AVO Beyond Avocados: Can Mangoes & Blueberries Drive Future Growth?

Mission Produce, Inc. AVO, long synonymous with avocados, is expanding its fruit basket and its ambitions. After years of building a world-class global sourcing and distribution network for avocados, the company is now applying that same disciplined playbook to high-growth adjacent categories such as mangoes and blueberries. This strategic diversification is more than a hedge against market volatility; it is a natural evolution for a company that has mastered perishable logistics and category leadership. As AVO’s avocado segment matures, these new crops are emerging as the next potential growth engines, leveraging the company’s infrastructure, global reach and reputation for quality.

Mangoes mark the first phase of Mission Produce’s diversification strategy. The company is positioning itself as a reliable, year-round mango supplier in North America, a rarity in this fragmented market. Leveraging its integrated supply chain and strong retail ties, Mission Produce is ensuring consistency in pricing, supply and packaging. Rather than heavy capital spending, it is pursuing an asset-light model built on partnerships with established growers, enabling fast and profitable scaling as demand for tropical fruit grows.

Blueberries, meanwhile, present a production-led growth avenue. Mission Produce has expanded to over 700 hectares of acreage, up about 25% year over year, with a goal of reaching 1,000 hectares. Yield gains and innovative pruning strategies are extending the harvest season, driving strong momentum as blueberry sales nearly tripled this year. Though still small compared to avocados, mangoes and blueberries are fast emerging as Mission Produce’s next growth pillars, positioning it to evolve from an avocado specialist into a diversified global produce leader.

AVO Faces Stiff Competition From CTVA & FDP

Corteva, Inc. CTVA and Fresh Del Monte Produce Inc. FDP remain influential players in the global agriculture and fresh produce sectors, each advancing distinct strategies to strengthen their competitive edge.

Corteva is reinforcing its leadership by blending advanced seed genetics with sustainable crop protection innovations. The company is accelerating growth through its expanding biologicals portfolio and digital farming solutions, helping growers boost productivity amid climate shifts and regulatory headwinds. Its focus on cost discipline and a strong pipeline of next-generation seed traits and eco-friendly protection products is cushioning the impact of softer commodity markets and higher input costs. By combining research-led innovation with operational rigor, Corteva is positioning itself at the forefront of sustainable agriculture and global food security.

Fresh Del Monte, meanwhile, is adapting to shifting consumer preferences by expanding its value-added portfolio and driving efficiency through technology and sustainability initiatives. The company is investing in automation, renewable energy and partnerships to enhance profitability across its fresh and prepared foods segments. Robust demand for fresh-cut and convenience products highlights its ability to meet evolving lifestyles, favoring healthy, ready-to-eat options. Despite cost and supply chain pressures, Fresh Del Monte’s integrated model and continuous innovation are supporting resilient margins and sustaining its leadership in the global fresh produce industry.

AVO’s Price Performance, Valuation & Estimates

Shares of Mission Produce have gained 19.5% in the last six months against the industry’s decline of 5.8%.

From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 26.23X, significantly above the industry’s average of 12.40X.

The Zacks Consensus Estimate for AVO’s fiscal 2025 and 2026 earnings suggests a year-over-year decline of 9.4% and 28.3%, respectively. The estimates for fiscal 2025 and 2026 have been stable in the past 30 days.

AVO stock currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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