Calavo Growers is like the Dole Food Company for avocados and fresh-prepared foods.

Alternatively, think of Calavo Growers as the "Chiquita Brands International" of avocados, but with a significant prepared fresh foods division.

• Fresh Avocados: Sourcing, packing, and distributing premium fresh avocados.
• Prepared Fresh Food: A range of value-added products including fresh-cut fruits, vegetables, and refrigerated guacamole, salsa, and sandwich products.
• Other Fresh Produce: Distribution of various other fresh produce items such as tomatoes and papayas.

Calavo Growers (symbol: CVGW) primarily sells its products to other businesses (B2B) rather than directly to individual consumers. Their customer base is diversified across various channels, and according to their financial reports (e.g., 2023 10-K), no single customer accounted for 10% or more of their consolidated net sales. This indicates a broad distribution network rather than reliance on a few dominant buyers.

However, their major customers fall into the following categories of companies:

• Retail Grocery Chains: These companies purchase Calavo's fresh produce (especially avocados and tomatoes) and prepared food products (like guacamole, salsas, and dips) for sale directly to consumers in their supermarkets and online platforms. Examples of major chains that Calavo likely supplies include:
  • Kroger Co. (symbol: KR)
  • Walmart Inc. (symbol: WMT)
  • Target Corporation (symbol: TGT)
  • Albertsons Companies, Inc. (symbol: ACI)
  • Costco Wholesale Corporation (symbol: COST)
• Food Service Distributors: These companies distribute fresh and prepared foods to a vast array of clients, including restaurants, hotels, schools, corporate cafeterias, and other institutional customers. Calavo's products, particularly avocados, fresh produce, and prepared avocado products, are common offerings in the food service sector. Examples include:
  • Sysco Corporation (symbol: SYY)
  • US Foods Holding Corp. (symbol: USFD)
• Wholesale Produce Distributors: These distributors act as intermediaries, buying large volumes of fresh produce from growers like Calavo and then supplying it to smaller retailers, local food service operators, and other specialized buyers. While many specific companies in this category are regional or private, they play a crucial role in Calavo's overall distribution network.

Lee E. Cole, President and Chief Executive Officer

Lee E. Cole has a long history with Calavo Growers, serving as President and Chief Executive Officer from 1999 until his retirement in January 2020. He returned to lead the company as President and CEO effective March 13, 2023. Cole also served as a Director of Calavo for 39 years and was Chairman of the Board for 28 of those years. He is credited with bringing Calavo into the public market and developing it into one of the largest avocado companies globally.

James Snyder, Chief Financial Officer

James Snyder became Calavo Growers' Chief Financial Officer effective December 2, 2024. Prior to this appointment, Snyder had a significant tenure with Calavo, serving for over 18 years as Corporate Controller and Chief Accounting Officer from 2001 to 2020. Before rejoining Calavo, he was the Corporate Controller and Chief Accounting Officer at Gem-Pack Berries since April 2024, and held a similar role at Nano Banc of Irvine from 2020 to 2024. Snyder began his career at Deloitte, where he spent seven years in various audit functions.

Mike Browne, EVP Sales & Operations

Mike Browne serves as the Executive Vice President of Sales & Operations for Calavo Growers. He was previously the Vice President of Fresh Operations.

Ron Araiza, EVP Calavo Foods Division

Ron Araiza holds the position of Executive Vice President for the Calavo Foods Division.

Dionisio Ortiz, Vice President Calavo de México

Dionisio Ortiz is the Vice President of Calavo de México.

Calavo Growers (CVGW) operates in several key addressable markets related to fresh produce and prepared foods. The primary markets for their products and services include:

• Avocados (Fresh and Prepared Avocado Products):

  • The global avocado market size was valued at USD 15.83 billion in 2023 and is projected to reach USD 26.04 billion by 2030. Other estimates for the global avocado market include USD 19.2 billion in 2023, growing to USD 47.54 billion by 2032, and an estimated USD 19.56 billion in 2025, projected to reach USD 26.54 billion by 2030.
  • North America held a significant share of the global avocado market, accounting for 45.0% in 2022 and 34.5% of the revenue share in 2024. It is projected to command 48.6% of the global market share in 2025.
  • The U.S. avocado market was valued at US$4.136 billion in 2025 and is expected to reach US$5.593 billion by 2030. Another report estimated the U.S. avocado market size at USD 3,685.8 million in 2024, expected to reach USD 6,091.9 million by 2035.

• Fresh Produce (Fruits and Vegetables, including tomatoes and papayas):

  • The global fresh produce market size was valued at USD 3,537 billion in 2024 and is anticipated to increase from USD 3,707 billion in 2025 to an estimated USD 5,653 billion by 2034. Other estimates for the global fresh fruits & vegetables market include USD 854.42 billion in 2024, projected to reach USD 1,274.25 billion by 2033, and USD 893.72 billion in 2024, projected to reach USD 1339.64 billion by 2034.
  • The global fresh fruit market was valued at USD 570.9 billion in 2022 and is projected to reach USD 757.7 billion by 2030.
  • The global fresh vegetables market was valued at USD 650.2 billion in 2022 and is projected to reach USD 895.2 billion by 2032.
  • The U.S. fruits and vegetables market size was valued at USD 96.26 billion in 2023 and is anticipated to exceed USD 142.71 billion by 2033. The U.S. fresh vegetables market is projected to reach USD 85.92 billion by 2032.

• Prepared Foods (including fresh-cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads, and snacks):

  • The global prepared meals market size was valued at USD 178.83 billion in 2024 and is projected to grow to USD 291.27 billion by 2032. Other valuations for the global prepared meals market include USD 168.25 billion in 2023, expected to reach USD 334.09 billion by 2033, and USD 186.74 billion in 2024, projected to reach USD 521.53 billion by 2035.
  • North America held the largest market share for prepared food in 2024, at 40.9%.
  • The U.S. prepared meals market generated total revenues of $52.03 billion in 2023 and is forecast to reach $77.25 billion by the end of 2028. The U.S. ready meals market is expected to reach USD 58.7 billion by 2030 and USD 541.32 billion by 2035. The U.S. ready-to-eat food market is projected to reach USD 63.41 billion by 2030.

Calavo Growers (NASDAQ: CVGW) is strategically positioning itself for future revenue growth over the next 2-3 years by focusing on its core avocado and guacamole businesses, implementing diversified growth strategies, and leveraging its supply chain capabilities.

The key drivers of anticipated revenue growth include:

• Increased Avocado and Guacamole Sales Volumes: Calavo anticipates double-digit growth in both avocado and guacamole sales volumes. This growth is a central component of their strategy to create meaningful value for shareholders in fiscal 2025 and beyond. The company's Grown segment, which includes avocados, has shown robust performance, with net sales increasing by 13.3% in Q3 2024 and avocado volumes increasing by 10% in Q4 2024. The Prepared segment also experienced significant growth in Q3 2025, with sales volume increasing by approximately 35%.
• New Customer Acquisition and Deeper Penetration within Existing Accounts: Calavo's confidence in future growth is partly attributed to initiatives aimed at acquiring new customers and increasing its market share within existing client relationships.
• Product Innovations: The company plans to introduce new product innovations, particularly within its guacamole business, which are expected to contribute to revenue expansion.
• Expanded Global Sourcing Strategies: Calavo is focused on broadening its global sourcing strategies to ensure a robust and scalable supply chain, which will support increased sales volume and overall revenue growth. The scalability of their supply chain is seen as a competitive advantage in achieving sales volume growth.
• Renewed Focus on Core Businesses: Following the divestiture of its Fresh Cut business in August 2024 for $83.0 million, Calavo has retired its remaining debt and intends to deploy the generated cash by investing in its core avocado and guacamole operations. This strategic refocus is expected to enhance financial performance and drive future growth.

Share Repurchases

• Calavo Growers authorized a share repurchase program of up to $25 million of its common stock on March 18, 2025.
• The share repurchase program is in effect until March 18, 2027.
• As of April 30, 2025, no shares have been repurchased under this program.

Share Issuance

• Issuance of common stock occurred in connection with stock-based compensation, with a stock-based compensation expense of $878,000 for the nine months ended July 31, 2025.
• The number of outstanding shares of common stock was 17,837,172 as of May 31, 2025, and 17,853,323 as of August 31, 2025.

Inbound Investments

• On June 11, 2025, Calavo Growers received a non-binding proposal to acquire all outstanding shares for $32.00 per share, comprising a mix of stock and cash.
• This proposed acquisition would value the company at approximately $571 million.

Outbound Investments

• Calavo Growers completed the sale of its Fresh Cut business and related real estate on August 15, 2024, for $83.0 million.

Capital Expenditures

• Cash used in investing activities, primarily for purchases of property, plant, and equipment, amounted to $0.3 million for the three months ended January 31, 2025.
• Cash used in investing activities for purchases of property, plant, and equipment was $0.4 million for the six months ended April 30, 2025.
• For the nine months ended July 31, 2025, cash used in investing activities, mainly for property, plant, and equipment purchases, was $1.1 million.