Calavo Growers, the US firm best known for its avacados, is to sell Calavo-branded mushrooms on the West Coast after signing a deal with a Canadian company.

The California-based firm has struck an agreement to sell Farmers' Fresh Mushroom's produce under the Calavo brand.

"Mushrooms are an excellent complementary product for us," said Calavo chairman, president and CEO Lee Cole. "Initially, we will be focusing on the popular white button and cremini varieties, packaged and sliced, along with limited exotics."

Cole said the deal would create annual revenue of US$7-8m in the fiscal year to the end of next October.

The deal is Calavo's third in four months. Last month, the company signed a deal to distribute the Maui Gold fresh pineapple brand throughout North America.

In August, Calvavo signed a deal with Mexican vegetable producer Agricola Belher that saw the launch of Calvavo-branded tomatoes this autumn.

"The three new product offerings - Calavo-brand tomatoes, Maui Gold pineapples and Calavo-brand mushrooms - are anticipated to contribute $53-63m to revenues in our fiscal year ending October 31, 2008," Cole added. "Further, we expect these new products will be immediately accretive to earnings."