Calavo Growers' purchase of production facility will benefit Renaissance Food Group

Santa Paula, Calif.-based Calavo Growers completed purchase of a production facility in Riverside, Calif., which the company says will further enhance its Renaissance Food Group LLC (RFG) and position the segment to serve its growing customer base across the southwestern United States.

Calavo Growers, a provider of avocados and value-added fresh food, said the facility, which totals approximately 128,000 square feet on about 11 acres, was previously owned and operated by affiliates of the former Fresh & Easy Neighborhood Markets. The company described the new facility as nearly “turnkey,” which will allow RFG to quickly expand capacity and meet growing demand among current and new customers for its fresh, value-added packaged fruit and vegetables, ready-to-eat salads and prepared foods offerings.The facility’s design allows for an efficient start up, optimal food-safety measures and quality production flow, according to the company.

“This best-in-class facility aligns with and extends our company’s strategic growth initiatives to build a leading market position in the refrigerated fresh packaged foods category,” said Calavo Chairman and CEO Lee E. Cole in a statement. “The new facility enables us to satisfy demand from several key accounts in southern California, while providing the platform for deeper market penetration across the Southwest, including southern Nevada, Arizona and Utah. Quick-turn, ‘just-in-time’ order fulfillment is a cornerstone of RFG’s operating success.”

The new Riverside facility follows the recent addition of a 209,000 square-foot production and distribution center near Jacksonville, Fla. and the new renovation and expansion of a 89,000 square-foot production facility in Houston, Texas. Calavo reported that it purchased the facility for $19.4 million through a variable interest entity created to effect a potential like-kind exchange under Section 1031 of the Internal Revenue Code.