Goya Foods President Is Ousted; Son Also Removed in Family Coup

February 12, 2004 www.hispanicbusiness.com
Hugh R. Morley


The head of Goya Foods, one of the nation's most widely recognized and successful Hispanic-owned companies, has been ousted as its president after 27 years by his two nephews, his son said Wednesday.

Joseph Unanue, 78, was removed without warning as chairman of the Secaucus-based, privately held company's three-member board in a sudden vote Feb. 3, said his son, Andy Unanue.

The remaining two board members - Joseph's nephews, Robert I. Unanue and Francisco R. Unanue - then forced him to resign as president and CEO, said Andy, who also lost his job. He said the pair removed him as the company's chief operating officer.

Goya officials at first declined to comment on the moves, except to release a statement announcing Robert I. Unanue's appointment as president. The statement made no mention of the removal of the two executives.

But Robert Unanue, 50, later said in a telephone interview that the change was the result of discussions that had taken place between some family members over several years about the company's future.

"We had been talking about transition and leadership for some time, and natural progression," he said. "The company decided that it was time for that leadership to come about."
He declined to be more specific, but a lawsuit filed three days after the board meeting confirms Joseph Unanue's removal from the board.

Robert and Francisco Unanue and Goya Foods Inc. filed the suit against Joseph Unanue, asking the court to declare the board's removal of Joseph from the board "valid" and "effective." The suit - filed in Delaware, where the company is incorporated - stated that Joseph Unanue "has indicated he intends to contest the decision of the majority" of the company's stockholders.

The suit also said that Joseph Unanue had "refused to comply" with the board's wishes in the past.

Andy Unanue, 36, said he had no idea why the two family members had taken the actions.

"You would have to ask them," he said.

The leadership change struck a company that appeared to be unwavering in its long dominance of the Hispanic market. Started in 1936 by Joseph's father, Prudencio, Goya has sales of more than $750 million annually.

The move strips Goya of perhaps its most recognizable executive. Joseph Unanue worked at the company for more than five decades, taking the helm in 1976. During that time, the company became known not only as the major player in the rapidly growing Latino food market but also for its donations and commitment to the Hispanic community.

In 1999, the Smithsonian National Museum of American History in Washington opened a Goya Foods exhibit.

After Joseph, Andy was Goya's most recognizable executive, and he appeared to be ready to succeed his father.

The company's ownership is roughly divided into thirds, Andy said. Just over one-third is owned by Joseph Unanue, and the remainder is held by the families of his late brothers, Anthony, who died in 1976, and Frank, who died last year, Andy Unanue said.

Robert I. Unanue, the son of Anthony Unanue, was head of the company's Florida division until he became president last week. Francisco, Frank's son, headed a company subsidiary, Sazon Goya. He has now taken the helm of the Florida division.

Contacted in a plane flying back to Miami, Francisco declined to comment.

"There's no dispute," he said. "It's a private matter."

The incident is not the first time that Goya has suffered a family feud. During the 1990s, Joseph's younger brother, Charles, waged an unsuccessful battle to gain a larger share of the company after he sold his shares in the 1970s. He was unsuccessful.

Still, Joseph Unanue's sudden removal shocked the few in the North Jersey business community who had heard rumors of the leadership change.

"It was very sudden," said Rafael Cuellar, the head of President Supermarkets in Passaic. "Nobody really had a clue."

Richard Fritzky, the former head of the Meadowlands Chamber of Commerce, said he was saddened at the news.

"Joe Unanue was, in the world I walk, as good a person as you would ever want to meet," Fritzky said. "He was true to his word. He cared for things beyond the company."


Source: (C) 2004 The Record, Bergen County, NJ. via ProQuest Information and Learning Company; All Rights Reserved