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The Wall Street Journal has an interesting piece about Goya Foods, the $750 million manufacturer of Hispanic products, which is facing some family infighting over the direction of the company.

The chairman of the company, 78-year-old Joseph Unanue, recently was ousted from his role by two nephews who control two-thirds of the company's shares. The reason? The elder Unanue and his son favored an expansion plan that would have placed the product in larger chains such as Wal-Mart, which would have given those chains greater say in the manufacturer's supply chain structure. It also, according to the company, would have allowed Goya to double in size in two or three years.

The nephews, on the other hand, are resisting this approach, concerned about the impact of such a strategy on Goya's traditional customers, not to mention worried about the cultural cost of ceding any control to companies such as Wal-Mart.

Dick Albu, a Connecticut-based business consultant who worked with the company on its expansion strategy, told the WSJ that the company "needs to go national if it wants to keep growing," even if it means relinquishing some control to big chains. "Retailers are consolidating, they want control, they want centralized buying ... you have to go with what the market wants," Albu said.
KC's View:
A number of MNB users sent us this piece, all of them siding with the nephews and saying that they were glad that someone was standing up for traditional customers and against the influences of major chains.

We sort of agree. But we would have to point out that this approach opens the door for other companies to supplant Goya as the leader in Hispanic food products. Maybe that's okay. But we live in a society where being number two is an increasingly untenable position.