Goya 'Demos' its Growing Product Assortment

Secaucus, N.J. — Hispanic foods manufacturer and distributor Goya Foods, which began doing in-store demonstrations out of a lower Manhattan storefront in 1936, recently expanded the geographic reach of its now ample demo program beyond New York to include retailers in other parts of the country.Goya's product assortment and direct distribution base have grown substantially over the past decade – from 900 SKUs in the early 2000s, to 1,600 in 2011, to 2,200 today. "This is the largest expansion in our history," says Carey Yorio, research and development associate at Goya. "We introduce new products annually. Demos are an excellent way to introduce people directly to products. They go beyond the visual experience of seeing items on shelves."The demos can have different goals, Yorio says, including supporting product launches, boosting trade programs and promotions, or increasing sales and distribution among targeted shoppers. In March, Goya conducted a demo at a Pathmark in Weehawken, N.J., as part of the renovated store's reopening.Goya closely studies local Hispanic populations when choosing demo locations. By inputting a store location's ZIP code into Miami-based GeoScape's business intelligence software, Goya can learn the number of Hispanics in the area, as well as their assimilation levels, income and countries of origin. Goya also then looks at a store's traffic and sales numbers, while also considering its relationship with the retailer.Goya funds most of the demos, says Audris Castellanos, marketing manager, beans, although she would not divulge costs or the number of annual events. While she did not identify the specific retailers as part of the nationwide expansion, she did identify New York-area retailers Walmart, Wakefern, East Side Marketplace, Market Basket, C-Town, Food Bazaar and Western Beef as current demo partners in addition to Pathmark. Goya has expanded its distribution base to 15 total distribution and production facilities. Castellanos says this allows Goya to offer more products across more regions. The events are conducted by local demo companies and sometimes feature Goya executive chef Fernando Desa, who spearheads recipe development for the brand. Since supermarket space is usually limited, the demonstrators use branded tables, aprons and hats to stand out. The partners support the demos by using coupons, store flyers, product samples, signage and retailer websites.Goya also conducts demos at community festivals and concerts, where it emphasizes the brand rather than specific products. "At store demos, we want consumers to try the product right there and increase trials," says Castellanos.To measure results, Goya determines how many samples are provided at each location and how many products are sold that day and during ensuing weeks. Results are compared to those from non-demo periods. "What may be good dollar volume criteria for one demo product might not be for another," says Castellanos.The impact reaches beyond the store, as recipe cards are distributed at the demos that direct consumers to Goya.com. "We track daily clicks and can see the immediate effects of demos, including how long people were on the site and how many recipes they downloaded," says Castellanos. "We definitely see spikes after demos."

Goya 'Demos' its Growing Product Assortment

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