Calavo Growers, Inc. (Nasdaq-GS: CVGW) (“Calavo”
or the “Company”), a global avocado-industry leader and provider of
value-added fresh food, today announced plans to reorganize its
business to execute Project Uno integration efforts and better
serve customers while improving efficiencies and cost savings.
The Company is now organized into two reporting segments, Grown
and Prepared. The Grown segment will consist of fresh avocados,
tomatoes and papaya. The Prepared segment will comprise all other
products including fresh cut fruits and vegetables, ready-to-eat
sandwiches, wraps, salads and snacks, guacamole, and salsa sold at
retail and food service as well as avocado pulp sold to food
service. The two segments each will be led by a Senior Vice
President/General Manager responsible for sales, earnings,
strategy, international growth, customer fulfillment,
grower/supplier relations and new product development.
“The new organizational structure will bring clarity to the
decision-making process and increase speed of execution to capture
efficiencies and generate growth,” said Brian W. Kocher, Calavo’s
President and Chief Executive Officer. “By aligning product
fulfillment responsibilities with P&L management, we will
better serve our customers with a cost-effective and market-focused
organization.”
In addition to the Grown SVP/General Manager, Rob Wedin, and the
interim Prepared SVP/General Manager, Ron Araiza, reporting to
Kocher will be leaders with responsibilities for compliance and
policy making who have companywide reach and influence.
- Chief Financial Officer Mariela Matute
- Chief Human Resources Officer Graciela Montgomery
- Vice President Shared Supply Chain to be named
- Vice President Communications, Marketing & ESG Thomas
Federl
- Vice President Calavo de Mexico Dionisio Ortiz
- Vice President Jalisco Operations Eloy Hintz
Matute and Montgomery, who joined Calavo in October, will remain
in their positions. Federl joined Calavo on March 28, and Hintz
joined April 4. The other leadership positions are in the process
of being filled.
“We have moved quickly to establish an efficient operating
structure and fill these roles while ensuring we get the right
leaders for success,” Kocher said. “By finding great leaders,
clarifying their responsibilities, identifying accountabilities and
arming the organization with processes and services to execute, we
will position Calavo for long-term profitable growth.”
The reorganization is part of Calavo’s Project Uno, a profit
improvement project, that includes pricing initiatives, SKU
rationalization, unified procurement, consolidated freight and
optimizing administrative functions across all business units. The
company recently announced a brand refresh, which introduced the
new Calavo brand identity and logo and combined all business units
under One Calavo Brand.
As a result of the reorganization, the position of Chief
Operations Officer, among other roles in the organization, is being
eliminated. Anticipated first year savings in Selling, General and
Administrative expenses associated with reduced positions are
expected to offset the costs associated with the reorganization and
investment in talent to fill the new roles. Ongoing cost savings
are expected to amount to over $2 million per year.
About Calavo Growers, Inc.Calavo Growers, Inc.
(Nasdaq: CVGW) is a global leader in quality produce, including
avocados, tomatoes and papayas, and a pioneer of healthy fresh-cut
fruit, vegetables and prepared foods. Calavo products are sold
under the trusted Calavo brand name, proprietary sub-brands,
private label and store brands.
Founded in 1924, Calavo has a rich culture of constant
innovation, sustainable practices and market growth. The company
now serves retail grocery, foodservice, club stores, mass
merchandisers, food distributors and wholesalers worldwide. Calavo
is headquartered in Santa Paula, Calif., with processing plants and
packing facilities throughout the U.S. and Mexico. Learn more about
The Family of Fresh™ at calavo.com.
Forward-Looking StatementsThis press 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, that involve risks, uncertainties
and assumptions. These statements include, but are not limited to,
statements relating to filling leadership positions, anticipated
initial and ongoing cost savings, anticipated costs associated with
the reorganization, long-term growth and profitability positioning.
These statements are based on our current expectations and are not
promises or guarantees. If any of the risks or uncertainties ever
materialize or the assumptions prove incorrect, the results of
Calavo may differ materially from those expressed or implied by
such forward-looking statements and assumptions. Risks and
uncertainties that may cause our actual results to be materially
different from any future results expressed or implied by the
forward-looking statements include, but are not limited to, the
following: the impact of the COVID-19 pandemic on our business,
results of operations, and financial condition, including, but not
limited to, disruptions in the manufacturing of our products and
the operations of the related supply chains supporting our ability
to deliver our products to consumers, impacts on our employees and
uncertainty regarding our ability to implement health and safety
measures for our employees, uncertainties regarding consumer demand
for our products, impact on our food service customers, increased
costs, the impact of governmental trade restrictions imposed as a
result of COVID-19 and the possible adverse impact of COVID-19 on
our goodwill and other intangible assets; our ability to raise
prices, particularly in our RFG and Foods segments, to offset
increase costs of goods sold, and the impact of such price
increases on future net sales; seasonality of our business;
sensitivity of our business to changes in market prices of avocados
and other agricultural products and other raw materials including
fuel, packaging and paper; potential disruptions to our supply
chain; risks associated with potential future acquisitions,
including integration; potential exposure to data breaches and
other cyber-attacks on our systems or those of our suppliers or
customers; dependence on large customers; dependence on key
personnel, including personnel that have not yet been hired, and
the ability of our future management team to work together
successfully; potential for labor disputes; reliance on co-packers
for a portion of our production needs; competitive pressures,
including from foreign growers; risks of recalls and food-related
injuries to our customers; changing consumer preferences; the
impact of environmental regulations, including those related to
climate change; our ability to develop and transition new products
and services and enhance existing products and services to meet
customer needs; risks associated with doing business
internationally (including possible restrictive U.S. and
foreign governmental actions, such as restrictions on transfers of
funds and COVID-19 and trade protection measures such as
import/export/customs duties, tariffs and/or quotas and currency
fluctuations); risks associated with receivables from, loans to
and/or equity investments in unconsolidated entities; volatility in
the value of our common stock; the impact of macroeconomic trends
and events; and the resolution of pending investigations, legal
claims and tax disputes, including an assessment imposed by the
Mexican Tax Administrative Service (the “SAT”) and our defenses
against collection activities commenced by the SAT. For a further
discussion of these risks and uncertainties and other risks and
uncertainties that we face, please see the risk factors described
in our most recent Annual Report on Form 10-K filed with the
Securities and Exchange Commission and any subsequent updates that
may be contained in our Quarterly Reports on Form 10-Q and other
filings with the Securities and Exchange Commission.
Forward-looking statements contained in this press release are made
only as of the date of this press release, and we undertake no
obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or
otherwise.
Media Contact : |
Investor Contact: |
Thomas Federl, VP Communications,
Marketing & ESG |
Julie Kegley, SVP |
Calavo Growers, Inc. |
Financial Profiles, Inc. |
Thomas.Federl@calavo.com |
calavo@finprofiles.com |
843-801-4174 |
310-622-8246 |
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