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The first half of the 20th century saw two world wars, the Great Depression, and the rise of radio and mass media.
Against this backdrop of global turmoil and sweeping change, humble origins spawned an iconic snack empire—the History of Frito-Lay traces its roots to small firms hawking five-cent corn curls and potato crisps which would transform into an indomitable chip giant, becoming one of the largest forces in food by the century’s close.
Over 70 plus years, Frito-Lay mirrored America's ascent, navigating economic turbulence, epidemiological shifts, and profound technological advancements while crisping its way to unprecedented snacking dominance.
In the early 1930s, the American snack food industry was still in its infancy, as the Great Depression had curtailed discretionary spending on items like chips and crisps.
But two savvy businessmen spotted an opportunity. Charles E. Doolin founded The Frito Company in 1932 to sell nickel bags of Fritos corn chips.
Just a few years later in the late 1930s, traveling salesman Herman Lay launched H.W. Lay & Company to peddle potato chips.
Though starting out as humble mid-century snack purveyors, the visionary founders laid the groundwork for an iconic merger.
Their two regional firms eventually combined in 1961 to form the mighty Frito-Lay corporation, which would go on to popularize favorites like Doritos, Cheetos and Lay's across the nation.
When Charles Doolin first conjured up the concept of Fritos in 1932, he likely didn’t foresee how rapidly production would scale.
Doolin peddled modest five-cent bags of the crispy corn chips from his San Antonio confectionary.
But the unassuming snack quickly caught on.
To keep up with demand, the fledgling Frito Company hammered out Fritos on a homemade contraption.
Daily output swelled from just around 10 pounds initially to some 100 pounds by 1933.
Doolin’s expanding enterprise recruited more helping hands and hammer presses to churn out the golden corn curls.
Within a few short years, the flavorsome Fritos were crisping their way into stores across Texas and beyond.
Frito-Lay drove full-steam into the 1960s boasting popular snacks like Lay’s, Cheetos and Fritos under its belt.
But in 1966, its new tortilla chip rollout stumbled out of the gate.
Doritos, while boasting a signature crunch, lacked the punch of flavor early testers craved.
The bland triangular chips were seen as a rare misstep for the food giant. Frito-Lay could have abandoned this snack misfire as a loss.
Yet they opted to double down, decisively re-launching Doritos a short time later with zesty taco and nacho cheese varieties. This refocused flavor positioning hit the target, and dynamite Doritos soon joined the company’s roster of smash hits.
By the mid-1960s, Frito-Lay and Pepsi-Cola sat atop their respective industries, peddling America’s favorite snacks and soft drinks.
In 1965, the snack and beverage giants made a blockbuster merge to form PepsiCo.
Pepsi envisioned showcasing Frito-Lay’s chips and their fizzy sodas side-by-side, making for perfect pop and snack pairings.
However, these visions of joint food and drink marketing were promptly dashed. The Federal Trade Commission wasn’t toasting this union, instead blocking synergistic Pepsi and Frito-Lay campaigns as potentially anti-competitive.
Still, while ruling out cross-promotion, the merger gave Frito-Lay distribution pipes into Pepsi’s sprawling global soda empire.
Following PepsiCo’s formation in 1965 by snack staple Frito-Lay and soda giant Pepsi-Cola, humble Lay’s was set for growth.
While currently peddled across the country, Lay’s potato chips had yet to hit all 50 states. But with Frito-Lay now under Pepsi’s umbrella, distribution hurdles dwindled.
By leveraging Pepsi’s sprawling system of nationwide bottlers and retailers, Lay’s broke through as America’s first coast-to-coast chip brand.
In just a year, the iconic rippled potato crisps covered the entire continental map. And Lay’s national footprint has only expanded since, as the perennial top seller continues climbing toward its crown as America’s favorite chip.
By the 1970s, Frito-Lay sat firmly atop the snack food world. But the chip-pusher soon faced an unlike foe—packaged goods titan Procter & Gamble.
In 1967, P&G unleashed Pringles, an uniform stack of nettlesome narrow canistered crisps.
Pringles cut straight into Frito-Lay’s potato chip stronghold, giving the market leader its first real challenger.
What’s more, P&G's innovation blitz in snacks continued through the decade, echoed by similar moves from rivals. With its domains encroached, Frito-Lay found itself squaring off against emboldened competitors—and a full-out snack food war.
By 1988, Frito-Lay’s snack food kingdom spanned everything from chips to dips.
But one snacking staple missing from its ranks was popcorn.
That changed when the company acquired upstart Smartfood. Founded just a few years prior, Smartfood had won over fans with its distinctively tangy cheese-dusted popcorn. But as a small outfit, growth potential was capped.
Frito-Lay offered a ticket to the big leagues, supplying ample resources to cascade Smartfood’s zesty kernels nationwide.
Soon, countless moviegoers and couch potatoes had a new favorite popcorn to keep them crunching through flicks and TV. In the decades since, Smartfood has cemented itself as a top microwaveable snack thanks to Frito-Lay’s boost.
Frito-Lay built an empire satisfying snackers’ cravings, not their nutrition. But rising health consciousness in the 1990s signaled changing attitudes.
Frito entered the decade by debuting Sun Chips, a line of whole grain crispy multigrain chips. Marketed as a “healthier” choice, Sun Chips were aimed to appeal to nutrition-minded adults.
The gambit paid off, as the wholesome offering became Frito-Lay’s most successful new product launch of the entire 1990s.
Sun Chips’ sales shine showed innovation towards wellness was a savvy strategy. And the line’s runaway success blazed a trail for future better-for-you products to enter Frito-Lay’s portfolio.
By the late 1990s, genetically modified crops were rising on farms, but consumer unease was rising faster.
As a massive procurer of corn and potatoes, Frito-Lay found itself center stage.
Anti-GMO activists pressured the snack seller to move away from manipulated ingredients. But rather than battling activists, Frito-Lay responded by asking suppliers to source non-GMO corn and spuds in 1999.
While a costlier choice, the savvy decision stemmed criticism and earned public goodwill. And by addressing worries early, Frito-Lay avoided pricier PR pains down the road.
In the decades since, the transparency has paid dividends, protecting both Frito-Lay’s image and bottom line through choppy GMO waters.
Frito-Lay might be known for chilling out snackers, but things turned fiery at one key production plant in 2021.
Hundreds of workers at the firm’s Topeka, Kansas facility went on strike that July decrying draining 84-hour workweeks.
Employees pointed to chronically understaffed lines forcing existing crews into mandatory overtime. Additionally, charges of high-pressure conditions and denial of vacation accrued.
Following weeks of mounting tensions, workers walked out for nearly three weeks seeking safer staffing levels from the snack titan.
Frito-Lay ultimately hammered out a deal addressing grievances like fatigue and overwork. And the rare worker revolt ended with a rest for the weary Topeka crew.
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