Mission Produce Expands Into Prepared Foods Following Calavo Acquisition

Mission Produce, Inc. (AVO) has entered the processed avocado and value-added prepared foods sector following its acquisition of Calavo Growers. In the third quarter of fiscal 2026, the newly formed Prepared Foods unit became a separate reporting segment, delivering $15.5 million in revenue and $0.2 million in adjusted EBITDA during its initial post-acquisition reporting period.

The acquisition broadens Mission Produce beyond whole avocados into convenient items such as packaged guacamole. By blending Calavo's manufacturing capabilities with Mission's worldwide sourcing network, the company aims to diversify its offerings. The broader industry is seeing similar innovation pushes, with Corteva, Inc. (CTVA) expanding higher-value specialty crop ingredients and Dole plc (DOLE) expanding fresh-cut fruit and meal solutions. Over the past three months, Mission Produce shares fell 11.2%, outperforming its industry's 47.3% decline.

Management is working to optimize manufacturing capacity at an existing facility in Mexico, boost plant throughput, and deepen retail and foodservice relationships. Analysts expect fiscal 2026 earnings to drop 17.7% before rebounding 29.2% in fiscal 2027. Investors will watch whether manufacturing efficiency gains and international sales expansion can turn Prepared Foods into a key contributor to long-term profitability.