Posted at 5:10 a.m., Monday, November 5, 2007
Calavo comments on Maui Gold's distribution system
News Release
SANTA PAULA, Calif.-- Calavo Growers, Inc. (Nasdaq:CVGW), a worldwide leader in packing and distributing of fresh and processed avocados and other perishable food products, today commented on the strategic benefits it anticipates from the addition of Maui GoldŽ pineapples to its distribution system.
On Nov. 2, 2007, Maui Land and Pineapple Co. (AMEX:MLP) announced that its agricultural subsidiary, Maui Pineapple Company Ltd., entered into an agreement with Calavo. Under terms of that agreement, beginning Dec. 1, 2007, Calavo will sell, market and distribute Maui Pineapple Company's Maui Gold fresh product throughout the continental United States and Canada.
The following is a statement from Calavo Chairman, President and CEO Lee E. Cole on the favorable implications of the agreement for the company:
"Our agreement with Maui Pineapple Company is significant on many levels—strategic, operational and financial.
"First, we anticipate that sales of Maui Gold fresh pineapples will contribute $25-30 million in revenues to Calavo's top line in fiscal 2008, as well as become immediately accretive to earnings.
"Second, the addition of Maui Gold pineapples to our fresh-product lineup is a strong, natural complement to Calavo's market leadership in Hawaiian-grown Kapoho Solo papayas. In addition, we sell a range of other tropical-produce offerings from the islands. I am confident to say that, through this significant expansion into the pineapple category, Calavo will immediately become the largest distributor and marketer of fresh commodity produce grown in Hawaii, and am duly proud of the company's economic contribution to the islands.
"The Maui Gold product is the sweetest and best-tasting fresh pineapple available anywhere in the world. As such, this outstanding product is ideally suited to join the Calavo line. With our company's commitment to and brand reputation for delivering the highest-quality fresh and processed offerings, the Maui Gold pineapple is consistent with Calavo's threshold for excellence. We have long stated that we're committed to growth, diversification and expansion, but will do so only when the right opportunities afford themselves. Maui Gold not only meets and exceeds this criterion, but exemplifies the sort of high-potential opportunity we seek.
"Calavo has built a strong infrastructure—including a robust sales organization and investment in distribution capacity, specifically the national reach of our value-added depots—that provides a solid foundation for fresh product diversification. We are well positioned to fold in additional products that can extend the Calavo brand. Along with the recent announcement of expansion into branded fresh tomatoes, we are casting the footprint for a larger, highly efficient and more diversified agribusiness enterprise."
About Calavo Growers, Inc.
Calavo Growers, Inc. is the worldwide leader in the procurement and marketing of fresh avocados and other perishable foods, as well as the manufacturing and distribution of processed avocado products. Founded in 1924, Calavo's expertise in marketing and distributing avocados, processed avocados, and other perishable products enables it to serve food distributors, produce wholesalers, supermarkets and restaurants on a global basis.
Safe Harbor Statement
This news release contains statements relating to future events and results of Calavo (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: increased competition, conducting substantial amounts of business internationally, pricing pressures on agricultural products, adverse weather and growing conditions confronting avocado growers, new governmental regulations, as well as other risks and uncertainties detailed from time to time in the company's Securities and Exchange Commission filings, including, without limitation, the company's Annual Report on Form 10-K for the year ended October 31, 2006. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
