Frito-Lay Inc.

In 2018, Frito-Lay North America accounted for at least 25 percent of PepsiCo's annual sales.In 1932, Kansas City, Kansas-born Charles Elmer Doolin, manager of the Highland Park Confectionery in San Antonio, Texas, purchased a corn chip recipe, a handheld potato ricer, and 19 retail accounts from a corn chip manufacturer for $100, which he borrowed from his mother.

The Frito Company headquarters also moved to Dallas to capitalize on the city's central location and better availability of raw materials.

[8] 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.

[9] In 1931, Charlotte, North Carolina-born salesman Herman Lay (1909–1982) sold potato chips in the Southern United States out of his car.

Lay hired his first salesman in 1934, and three years later had 25 employees and a larger manufacturing facility where he produced popcorn and peanut butter sandwich crackers.

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.

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 becoming the first potato chip brand to be sold nationwide (in all 50 U.S. states) in 1965.

In an interview with Forbes 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 ruled against it.

[11] 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 (1966), Funyuns (1969), and Munchos (1971).

The spicier composition proved successful, and Doritos quickly became the second most popular Frito-Lay product line, second only to Lay's potato chips.

[11] Frito-Lay acquired GrandMa's Cookies in 1980, originally founded by Foster Wheeler in Portland, Oregon in 1914,[17] which launched nationwide in the United States in 1983.

These short lived Frito-Lay products included Stuffers pre-filled dip shells and Toppels crackers, which came pre-topped with cheese.

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.

[22] 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, and in 1998 by multiple international acquisitions and joint ventures, including Smith's Snackfood Company (Australia), as well as Savoy Brands (Latin America).

Through a joint-venture with Walkers, a UK chip and snack manufacturing company, Frito-Lay increased its distribution presence in Europe.

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",[28] particularly involving snack foods made with more natural ingredients,[29] according to reports from within its industry at that time.

[31] In 1967, the company introduced a cartoon spokesman, the Frito Bandito, which became the subject of criticism from Mexican-American groups, who expressed concerns that it portrayed a Mexican stereotype.

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.

[7] In the late 1990s, the use of genetically modified organisms (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, became the target of lobbying efforts from both proponents and opponents of GMOs.

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.

[34][35] These conditions, which allegedly include forced overtime and 84-hour workweeks, led to a strike involving hundreds of workers at the Topeka location.

Food and snack sales in North and South America combined made up 48 percent of PepsiCo's net revenue as of 2009.

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.

Products include: Walkers Crisps, Doritos, Paw Ridge, Smiths, Cheetos, Duyvis, Snack-a-Jacks, Twistos, and Solinki.

Frito-Lay products sold under the PepsiCo Asia, Middle East & Africa division represent the smallest (as of 2010) proportion on a revenue basis.

[44] 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 Twisteez, a potato-based snack food produced in flavors popular in the country such as "Masala Munch".

[48] 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.

Products arranged in the shape of Texas, where the company is based
A Lay's branded Ford E-350 truck in Rawlins, Wyoming . Frito-Lay operates around 22,000 vehicles, or 60,000 including PepsiCo. [ 38 ] [ 39 ]