Mission Produce's U.K. Hub Gains Traction: Is Europe the Next Big Bet?

Mission Produce, Inc.’s AVO growing momentum in the U.K. marks a strategic turning point for the company as it extends its avocado leadership into high-potential international markets. After years of building a sophisticated global sourcing and distribution network, AVO is now leveraging its U.K. ripening and distribution facility as a gateway to broader European expansion. With European per-capita avocado consumption steadily rising and retailers seeking dependable, year-round supply partners, the company’s presence in the region positions it well to capture the next wave of category growth.

The U.K. operation has started demonstrating meaningful traction, driven by stronger customer penetration and improved facility utilization. Mission Produce is applying its proven U.S. playbook, global sourcing optimization, year-round programming and advanced category management to support major European retailers. These capabilities are filling a key gap in the market, where consistency, quality and reliability remain top priorities. In third-quarter fiscal 2025, a 37% surge in European sales underscores how strongly Mission Produce’s integrated model is resonating with retailers looking to upgrade and stabilize their avocado programs.

As supply from Peru and Mexico remains abundant, the company sees Europe as an attractive outlet for incremental volume and long-term customer development. While the U.K. serves as the operational anchor, the broader European landscape presents larger-scale opportunities, whether through deeper retail partnerships or potential expansion of distribution infrastructure. With demand rising and Mission Produce’s global platform gaining recognition, Europe could emerge as the company’s next major growth engine beyond North America.

AVO Faces Stiff Competition From CTVA & DOLE

Corteva, Inc. CTVA and Dole plc DOLE continue to play pivotal roles in the global agriculture and fresh produce markets, each executing strategies that reinforce their competitive strengths.

Corteva is sharpening its industry leadership by pairing advanced seed technologies with more sustainable crop protection solutions. The company is driving momentum through its growing biologicals portfolio and digital ag tools, which help farmers improve yields even as they face climate volatility and regulatory pressures. With disciplined cost control and a robust pipeline of next-generation seed traits and environmentally conscious crop protection products, Corteva is offsetting softer commodity pricing and rising input costs. This combination of innovation and operational focus positions the company to meet the rising global demand for resilient, sustainable food production.

Dole is positioning itself as a global leader in fresh produce by leveraging its broad product portfolio, extensive distribution network and ongoing efficiency initiatives. The company is sharpening its focus on operational discipline, cost optimization and supply chain resilience to navigate persistent industry challenges, including inflationary pressures and logistics constraints. At the same time, Dole is investing in higher-growth categories and value-added offerings, such as fresh-cut produce and convenience-driven solutions, to meet shifting consumer preferences for healthier, ready-to-eat options.

AVO’s Price Performance, Valuation & Estimates

Shares of Mission Produce have gained 9.8% in the last six months against the industry’s decline of 5.3%.

From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 24.44X, significantly above the industry’s average of 12.65X.

The Zacks Consensus Estimate for AVO’s fiscal 2025 and 2026 earnings suggests a year-over-year decline of 9.5% 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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