With the Weehawken High School Marching band greeting hundreds of spectators, Goya Foods unveiled its new $162 million facility in Jersey City on April 29. Among the long list of public officials attending was Gov. Christopher Christie, who supported granting $82 million in tax credits over the next 10 years to keep the company in the state.
To entice the company to relocate some of its operations from Secaucus, Jersey City gave the company almost $8 million in local tax abatements over the next 20 years as well.
“Goya has been a cornerstone of our state’s business community and a great corporate citizen with a commitment to keep jobs here in New Jersey,” said Christie. “As the national largest Hispanic-owned food company, they have not only added to our economic growth, but stand as an example of our state’s extraordinary diversity.”
Goya is the largest Hispanic-owned food company in the United States. The opening of the new facility and corporate headquarters in Jersey City is part of a $500 million global expansion planned over the next decade.
The opening of the new facility also completes the move of its main operations from nearby Secaucus to Jersey City. The company is expected to retain some operations in one of its two buildings in Secaucus and sell off the other.
“The second building is going to be used for parking,” said Secaucus Mayor Michael Gonnelli. “This means Secaucus benefits. We keep the tax rateable on one building and get $2 million in parking fees from the other.”
A historic company
Goya, founded in 1936, remains one of the largest family-owned businesses in the country. Co-founder Joseph Unanue has brought the company a long way, and each generation of Unanues has added something special to the country.
Prudencio and Carolina Unanue, immigrants from the Basque country of Northern Spain, met and married in Puerto Rico and founded Goya Foods, Inc. in 1936.
“Goya has been a cornerstone of our state’s business community and a great corporate citizen with a commitment to keep jobs here in New Jersey.” – Gov. Christopher Christie
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A big investment
Goya broke ground on the Jersey City facility on County Avenue only a few blocks from its facility Secaucus in September, 2012. The operation is designed to serve as the company’s corporate headquarters and northeastern distribution center. The new facility is located near rail lines and highways and has access to shipping in Port Newark.
Goya officials said the company has invested about $250 million in its Jersey City, Secaucus and Pedricktown facilities.
The grand opening in Jersey City will retain the 500 current employees – most of whom moved over from the Secaucus facility – and will offer additional jobs.
Goya’s new center includes a 600,000 square foot warehouse and 42,000 square foot corporate office space. The 240,000 square foot building in Secaucus has also been renovated.
“This marks the largest expansion in Goya’s history,” said Bob Unanue, president of Goya Foods. “It is the culmination of almost 80 years of hard work as part of a 10 year strategic plan, designed to reach new consumers and strengthen the Goya brand worldwide.”
The new facility in Jersey City features a rooftop solar system that will generate electrical power free of the existing power grid. Still under renovation, the Secaucus facility will have a similar solar installation.
The Secaucus plant packages rice and beans. Plants elsewhere in the country produce canned goods, soft drinks and the 1,000 other products the company offers. The Secaucus operations have also been upgraded to assemble Goya’s rice mixes at 600 packages per minute, or about six times its previous production.
A product called “yellow rice” is the company’s biggest seller.
Goya has a commanding share of the Latino market in the Northeast, at 60 to 80 percent, and is seeking to increase its share in other regions. Goya produces about 1,000 Hispanic and Caribbean grocery items, included canned and dried beans, canned meats, olives, rice, seasonings, plantain and yucca chips, and frozen entries. It sells more than 20 rice products and 30 types of beans and peas. It also sells tropical fruit nectars and juices, tropical sodas, and coffee.
One of the challenges for supplying the Latino community, company officials said, is that Hispanic culture is diverse, including Spanish, Puerto Rican, Central and South American, Cuban, Dominican, and Mexican influences.
Financial incentives
Goya had options to relocate to Pennsylvania and Rockland and Orange counties in New York.
The New Jersey Economic Development Authority approved $81.9 million in tax breaks for Goya through the state’s Urban Transit Hub Tax Program, which offers tax breaks to companies that move to designated transit hubs in the state. The New Jersey Meadowlands Commission and the New Jersey Economic Development Authority developed a financial formula that allowed Goya to remain in Hudson County.
Jose Arango, director of the Jersey City Department of Economic Development, said he was part of this from the beginning, and that this was an important move.
“With Hispanics making up more than 42 percent of the population of Hudson County
Deputy Mayor Marcos Vigil said this was not just about keeping headquarters and jobs in Jersey City, but about adding jobs.”
Councilman Daniel Rivera said he was thrilled.
“It is important for us to have a company like Goya reside in Jersey City,” he said. “Jobs are the key, and I appreciate that they will be offering more jobs to people here.”
In honor of the grand opening, Goya will donate 25,000 pounds of food to five local food pantries, funds to the Golden Door Charter School in Jersey City to help construct a playground, and institute an annual $20,000 scholarship to the Hudson County Schools of Technology-County Prep High School Culinary program.
“Goya has been on board with us for years,” said Daniel Ganz, president of Hudson County Schools of Technology Foundation. “The company has provided our students with real life experience and are way ahead of us in technology.”
Al Sullivan may be reached at asullivan@hudsonreporter.com.