Frito-Lay
Largest global snack food company, subsidiary of PepsiCo.
Frito-Lay North America, Inc., doing business as Frito-Lay, is an American snack food manufacturer and a wholly owned subsidiary of PepsiCo. It originated from the 1961 merger of the Frito Company and H.W. Lay & Company, and its brands include Fritos, Cheetos, Doritos, Tostitos, Lay's, Ruffles, and Rold Gold. Through PepsiCo, it is the largest globally distributed snack food company, accounting for 40 percent of all savory snacks sold in the United States in 2009.
Quick Facts
- Predecessors
- The Frito Company; H.W. Lay & Company
- Founded
- 1961
- Founders
- Charles Elmer Doolin; Herman Lay
- Headquarters
- Plano, Texas
- Country
- U.S.
- Key people
- Steven Williams (CEO)
- Area served
- Worldwide
- Industry
- Food
Facts from the source article.
History
In 1932, Charles Elmer Doolin, a Kansas City-born manager of a San Antonio confectionery, bought a corn chip recipe, a handheld potato ricer, and 19 retail accounts for $100 borrowed from his mother. He founded The Frito Company in his mother's kitchen, producing Fritos corn chips at about 10 pounds per day, sold in 5¢ bags, with daily sales of $8 to $10 and profits averaging $2. A hammer press developed in 1933 boosted production to nearly 100 pounds daily, and by year's end lines operated in Houston and Dallas. The company moved its headquarters to Dallas for central location and raw material access. In 1937, a research lab opened, and new products like Fritos Peanut Butter Sandwiches and Fritos Peanuts joined Fritos and Fritatos potato chips (introduced 1935). In 1939, the company bought Fluffs pork skins and moved to a new facility on Wall Street; Alice Rupe, from Fluffs' all-woman crew, became assistant treasurer and manager in 1940 and treasurer in 1949. A western division opened in Los Angeles in 1941 with two sales routes, a prototype for the distribution system. The Frito Sales Company was formed in 1945 to separate sales from production, and six franchises were issued through the Frito National Company that year. By 1950, Fritos sold in all 48 states. The company issued its first public stock in 1954. In 1958, it entered the Midwest potato chip market by acquiring the Nicolay Dancey Company (maker of New Era chips). At Doolin's death in 1959, the company had over 40 products, plants in 18 cities, over 3,000 employees, and 1958 sales exceeding $50 million. By 1962, Fritos were sold in 48 countries.
Controversies and health concerns
In 1967, Frito-Lay introduced the Frito Bandito, a cartoon spokesman voiced by Mel Blanc, depicted with a sombrero, bandoliers, a handlebar mustache, and pistols. Mexican-American groups criticized it as a stereotype, leading to the removal of pistols and a thinning of the accent. The character was replaced in 1970 by The Muncha Bunch, then by W.C. Fritos based on W. C. Fields. In the late 1990s, as GMO use in farming rose, Frito-Lay became a target of lobbying from both proponents and opponents due to its large corn purchases. In late 1999, it asked suppliers not to use genetically engineered corn, and in early 2000 asked farmers not to grow genetically modified potatoes, citing consumer worries rather than protests from groups like the OCA or Greenpeace. A Greenpeace representative called the move a positive step. In 2012, PepsiCo stated a policy of adhering to local regulatory requirements on GMOs, allowing individual business units to choose based on regional preferences where legally approved.
Operations
As of 2010, Frito-Lay operates production plants, distribution centers, and regional offices in more than 40 countries, with its North America headquarters in Plano, Texas. Within North America, it owns or leases about 1,830 distribution centers, warehouses, and offices, and maintains 55 production plants. Its chief executive officer is Steven Williams. PepsiCo Americas Foods, which includes Frito-Lay North America, Sabritas, Gamesa, and Latin America Foods, along with Quaker Foods North America, accounted for 48 percent of PepsiCo's net revenue in 2009. Frito-Lay North America controls research, sales, and distribution in the US and Canada, with brands including Lay's, Ruffles, Doritos, Tostitos, Cheetos, Fritos, Rold Gold, Sun Chips, and Cracker Jack. Products are sold to independent distributors and retailers and transported in company-owned vehicles. Sabritas and Gamesa, acquired in 1966 and 1990 respectively, operate in Mexico; Sabritas markets Frito-Lay products and local brands, while Gamesa is Mexico's largest cookie manufacturer. Latin America Foods sells Frito-Lay brands and local brands like Elma Chips in Brazil, ManiMoto in Colombia, and Pepito in Venezuela.
Products
Other brands include Rold Gold pretzels, Cracker Jack popcorn, and TrueNorth nut snacks. In India, Frito-Lay uses international brands and Uncle Chipps (acquired in 2000); Kurkure, an Indian snack, became available in Canada, UAE, and the Gulf region in 2014. In Poland, a subsidiary brand called Star Chips exists alongside a Polish version of Lay's based in Grodzisk Mazowiecki.
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