After Goya products recorded a 400% increase in sales through March thanks to American consumers stocking up on beans during the spreading coronavirus pandemic, the brand has hit a wall after its CEO praised President Trump, according to NBC News.
While many Latinx and other consumers boycotted the brand after CEO Robert Unanue called Trump a “blessed” leader and said “we are truly blessed” to have Trump in the presidency, Trump and his daughter used their official positions to try to promote the brand.
In the aftermath, Goya received $47 million worth of negative publicity, Apex Marketing Group told NBC News versus just $10 million in positive publicity. Other brands saw sales of competing products jump and found openings for new products to challenge Goya offerings.
“Of the 412 items that we sell, our Adobo seasoning was 75th in popularity and in the week since [the Goya boycott], it’s moved to 40th,” Bill Penzey, chief executive of Milwaukee’s Penzey’s Spices, told NBC News at the time of the boycott. “I think they’re going to be in for some trouble. A change of leadership and a public apology. I think that will be coming.”
At the start of the coronavirus pandemic’s sweep across the United States, consumers sought beans as an alternative source of protein as news reports spread about meat processing plants shutting down due to coronavirus outbreaks and as families sought food supplies that could be stored for extended periods of time.
A family-owned business, Goya had put out feelers seeking a buyer for their corporation prior to Unanue’s comments four weeks ago. The family retained Goldman Sachs to field offers, expected to be around $3 billion. It is unclear how Unanue’s praise of Trump have impacted the prospect of a sale or the sales price.