Mission Produce has its eyes set on avocado growth, with shares closing up on the day after its initial public offering on the Nasdaq Thursday.
Avocados have become both a superfood staple and a millennial classic. According to the Hass Avocado Board, the U.S. Hass avocado industry had a total market value of $6.5 billion in 2019. That number is expected to hit more than $8 billion in 2023.
Mission Produce has seen continued consumption growth within the U.S., but its future plans aren't limited to the domestic market. Bryan Giles, chief financial officer of Mission Produce, told Cheddar that potential investors appeared interested when the company spoke about "where this avocado revolution is tracking towards."
"We have very aggressive plans in Europe and Asia to grow this category globally," Giles said. "In many cases, these markets are decades behind where the U.S. is at, and they're growing at a fast rate today. And, we really see opportunities for consumption growth going forward."
Considered an essential business, operations have continued during the coronavirus. Giles said Mission Produce was proactive at the beginning of the pandemic with new entry protocols and social distancing and has not had to shut down any of its facilities.
"Our retail customer base has been very strong and business has picked up since COVID," Giles said. "While food services is off a little bit, it's a small part of our business and it has rebounded strongly over the last few months."
Mission Produce priced its IPO at $12 per share. The stock closed at $13.80 on Thursday afternoon.
