, club stores, mass merchandisers, convenience stores, and specialty/natural retailers. As a leader in refrigerated fresh packaged foods, RFG utilizes a network of company-operated and independently-operated USDA and organic certified fresh food facilities strategically located across the U.S. RFG products include fresh prepared fruit and vegetables, fresh prepared entrée salads, wraps, sandwiches and fresh snacking products, as well as ready-to-heat entrees and other hot bar and behind-the-deli glass meal and salad kits. RFG products are marketed under the Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials, as well as store-brand, private label programs. Patents and Trademarks The company’s trademarks include the Calavo and RFG brand name and related logos. The company 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. Compliance with Government Regulations As a manufacturer and marketer of processed avocado products, the company’s operations are subject to extensive 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. Advertising of the company’s products is also subject to regulation by the Federal Trade Commission, and the company’s 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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