Calavo to market Maui Gold pineapples
Calavo to market Maui Gold pineapples
Calavo Growers Inc. has entered into an agreement with the Maui Land & Pineapple Co. to market and sell the firm's proprietary Maui Gold pineapple throughout the continental United States and Canada.
The agreement is effective on Dec. 1, but the firm will not officially close its Maui Pineapple Co. office in Northern California until Dec. 31, according to Gerry Watts, vice president and general manager. At that point, the Northern California sales and marketing team, including Sales Manager Howard Nager, will be let go.
Mr. Watts said that the decision to switch the sales and marketing effort to Calavo had two basic strategic components. "We are going to have 1 million more cartons to sell in 2008, and we wanted to expand our reach and tie-in to the sales opportunities offered by a multiple-commodity company," he said.
The Maui Pineapple executive said that there are also operational synergies that can be achieved by using Calavo's well-established distribution system. "We believe that operationally, we will be able to cut costs," Mr. Watts said.
He said that the Maui Gold pineapple will continue to be promoted as a specialty item for high-end customers. Currently, the majority of the production is sold on the West Coast, and Mr. Watts said that this will continue to be the case, although he expects Calavo to find new customers as well.
For the 2008 season, Maui Pineapple expects to sell 2.5 million to 3 million cartons of Maui Gold pineapples in the continental United States.
"This agreement brings significant marketing, sales and logistical power to our pineapple business," said Mr. Watts. "Calavo's growing presence in the tropical and specialty produce sector combined with their modern warehousing and distribution capabilities will bring significant economies to our mainland operations."
Calavo, a longtime and significant player in the California avocado business, diversified its commodity list in 2003 with the acquisition of Maui Fresh International, which is a major supplier of papayas and other tropical fruit.
In a company-issued press release, Lee Cole, Calavo's chairman, president and chief executive officer, said, "We are delighted to assume mainland marketing and distribution functions for Maui Pineapple Company. The addition of Maui Gold pineapple is an ideal fit with Calavo and keeps with our brand reputation for quality while furthering a disciplined diversification strategy of adding complementary products to our lineup of fresh offerings. As someone who is a considerable pineapple consumer, I believe Maui Gold is the best-tasting pineapple available in today's market."
Maui Pineapple Co. will continue its sales and marketing operations in the mid-Pacific with a focus on growing consumption within the state of Hawaii and in select Asian markets. The "Maui Gold" brand was introduced in 2005, and has seen fresh fruit sales triple with demand currently outpacing supply, according to the company press release.
Calavo will handle sales of the pineapples from its Southern California headquarters in Santa Paula.
Mr. Nager said that he has enjoyed his association with Maui Pineapple and expects to stay in the produce industry when he begins his job search.
"I have been on the sales and marketing end of the business during the past 25 years in the produce industry, and that is where I expect to stay," he said. "I haven't yet sat down and decided exactly what I want to do, but I do want to stay in the produce industry."
During his produce career, Mr. Nager has worked with several tropical fruit companies including Dole, Del Monte Fresh Produce and Pacific Fruit. He also worked with Sunsweet Growers for the five years immediately prior to joining Maui Pineapple in 2003.
The agreement is effective on Dec. 1, but the firm will not officially close its Maui Pineapple Co. office in Northern California until Dec. 31, according to Gerry Watts, vice president and general manager. At that point, the Northern California sales and marketing team, including Sales Manager Howard Nager, will be let go.
Mr. Watts said that the decision to switch the sales and marketing effort to Calavo had two basic strategic components. "We are going to have 1 million more cartons to sell in 2008, and we wanted to expand our reach and tie-in to the sales opportunities offered by a multiple-commodity company," he said.
The Maui Pineapple executive said that there are also operational synergies that can be achieved by using Calavo's well-established distribution system. "We believe that operationally, we will be able to cut costs," Mr. Watts said.
He said that the Maui Gold pineapple will continue to be promoted as a specialty item for high-end customers. Currently, the majority of the production is sold on the West Coast, and Mr. Watts said that this will continue to be the case, although he expects Calavo to find new customers as well.
For the 2008 season, Maui Pineapple expects to sell 2.5 million to 3 million cartons of Maui Gold pineapples in the continental United States.
"This agreement brings significant marketing, sales and logistical power to our pineapple business," said Mr. Watts. "Calavo's growing presence in the tropical and specialty produce sector combined with their modern warehousing and distribution capabilities will bring significant economies to our mainland operations."
Calavo, a longtime and significant player in the California avocado business, diversified its commodity list in 2003 with the acquisition of Maui Fresh International, which is a major supplier of papayas and other tropical fruit.
In a company-issued press release, Lee Cole, Calavo's chairman, president and chief executive officer, said, "We are delighted to assume mainland marketing and distribution functions for Maui Pineapple Company. The addition of Maui Gold pineapple is an ideal fit with Calavo and keeps with our brand reputation for quality while furthering a disciplined diversification strategy of adding complementary products to our lineup of fresh offerings. As someone who is a considerable pineapple consumer, I believe Maui Gold is the best-tasting pineapple available in today's market."
Maui Pineapple Co. will continue its sales and marketing operations in the mid-Pacific with a focus on growing consumption within the state of Hawaii and in select Asian markets. The "Maui Gold" brand was introduced in 2005, and has seen fresh fruit sales triple with demand currently outpacing supply, according to the company press release.
Calavo will handle sales of the pineapples from its Southern California headquarters in Santa Paula.
Mr. Nager said that he has enjoyed his association with Maui Pineapple and expects to stay in the produce industry when he begins his job search.
"I have been on the sales and marketing end of the business during the past 25 years in the produce industry, and that is where I expect to stay," he said. "I haven't yet sat down and decided exactly what I want to do, but I do want to stay in the produce industry."
During his produce career, Mr. Nager has worked with several tropical fruit companies including Dole, Del Monte Fresh Produce and Pacific Fruit. He also worked with Sunsweet Growers for the five years immediately prior to joining Maui Pineapple in 2003.
