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Frito-Lay is an American
subsidiary A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a s ...
of
PepsiCo PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manuf ...
that manufactures, markets, and sells
corn chips Corn chips are a snack food made from cornmeal fried in oil or baked, usually in the shape of a small noodle or scoop. Corn chips are thick, rigid and very crunchy. Corn chips have the strong aroma and flavor of roasted corn, and are often heav ...
,
potato chips A potato chip (North American English; often just chip) or crisp (British and Irish English) is a thin slice of potato that has been either deep fried, baked, or air fried until crunchy. They are commonly served as a snack, side dish, or ap ...
, and other
snack foods A snack is a small portion of food generally eaten between meals. Snacks come in a variety of forms including packaged snack foods and other processed foods, as well as items made from fresh ingredients at home. Traditionally, snacks are p ...
. The primary snack food brands produced under the Frito-Lay name include
Fritos Fritos is an American brand of corn chips and dipping sauces that was created in 1932 by Charles Elmer Doolin and produced since 1961 by the Frito-Lay division of PepsiCo. Fritos are made by deep-frying extruded whole cornmeal, unlike the simi ...
corn chips,
Cheetos Cheetos (formerly styled as Chee-tos until 1998) is a crunchy corn puff snack brand made by Frito-Lay, a subsidiary of PepsiCo. Fritos creator Charles Elmer Doolin invented Cheetos in 1948, and began national distribution in the U.S. The initi ...
cheese-flavored snacks,
Doritos Doritos () is an American brand of flavored tortilla chips produced since 1964 by Frito-Lay, a wholly owned subsidiary of PepsiCo. The original Doritos were not flavored. The first flavor was Toasted Corn, released in 1966, followed by Taco in ...
and
Tostitos Tostitos is a brand of Frito-Lay that produces different tortilla chips and a range of accompanying dips. Varieties There are many varieties of Tostitos chips: * Tostitos ''Gold'' (and bite size ''Gold'') - a thicker and larger version of t ...
tortilla chips,
Lay's Lay's is a brand of potato chips, as well as the name of the company that founded the chip brand in the United States. The brand is also referred to as Frito-Lay because both Lay's and Fritos are brands sold by the Frito-Lay company, which ha ...
and Ruffles potato chips,
Rold Gold Rold Gold refers to first a company and then a remaining brand of pretzels, now owned by Frito-Lay. The company, originally named "American Cone and Pretzel Company", was founded in 1917 by Philadelphia businessman Lorraine Schumaker. Run for i ...
pretzels, and Walkers potato crisps (in the UK and Ireland). Each brand generated annual worldwide sales over $1 billion in 2009. Frito-Lay began in the early 1930s as two separate companies, "The Frito Company" and "H.W. Lay & Company", which merged in 1961 to form "Frito-Lay, Inc". In 1965, Frito-Lay, Inc. merged with the Pepsi-Cola Company, resulting in the formation of
PepsiCo PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manuf ...
. Since then, Frito-Lay has operated as a
wholly owned subsidiary A subsidiary, subsidiary company or daughter company is a company (law), company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company ...
of PepsiCo. Through Frito-Lay, PepsiCo is the largest globally distributed snack food company, with sales of its products in 2009 comprising 40 percent of all "savory snacks" sold in the United States, and 30 percent of the non-U.S. market. In 2018, Frito-Lay
North America North America is a continent in the Northern Hemisphere and almost entirely within the Western Hemisphere. It is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South America and the Car ...
accounted for 25 percent of PepsiCo's annual sales.


History


The Frito Company

In 1932,
Kansas City, Kansas Kansas City, abbreviated as "KCK", is the third-largest city in the U.S. state of Kansas, and the county seat of Wyandotte County. It is an inner suburb of the older and more populous Kansas City, Missouri, after which it is named. As of ...
-born Charles Elmer Doolin, manager of the Highland Park Confectionery in
San Antonio, Texas ("Cradle of Freedom") , image_map = , mapsize = 220px , map_caption = Interactive map of San Antonio , subdivision_type = Country , subdivision_name = United States , subdivision_type1= State , subdivision_name1 = Texas , subdivision_t ...
, purchased a
corn chip Corn chips are a snack food made from cornmeal fried in oil or baked, usually in the shape of a small noodle or scoop. Corn chips are thick, rigid and very crunchy. Corn chips have the strong aroma and flavor of roasted corn, and are often hea ...
recipe, a handheld
potato ricer A potato ricer (also called a ricer) is a kitchen implement used to process potatoes or other food by forcing it through a sheet of small holes, which are typically about the diameter of a grain of rice. Description A common variety of potato ri ...
, and 19 retail accounts from a corn chip manufacturer for $100, which he borrowed from his mother. Doolin established a new corn chip business, The Frito Company, in his mother's kitchen. Doolin, with his mother and brother, produced the corn chips, now named
Fritos Fritos is an American brand of corn chips and dipping sauces that was created in 1932 by Charles Elmer Doolin and produced since 1961 by the Frito-Lay division of PepsiCo. Fritos are made by deep-frying extruded whole cornmeal, unlike the simi ...
, and had a production capacity of approximately 10 pounds per day and roughly 30 cents per product. Doolin distributed the Fritos in 5¢ bags. Daily sales totaled $8 to $10 and profits averaged about $2 per day. In 1933 the production of Fritos increased from 10 pounds to nearly 100 pounds due to the development of a hammer press. By the end of the year, production lines were operating in
Houston Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...
and
Dallas Dallas () is the List of municipalities in Texas, third largest city in Texas and the largest city in the Dallas–Fort Worth metroplex, the List of metropolitan statistical areas, fourth-largest metropolitan area in the United States at 7.5 ...
. The Frito Company headquarters also moved to Dallas to capitalize on the city's central location and better availability of raw materials. In 1937 The Frito Company opened its research and development lab and introduced new products, including Fritos Peanut Butter Sandwiches and Fritos Peanuts, to supplement Fritos and Fritatos
Potato chip A potato chip (North American English; often just chip) or crisp (British and Irish English) is a thin slice of potato that has been either deep fried, baked, or air fried until crunchy. They are commonly served as a snack, side dish, or appe ...
s, which had been introduced in 1935. In 1939, the company purchased Fluffs pork skins and incorporated the Dallas business. Frito relocated the operation from Haskell Avenue to a new facility at 2005 Wall Street. Alice Rupe, who was one of Fluffs' original six all-woman crew, was placed in charge of operations. In 1940, she was named assistant treasurer and manager; in 1949 she was promoted to treasurer. In 1941, the company opened its western division in
Los Angeles Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the largest city in the state of California and the second most populous city in the United States after New York City, as well as one of the world' ...
with two sales routes, which would become the prototype for The Frito Company's distribution system. In 1945, The Frito Sales Company was established to separate sales from production activities. Expansion continued with the issue of six franchises through the Frito National Company in the same year. In 1950, Fritos were sold in all 48 states. The Frito Company issued its first public stock in 1954. In 1958, Frito entered the Midwest potato chip market by acquiring the Nicolay Dancey Company, which made New Era potato chips. At the time of Doolin's death in 1959, The Frito Company produced over 40 products, had plants in 18 cities, employed over 3,000 people, and had sales in 1958 in excess of $50 million. By 1962, Fritos were sold in 48 countries.


H.W. Lay & Company

In 1931,
Charlotte, North Carolina Charlotte ( ) is the most populous city in the U.S. state of North Carolina. Located in the Piedmont region, it is the county seat of Mecklenburg County. The population was 874,579 at the 2020 census, making Charlotte the 16th-most populo ...
-born salesman
Herman Lay Herman Warden Lay (March 6, 1909 – December 6, 1982) was an American businessman who was involved in potato chip manufacturing with his eponymous brand of Lay's potato chips. He started H.W. Lay Co., Inc., now part of the Frito-Lay corporati ...
(1909–1982) sold potato chips in the Southern United States out of his car. In 1932, he began a potato chip business in
Nashville, Tennessee Nashville is the capital city of the U.S. state of Tennessee and the county seat, seat of Davidson County, Tennessee, Davidson County. With a population of 689,447 at the 2020 United States census, 2020 U.S. census, Nashville is the List of muni ...
. Lay was hired as a salesman for the Barrett Food Products Company, an
Atlanta, Georgia Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,715 ...
, manufacturer of Gardner's Potato Chips, and eventually took over Barrett's Nashville warehouse as a distributor. Lay hired his first salesman in 1934, and three years later had 25 employees and a larger manufacturing facility where he produced
popcorn Popcorn (also called popped corn, popcorns or pop-corn) is a variety of corn kernel which expands and puffs up when heated; the same names also refer to the foodstuff produced by the expansion. A popcorn kernel's strong hull contains the se ...
and peanut butter sandwich crackers. A representative of the Barrett Food Company contacted Lay in 1938, offering to sell Barrett's plants in Atlanta and
Memphis Memphis most commonly refers to: * Memphis, Egypt, a former capital of ancient Egypt * Memphis, Tennessee, a major American city Memphis may also refer to: Places United States * Memphis, Alabama * Memphis, Florida * Memphis, Indiana * Memp ...
to Lay for $60,000. Lay borrowed $30,000 from a bank and persuaded the Barrett Company to take the difference in preferred stock. Lay moved his headquarters to Atlanta and formed H.W. Lay & Company in 1939. He later purchased the Barrett manufacturing plant in
Jacksonville, Florida Jacksonville is a city located on the Atlantic coast of northeast Florida, the most populous city proper in the state and is the largest city by area in the contiguous United States as of 2020. It is the seat of Duval County, with which the ...
, along with additional plants in
Jackson, Mississippi Jackson, officially the City of Jackson, is the Capital city, capital of and the List of municipalities in Mississippi, most populous city in the U.S. state of Mississippi. The city is also one of two county seats of Hinds County, Mississippi, ...
;
Louisville, Kentucky Louisville ( , , ) is the largest city in the Commonwealth of Kentucky and the 28th most-populous city in the United States. Louisville is the historical seat and, since 2003, the nominal seat of Jefferson County, on the Indiana border ...
; and
Greensboro, North Carolina Greensboro (; formerly Greensborough) is a city in and the county seat of Guilford County, North Carolina, United States. It is the third-most populous city in North Carolina after Charlotte and Raleigh, the 69th-most populous city in the Un ...
. Lay retained the Gardner trademark of Barrett Food Products until 1944, when the product name was changed to
Lay's Lay's is a brand of potato chips, as well as the name of the company that founded the chip brand in the United States. The brand is also referred to as Frito-Lay because both Lay's and Fritos are brands sold by the Frito-Lay company, which ha ...
Potato Chips. Lay expanded further in the 1950s, with the purchase of The Richmond Potato Chip Company and the Capitol Frito Corporation. By 1956, with more than 1,000 employees, plants in eight cities, and branches or warehouses in thirteen others, H.W. Lay & Company was the largest manufacturer of potato chips and snack foods in the United States.


Merger forms Frito-Lay, Inc.

In 1945, The Frito Company granted H.W. Lay & Company an exclusive franchise to manufacture and distribute Fritos in the Southeast. The two companies worked toward national distribution and developed a close business affiliation. In September 1961, The Frito Company and H.W. Lay & Company merged to become Frito-Lay, Inc., combining their headquarters in Dallas, Texas. At this point, the company's annual revenues totaled $127 million, largely generated from sales of its four main brands at the time: Fritos, Lay's, Cheetos, and Ruffles.


Division of PepsiCo, Inc.

In February 1965, the boards of directors for Frito-Lay, Inc. and Pepsi-Cola announced a plan for the merger of the two companies. On June 8, 1965, the merger of Frito-Lay and Pepsi-Cola Company was approved by shareholders of both companies, and a new company called PepsiCo, Inc. was formed. At the time of the merger, Frito-Lay owned 46 manufacturing plants nationwide and had more than 150 distribution centers across the United States. The merger was pursued for multiple factors, one of which was the potential for Frito-Lay snacks to be distributed outside of its initial markets of the United States and Canada—via Pepsi-Cola's existing presence and distribution network in 108 countries at the time of the merger. International distribution of Frito-Lay products expanded soon after the 1965 merger, and its U.S. presence grew at the same time, resulting in
Lay's Lay's is a brand of potato chips, as well as the name of the company that founded the chip brand in the United States. The brand is also referred to as Frito-Lay because both Lay's and Fritos are brands sold by the Frito-Lay company, which ha ...
becoming the first potato chip brand to be sold nationwide (in all 50 U.S. states) in 1965. Also at this time, PepsiCo had envisioned marketing Frito-Lay snacks alongside Pepsi-Cola soft drinks. In an interview with ''
Forbes ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
'' in 1968, PepsiCo CEO Donald Kendall summarized this by noting that "Potato chips make you thirsty; Pepsi satisfies thirst." Plans to jointly promote the soft drink and snack products were thwarted later that year, when the
Federal Trade Commission The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...
ruled against it.


1965–1980

Upon the formation of PepsiCo, Frito-Lay soon began efforts to expand with the development of new snack food brands in the 1960s and 1970s, including
Doritos Doritos () is an American brand of flavored tortilla chips produced since 1964 by Frito-Lay, a wholly owned subsidiary of PepsiCo. The original Doritos were not flavored. The first flavor was Toasted Corn, released in 1966, followed by Taco in ...
(1966),
Funyuns Funyuns is the brand name of an onion-flavored corn snack introduced in the United States in 1969, and invented by Frito-Lay employee George Wade Bigner. Funyuns consist primarily of cornmeal, ring-shaped using an extrusion process, representing t ...
(1969), and
Munchos Munchos are a potato chip snack food manufactured from dehydrated potatoes by Frito-Lay. Munchos are somewhat similar to Lay's Stax and Pringles, which are also made from dried potatoes. Some reviews say that the chip differs in its "light and ...
(1971). The most popular new Frito-Lay product launched during this era was Doritos, which initially was positioned as a more flavorful
tortilla chip A tortilla chip is a snack food made from corn tortillas, which are cut into triangles and then fried or baked (alternatively they may be discs pressed out of corn masa then fried or baked). Corn tortillas are made of nixtamalized corn, veget ...
. At first, the chip was perceived by consumers as being too bland. In response, the company re-launched Doritos in Taco, and later Nacho Cheese, flavors. The spicier composition proved successful, and Doritos quickly became the second most popular Frito-Lay product line, second only to Lay's potato chips. Frito-Lay faced increased competition in the 1970s from potato chip brands such as Pringles, launched by
Procter & Gamble The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health/consumer hea ...
(but now owned by
Kellogg's The Kellogg Company, doing business as Kellogg's, is an American multinational food manufacturing company headquartered in Battle Creek, Michigan, United States. Kellogg's produces cereal and convenience foods, including crackers and toaste ...
) in competition with Lay's.
Nabisco Nabisco (, abbreviated from the earlier name National Biscuit Company) is an American manufacturer of cookies and snacks headquartered in East Hanover, New Jersey. The company is a subsidiary of Illinois-based Mondelēz International. Nabisco's ...
and
Standard Brands Standard Brands was a packaged foods company, formed in 1929 by J. P. Morgan with the merger of: * Fleischmann Company *Royal Baking Powder Company * E. W. Gillett Company of Canada (1929) - Toronto-based baking goods company (maker of Magic Bak ...
also expanded in the 1970s to produce potato chips, cheese curls and pretzels, which placed added pressure across Frito-Lay's entire line of snack food brands.


1980–2000

Frito-Lay acquired GrandMa's Cookies in 1980, originally founded by Foster Wheeler in
Portland, Oregon Portland (, ) is a port city in the Pacific Northwest and the largest city in the U.S. state of Oregon. Situated at the confluence of the Willamette and Columbia rivers, Portland is the county seat of Multnomah County, the most populous co ...
in 1914, which launched nationwide in the United States in 1983. In January 1978, Frito-Lay's product development group led by Jack Liczkowski completed development of
Tostitos Tostitos is a brand of Frito-Lay that produces different tortilla chips and a range of accompanying dips. Varieties There are many varieties of Tostitos chips: * Tostitos ''Gold'' (and bite size ''Gold'') - a thicker and larger version of t ...
, a Mexican-style tortilla chip lineup. Tostitos Traditional Flavor and Tostitos Nacho Cheese Flavor went into national distribution in the United States by 1980 and reached the sales of $140 million, making it one of the most successful new products introduction in Frito-Lay history. Tostitos sales grew quickly, and in 1985 it had become Frito-Lay's fifth-largest brand, generating annual sales of $200 million. Ahead of Tostitos at the time were Doritos, Lay's, Fritos, and Ruffles, each recording annual sales between $250 and $500 million. While Tostitos became a long-term success, several other new products launched in the 1980s were discontinued after lackluster results. These short lived Frito-Lay products included Stuffers pre-filled dip shells and Toppels crackers, which came pre-topped with cheese. In the late 1980s, Frito-Lay acquired
Smartfood Smartfood is an American brand of prepopped, flavored popcorn that is made by the Frito-Lay company. History Smartfood was first created in 1985 by Andrew Martin - chairman and CEO, Ken Meyers- VP of operations, and Martin's wife Annie Withe ...
, a brand of cheese-flavored
popcorn Popcorn (also called popped corn, popcorns or pop-corn) is a variety of corn kernel which expands and puffs up when heated; the same names also refer to the foodstuff produced by the expansion. A popcorn kernel's strong hull contains the se ...
which it began to distribute across the United States. International sales began to increase significantly at this time as well, with annual revenues from sales outside of the U.S. and Canada accounting for $500 million in 1989, contributing to total Frito-Lay sales of $3.5 billion in the same year. In Canada, Frito-Lay began a partnership with
General Foods General Foods Corporation was a company whose direct predecessor was established in the United States by Charles William Post as the Postum Cereal Company in 1895. The company changed its name to "General Foods" in 1929, after several corporate ...
-owned Hostess Food Products in 1987, before merging in 1988 to become The Hostess Frito-Lay Company. Several new products were developed internally at Frito-Lay and launched in the 1990s, the most successful of which was Sun Chips, a multi-grain chip first sold in 1991. Sun Chips, along with new Baked (instead of fried) variants of Tostitos and Lay's, represented Frito-Lay's intent to capitalize on an emerging trend among adults in the U.S., who were displaying a growing preference for healthier snack alternatives. In 1994, Frito-Lay recorded annual retail sales of nearly $5 billion, selling 8 billion bags of chips,
popcorn Popcorn (also called popped corn, popcorns or pop-corn) is a variety of corn kernel which expands and puffs up when heated; the same names also refer to the foodstuff produced by the expansion. A popcorn kernel's strong hull contains the se ...
, and
pretzels A pretzel (), from German pronunciation, standard german: Breze(l) ( and French / Alsatian: ''Bretzel'') is a type of baked bread made from dough that is commonly shaped into a knot. The traditional pretzel shape is a distinctive symmetrical ...
during that year—outpacing competitors
Eagle Eagle is the common name for many large birds of prey of the family Accipitridae. Eagles belong to several groups of genera, some of which are closely related. Most of the 68 species of eagle are from Eurasia and Africa. Outside this area, just ...
(owned by
Anheuser-Busch Anheuser-Busch Companies, LLC is an American brewing company headquartered in St. Louis, Missouri. Since 2008, it has been wholly owned by Anheuser-Busch InBev SA/NV (AB InBev), now the world's largest brewing company, which owns multiple glo ...
) and Wise (owned by Borden). Up until the mid-1990s, Frito-Lay was represented in PepsiCo's organizational structure as Frito-Lay, a single division of PepsiCo. This changed in 1996 when PepsiCo merged its snack food operations into what was titled the "Frito-Lay Company", made up of two subsequent divisions, ''Frito-Lay North America'' and ''Frito-Lay International''. In 1992, Frito-Lay acquired full ownership of Hostess Food Products from General Foods, followed in 1997 by the acquisition of candied popcorn snack brand
Cracker Jack Cracker Jack is an American brand of snack food that consists of molasses-flavored, caramel-coated popcorn, and peanuts, well known for being packaged with a prize of trivial value inside. The Cracker Jack name and slogan, "The More You Eat The ...
, and in 1998 by multiple international acquisitions and joint ventures, including
Smith's Snackfood Company The Smith's Snackfood Company is a British-Australian snack food company owned by American multinational corporation PepsiCo. It is best known for its brand of potato crisps. The company was founded by Frank Smith and Jim Viney in the United Kin ...
(
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
), as well as Savoy Brands (
Latin America Latin America or * french: Amérique Latine, link=no * ht, Amerik Latin, link=no * pt, América Latina, link=no, name=a, sometimes referred to as LatAm is a large cultural region in the Americas where Romance languages — languages derived f ...
).


Recent history (2000–present)

In the early 1980s, PepsiCo continued to grow its Frito-Lay brands in two ways—through international expansion and acquisition. Through a joint-venture with Walkers, a UK chip and snack manufacturing company, Frito-Lay increased its distribution presence in Europe. Similar joint-ventures were arranged in other regions of the world in the 2000s, including Smith's in Australia, and
Sabritas Papa Sabritas is a Mexican snacks company. They are best known for manufacturing chips. History Sabritas was founded in 1943 by Pedro Antonio Marcos Noriega as Golosinas y Productos Selectos in Mexico City. It produced and sold potato chips, c ...
and
Gamesa Gamesa (formerly Galletera Mexicana S.A. de C.V. "Mexican Biscuit Company") is Mexico's largest manufacturer of cookies. The company also makes flour, ready to eat cereals and other related products. It is headquartered in San Nicolás de los Gar ...
in Mexico. As a result of these international arrangements, some global Frito-Lay products (such as Doritos) are branded under the same name worldwide. Others maintain their original regional names. For example,
Lay's Lay's is a brand of potato chips, as well as the name of the company that founded the chip brand in the United States. The brand is also referred to as Frito-Lay because both Lay's and Fritos are brands sold by the Frito-Lay company, which ha ...
chips are a similar product to
Walkers Crisps Walkers is a British snack food manufacturer mainly operating in the UK and Ireland. The company is best known for manufacturing potato crisps and other (non-potato-based) snack foods. In 2013, it held 56% of the British crisp market. Walker ...
in the UK and both share similar logo designs. The
Quaker Oats Company The Quaker Oats Company, known as Quaker, is an American food conglomerate based in Chicago. It has been owned by PepsiCo since 2001. History Precursor miller companies In the 1850s, Ferdinand Schumacher and Robert Stuart founded oat mills. S ...
merged with PepsiCo in 2001, resulting in Quaker snacks products, including Chewy granola bars, Gatorade, and Quaker
rice cakes A rice cake may be any kind of food item made from rice that has been shaped, condensed, or otherwise combined into a single object. A wide variety of rice cakes exist in many different cultures in which rice is eaten and are particularly preval ...
, becoming organized under the Frito-Lay North America operating division. This operating structure was short-lived, and in 2003, as part of a restructuring, the international operations of Frito-Lay (formerly Frito-Lay International) were brought within the PepsiCo International division, while Frito-Lay North America was maintained as its own division, comprising Frito-Lay business within the United States and Canada.2006 Form 10-K
/ref> Frito-Lay continued to experiment with changes to the composition of its products, introducing Reduced Fat Lay's and Cheetos in 2002. The "Baked" product line also expanded in 2002 to include Baked Doritos. In 2003, Frito-Lay introduced the first products in its "Natural" line, which were made with ingredients that had been organically produced. The first of these included Organic Blue Corn Tostitos, Natural Lay's Potato Chips (seasoned with
sea salt Sea salt is salt that is produced by the evaporation of seawater. It is used as a seasoning in foods, cooking, cosmetics and for preserving food. It is also called bay salt, solar salt, or simply salt. Like mined rock salt, production of sea sa ...
), and Natural Cheetos White Cheddar Puffs. A new CEO,
Irene Rosenfeld Irene Blecker Rosenfeld (born May 3, 1953) is an American businesswoman who was the chairman and chief executive officer (CEO) of Mondelēz International. Rosenfeld's career began at Dancer Fitzgerald Sample, a New York City advertising agency. ...
, was appointed in 2005. Under her management, Frito-Lay North America continued to expand its product lines with acquisitions such as Stacy's Pita Chip Company, which represented "Frito-Lay's desire to participate more broadly in the $90 billion macrosnack category", particularly involving snack foods made with more natural ingredients, according to reports from within its industry at that time. In 2010, Frito-Lay reformulated Lay's Kettle and Lay's flavored chips into a new variant labeled as being made with all-natural ingredients. Sales of Lay's potato chips grew by 8% following the change to all-natural ingredients. As a result, Frito-Lay announced in 2010 its plans to convert approximately half of all Frito-Lay products, including Sun Chips, Tostitos, Fritos, and Rold Gold pretzels, to all-natural ingredients in 2011.


Controversies and health concerns


Stereotyping in 1960s commercials

In 1967, the company introduced a cartoon spokesman, the
Frito Bandito The Frito Bandito was the cartoon mascot for Fritos corn chips from 1967 to 1971. The Bandito was created by the Foote, Cone & Belding Agency and animated by Tex Avery. The character was voiced by Mel Blanc, who used an exaggerated Mexican a ...
, which became the subject of criticism from
Mexican-American Mexican Americans ( es, mexicano-estadounidenses, , or ) are Americans of full or partial Mexican heritage. In 2019, Mexican Americans comprised 11.3% of the US population and 61.5% of all Hispanic and Latino Americans. In 2019, 71% of Mexica ...
groups, who expressed concerns that it portrayed a Mexican
stereotype In social psychology, a stereotype is a generalized belief about a particular category of people. It is an expectation that people might have about every person of a particular group. The type of expectation can vary; it can be, for example ...
. The
Frito Bandito The Frito Bandito was the cartoon mascot for Fritos corn chips from 1967 to 1971. The Bandito was created by the Foote, Cone & Belding Agency and animated by Tex Avery. The character was voiced by Mel Blanc, who used an exaggerated Mexican a ...
(voiced by
Mel Blanc Melvin Jerome Blanc (born Blank ; May 30, 1908July 10, 1989) was an American voice actor and radio personality whose career spanned over 60 years. During the Golden Age of Radio, he provided character voices and vocal sound effects for comedy ra ...
) wore a
sombrero A sombrero (Spanish , ) is a type of wide-brimmed Mexican men's hat used to shield the face and eyes from the sun. It usually has a high pointed crown, an extra-wide brim (broad enough to cast a shadow over the head, neck and shoulders of the we ...
and
bandolier A bandolier or a bandoleer is a pocketed belt for holding either individual bullets, or belts of ammunition. It is usually slung sash-style over the shoulder and chest, with the ammunition pockets across the midriff and chest. Though functio ...
s, had a
handlebar moustache A handlebar moustache is a moustache with particularly lengthy and upwardly curved extremities. These moustache styles are named for their resemblance to the handlebars of a bicycle. It is also known as a spaghetti moustache, because of its ste ...
, and brandished pistols. Protests from advocacy groups such as The National Mexican-American Anti-Defamation Committee (NMAADC) prompted some initial concessions, such as the removal of the pistols and a thinning of the accent. The Frito Bandito was replaced in 1970 by The Muncha Bunch, and then again by a new cartoon called W.C. Fritos (based on
W. C. Fields William Claude Dukenfield (January 29, 1880 – December 25, 1946), better known as W. C. Fields, was an American comedian, actor, juggler, and writer. Fields's comic persona was a misanthropic and hard-drinking egotist who remained a sympathe ...
).


Genetically modified ingredients

In the late 1990s, the use of
genetically modified organisms A genetically modified organism (GMO) is any organism whose genetic material has been altered using genetic engineering techniques. The exact definition of a genetically modified organism and what constitutes genetic engineering varies, with ...
(GMOs) was rising as a farming practice, as it made for the growth of larger (and thus less expensive to produce) corn crops. Frito-Lay, due in part to its leverage as one of the world's largest purchasers of
corn Maize ( ; ''Zea mays'' subsp. ''mays'', from es, maíz after tnq, mahiz), also known as corn (North American and Australian English), is a cereal grain first domesticated by indigenous peoples in southern Mexico about 10,000 years ago. Th ...
, became the target of lobbying efforts from both proponents and opponents of GMOs. In late 1999, Frito-Lay asked its suppliers not to use genetically engineered corn. A similar announcement followed in early 2000, when the company asked its farmers not to grow genetically modified potatoes. Frito-Lay stated these requests were made in response to consumers' worries, and not in response to protests by the OCA,
Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by Irving Stowe and Dorothy Stowe, immigrant environmental activists from the United States. Greenpeace states its goal is to "ensure the ability of the Earth t ...
or other groups. A representative of
Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by Irving Stowe and Dorothy Stowe, immigrant environmental activists from the United States. Greenpeace states its goal is to "ensure the ability of the Earth t ...
expressed the perspective that this move was a positive step, stating, "Frito-Lay is about two-thirds of PepsiCo's sales. They realize the handwriting is on the wall and that people don't want to eat GMOs". In 2012, the policy as stated by Pepsico was: "Global Genetically-Modified Food And Ingredient Policy PepsiCo is dedicated to producing the highest quality, greatest tasting food and beverage products in every part of the world. PepsiCo ensures all products meet or exceed stringent safety and quality standards and uses only ingredients that are safe and approved by applicable government and regulatory authorities. Approval of genetically-modified foods differs from country to country regarding both use and labeling. For this reason, PepsiCo adheres to all relevant regulatory requirements regarding the use of genetically-modified food crops and food ingredients within the countries it operates. Where legally approved, individual business units may choose to use or not use genetically-modified ingredients based on regional preferences."


Trans fats

Amid rising concerns over
fat In nutrition science, nutrition, biology, and chemistry, fat usually means any ester of fatty acids, or a mixture of such chemical compound, compounds, most commonly those that occur in living beings or in food. The term often refers spec ...
intake and
trans-fat Trans fat, also called trans-unsaturated fatty acids, or trans fatty acids, is a type of unsaturated fat that naturally occurs in small amounts in meat and milk fat. It became widely produced as an unintentional byproduct in the industrial pr ...
, fat content was reduced and trans-fats were eliminated from Doritos, Tostitos, and Cheetos in 2004. The composition of Ruffles, Lay's, and Fritos were not changed as these products had always been free of trans-fat.


Poor working conditions

In July 2021, Frito-Lay became subject to media attention over poor working conditions at its plant in
Topeka Topeka ( ; Kansa: ; iow, Dópikˀe, script=Latn or ) is the capital city of the U.S. state of Kansas and the seat of Shawnee County. It is along the Kansas River in the central part of Shawnee County, in northeast Kansas, in the Central Un ...
. These conditions, which allegedly include forced overtime and 84-hour workweeks, led to a strike involving hundreds of workers at the Topeka location. The strike began on July 5 and ceased on July 23, 2021.


Operations

As of 2010, Frito-Lay operates production plants, distribution centers, and regional offices in more than 40 countries, with its ''Frito-Lay North America'' headquarters residing in
Plano, Texas Plano ( ) is a city in Collin County, Texas, Collin County and Denton County, Texas, United States. It had a population of 285,494 at the 2020 United States census, 2020 census. It is a principal city of the Dallas–Fort Worth metroplex. Hist ...
. Within North America, Frito-Lay owns (and in some cases, leases) approximately 1,830 distribution centers, warehouses and offices. The division also maintains 55 production plants. Its
chief executive officer A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
is Steven Williams.


North America

''PepsiCo Americas Foods'' consists of PepsiCo's food and snack operations in North and South America. This operating division is further segmented into Frito-Lay North America, Sabritas, Gamesa, and Latin America Foods. It also contains Quaker Foods North America, although no Frito-Lay products are sold or distributed under that business unit. Food and snack sales in North and South America combined made up 48 percent of PepsiCo's net revenue as of 2009. Frito-Lay North America Inc. is the division which controls Frito-Lay product research and development, sales, and distribution within the U.S. and Canada. Its primary brands include
Lay's Lay's is a brand of potato chips, as well as the name of the company that founded the chip brand in the United States. The brand is also referred to as Frito-Lay because both Lay's and Fritos are brands sold by the Frito-Lay company, which ha ...
and Ruffles potato chips,
Doritos Doritos () is an American brand of flavored tortilla chips produced since 1964 by Frito-Lay, a wholly owned subsidiary of PepsiCo. The original Doritos were not flavored. The first flavor was Toasted Corn, released in 1966, followed by Taco in ...
tortilla chips,
Tostitos Tostitos is a brand of Frito-Lay that produces different tortilla chips and a range of accompanying dips. Varieties There are many varieties of Tostitos chips: * Tostitos ''Gold'' (and bite size ''Gold'') - a thicker and larger version of t ...
tortilla chips and dips,
Cheetos Cheetos (formerly styled as Chee-tos until 1998) is a crunchy corn puff snack brand made by Frito-Lay, a subsidiary of PepsiCo. Fritos creator Charles Elmer Doolin invented Cheetos in 1948, and began national distribution in the U.S. The initi ...
cheese flavored snacks,
Fritos Fritos is an American brand of corn chips and dipping sauces that was created in 1932 by Charles Elmer Doolin and produced since 1961 by the Frito-Lay division of PepsiCo. Fritos are made by deep-frying extruded whole cornmeal, unlike the simi ...
corn chips,
Rold Gold Rold Gold refers to first a company and then a remaining brand of pretzels, now owned by Frito-Lay. The company, originally named "American Cone and Pretzel Company", was founded in 1917 by Philadelphia businessman Lorraine Schumaker. Run for i ...
pretzels, Sun Chips, and
Cracker Jack Cracker Jack is an American brand of snack food that consists of molasses-flavored, caramel-coated popcorn, and peanuts, well known for being packaged with a prize of trivial value inside. The Cracker Jack name and slogan, "The More You Eat The ...
popcorn. Products made by this division are sold to independent distributors and retailers, and are transported from Frito-Lay's manufacturing plants to distribution centers, primarily in vehicles owned and operated by the company. ''Sabritas'' and ''Gamesa'' are two of PepsiCo's food and snack business lines headquartered in
Mexico Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
, and they were acquired by PepsiCo in 1966 and 1990, respectively.
Sabritas Papa Sabritas is a Mexican snacks company. They are best known for manufacturing chips. History Sabritas was founded in 1943 by Pedro Antonio Marcos Noriega as Golosinas y Productos Selectos in Mexico City. It produced and sold potato chips, c ...
markets Frito-Lay products, such as Cheetos, Fritos, Doritos, and Ruffles, in Mexico. It also distributes local brands such as Poffets, Rancheritos, Crujitos, and Sabritones.
Gamesa Gamesa (formerly Galletera Mexicana S.A. de C.V. "Mexican Biscuit Company") is Mexico's largest manufacturer of cookies. The company also makes flour, ready to eat cereals and other related products. It is headquartered in San Nicolás de los Gar ...
is the largest manufacturer of
cookies A cookie is a baked or cooked snack or dessert that is typically small, flat and sweet. It usually contains flour, sugar, egg, and some type of oil, fat, or butter. It may include other ingredients such as raisins, oats, chocolate chips, nuts ...
in Mexico, distributing brands such as Emperador, Arcoiris, and Marías Gamesa.


Central and South America

PepsiCo's ''Latin Americas Foods'' sells Frito-Lay branded snack foods in Central and South America. Its portfolio of brands includes Lay's, Cheetos, Ruffles, and Doritos, as well as local brands such as Fandangos, Lucky, Stiksy, Pingo d'Ouro, Baconzitos and Torcida snacks in Brazil (sold under the brand ''Elma Chips'') and ManiMoto in Colombia.


Europe

Frito-Lay snacks are distributed in Europe under the ''PepsiCo Europe'' operating division, previously PepsiCo International. Products include: Walkers Crisps, Doritos, Paw Ridge, Smiths, Cheetos, Duyvis, Snack-a-Jacks, Twistos, and Solinki. PepsiCo maintains manufacturing plants in Europe, the largest of which are two snack manufacturing and processing plants located in
Leicester Leicester ( ) is a city status in the United Kingdom, city, Unitary authorities of England, unitary authority and the county town of Leicestershire in the East Midlands of England. It is the largest settlement in the East Midlands. The city l ...
and
Coventry Coventry ( or ) is a City status in the United Kingdom, city in the West Midlands (county), West Midlands, England. It is on the River Sherbourne. Coventry has been a large settlement for centuries, although it was not founded and given its ...
in England. In
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...
and
Portugal Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of ...
, operates the subsidiary
Matutano Matutano (officially ''Matutano Snack Ventures, S.A.'') is a producer and distributor of snacks and potato chips with headquarters in Barcelona, operating the markets of Spain and Portugal (here through its subsidiary ''Matutano Unipessoal Lda.'') ...
brand.


Asia, Middle East and Africa

Frito-Lay products sold under the ''PepsiCo Asia, Middle East & Africa'' division represent the smallest (as of 2010) proportion on a revenue basis. However, its distribution is growing more quickly than Frito-Lay's primary markets. While the primary global Frito-Lay brands are sold in some parts of these regions, many snack food products have been created to match local taste and cultural preferences. In India, one of these is
Kurkure Kurkure is a brand of spiced crunchy puffcorn snacks made up of rice, lentil and corn, owned by PepsiCo. The snack was originated in India and was launched in 1999 in the country. The snack is currently being manufactured and sold in India, Pak ...
Twisteez, a potato-based snack food produced in flavors popular in the country such as "Masala Munch". Frito-Lay has also employed alternate distribution means in these regions. In South Africa, it hired delivery drivers who had grown up in their delivery areas, with the intent of "making the product seem less foreign".


Products

While the product catalog varies significantly by country, PepsiCo divides its snack products into two primary brand categories: those produced within North America, and those produced outside of North America. In certain regions of the world, the company's snack food products are produced under regionally specific names such as
Sabritas Papa Sabritas is a Mexican snacks company. They are best known for manufacturing chips. History Sabritas was founded in 1943 by Pedro Antonio Marcos Noriega as Golosinas y Productos Selectos in Mexico City. It produced and sold potato chips, c ...
,
Elma Chips Elma Chips is a Brazilian snacks company and its main industrial unit is in Curitiba, capital of the Brazilian state of Paraná. The company is managed by Frito-Lay, a subsidiary of the American branch of PepsiCo. History Elma Chips was found ...
and Walkers. The primary snack food brands and products produced under the Frito-Lay name include
Fritos Fritos is an American brand of corn chips and dipping sauces that was created in 1932 by Charles Elmer Doolin and produced since 1961 by the Frito-Lay division of PepsiCo. Fritos are made by deep-frying extruded whole cornmeal, unlike the simi ...
corn chips,
Cheetos Cheetos (formerly styled as Chee-tos until 1998) is a crunchy corn puff snack brand made by Frito-Lay, a subsidiary of PepsiCo. Fritos creator Charles Elmer Doolin invented Cheetos in 1948, and began national distribution in the U.S. The initi ...
cheese-flavored snacks,
Doritos Doritos () is an American brand of flavored tortilla chips produced since 1964 by Frito-Lay, a wholly owned subsidiary of PepsiCo. The original Doritos were not flavored. The first flavor was Toasted Corn, released in 1966, followed by Taco in ...
and
Tostitos Tostitos is a brand of Frito-Lay that produces different tortilla chips and a range of accompanying dips. Varieties There are many varieties of Tostitos chips: * Tostitos ''Gold'' (and bite size ''Gold'') - a thicker and larger version of t ...
tortilla chips,
Lay's Lay's is a brand of potato chips, as well as the name of the company that founded the chip brand in the United States. The brand is also referred to as Frito-Lay because both Lay's and Fritos are brands sold by the Frito-Lay company, which ha ...
potato chips, Ruffles chips, and Walker's potato crisps (distributed in the UK and Ireland under the Walker's brand and in the rest of Europe under the Lay's brand)—each of which generated annual worldwide sales over $1 billion in 2009. Frito-Lay also comprises multiple brands outside of the chip category, including
Rold Gold Rold Gold refers to first a company and then a remaining brand of pretzels, now owned by Frito-Lay. The company, originally named "American Cone and Pretzel Company", was founded in 1917 by Philadelphia businessman Lorraine Schumaker. Run for i ...
pretzels,
Cracker Jack Cracker Jack is an American brand of snack food that consists of molasses-flavored, caramel-coated popcorn, and peanuts, well known for being packaged with a prize of trivial value inside. The Cracker Jack name and slogan, "The More You Eat The ...
popcorn snacks, and TrueNorth nut clusters and nut crisps. In India, Frito-Lay uses its international brands as well as
Uncle Chipps Uncle Chipps is a brand of potato chips that is marketed in India. It was launched on 1992 by Amrit Agro Ltd. which was later taken over by Frito Lay (owned by PepsiCo), India in 2000. History Until 1998, the Delhi-based Uncle Chipps was the ma ...
, a homegrown brand that it bought out in 2000. Kurkure, an Indian snack developed and produced by PepsiCo India, announced on March 31 that it was now available in Canada, UAE, and the Gulf region as well. Also, in
Poland Poland, officially the Republic of Poland, is a country in Central Europe. It is divided into 16 administrative provinces called voivodeships, covering an area of . Poland has a population of over 38 million and is the fifth-most populous ...
, there is a subsidiary brand called 'Star Chips' (a snack company). A Polish version of Lay's also exists in the country, based in
Grodzisk Mazowiecki Grodzisk Mazowiecki is a town in central Poland with 29,363 inhabitants (2011). It is 30 km. southwest of Warsaw. Between 1975 and 1998 it was situated in the Warszawa Voivodeship but since 1999 it has been situated in the Masovian Voivodesh ...
.


References


External links

*
Smiths Snackfood Company (Australia)

Walkers Crisps (UK)
* {{PepsiCo PepsiCo subsidiaries Snack food manufacturers of the United States Companies based in Plano, Texas Food and drink companies established in 1961 1961 establishments in Texas 1965 mergers and acquisitions