DAVY VIEW

Over the past decade, the avocado has transformed itself from a banal fruit with lipophobic connotations (once banned by Weight Watchers) into a global superfood and staple of millennial diets. Consumption growth has been underpinned by the super cycle in health and wellness and astute social marketing – the latter expressing the nutrient richness and versatility of the product. The IPO of Mission Produce (Mission) provides a lens into this on-trend produce category and gives another valuation barometer for Total Produce (TP). Interestingly, akin to TP, Mission’s operating model has evolved from asset-light distribution to vertical integration. This shift has provided Mission with security of supply for growth, control over quality and traceability, and increased its relevancy with retail customers (fixed prices).