CALAVO fails marketing goals

Calavo Growers (CVGW) has been added to the Hawaii Agriculture Blog “Hawaii Agriculture and Related Stocks Annual Charts” page to show the contrast of their lack of success in marketing fresh pineapple in California with the success of their stock performance.

Calavo Chairman, President and CEO Lee E. Cole on the favorable implications of the sales marketing and distribution agreement of Maui Gold Pineapple for Calavo

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.

calavao-vs-mlp
As opposed to Maui Land and Pineapple Company’s Inc (MLP) filed Quarterly Report (10-Q) for the period ended 2009-06-30.

Revenues for the Agriculture segment decreased by 14%, or $749,000, from $5.3 million for the second quarter of 2008 to $4.5 million for the second quarter of 2009, primarily due to a reduction in pineapple juice sales volume and lower average prices for fresh pineapple. Pineapple juice sales represented approximately 5% of the Agriculture segment revenues in the second quarter of 2009 compared to approximately 13% of Agriculture segment revenues in the second quarter of 2008. The Agriculture segment reported an operating loss of $5.0 million for the second quarter of 2009 compared to an operating loss of $4.6 million for the second quarter of 2008. The operating loss for the second quarter of 2009 includes a charge of $1.9 million representing an adjustment to the fair value less selling costs of our property in Kahului that includes our fresh fruit processing plant. The Kahului property is currently held for sale.

Calavo Growers, Inc. Comments on the Significance of Maui Pineapple Company Ltd. Distribution Agreement – Business News – redOrbit

 

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 GoldĀ® 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.

Calavo Growers, Inc. Comments on the Significance of Maui Pineapple Company Ltd. Distribution Agreement – Business News – redOrbit