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The History of Frito-Lay traces its roots to small street vendors selling five-cent corn curls and potato crisps which would eventually become a snack food giant.
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.
Two businessmen spotted an opportunity in the darkness of the Great Depression: Charles E. Doolin (Frito Company) and Herman Lay (Lay & Company).
Charles E. Doolin founded The Frito Company in 1932 selling Fritos corn chips for a nickel.
And a few years later in the late 1930s, the traveling salesman Herman Lay launched H.W. Lay & Company selling potato chips by the bag.
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.
In 1966, a 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 were at the top of their prospective leagues.
In 1965, the snack and beverage giants decided to merge, forming PepsiCo.
Pepsi wanted to sell Frito-Lay’s chips and their line of sodas side-by-side.
It would make the ultimate snack food pairing.
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, Frito-Lay was set for growth.
Lay’s potato chips had yet to expand to all 50 states. But with Frito-Lay, distribution of its products would be much easier.
By leveraging Pepsi’s coast-to-coast distribution channels, Lay’s was finally was a nationwide 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 with snacks that weren't necessarily healthy. But rising health consciousness in the 1990s signaled changing attitudes.
Frito launched Sun Chips, a line of whole grain crispy multigrain chips—marketed as a “healthier” choice for adults.
The gamble paid off, Sun Chips became Frito-Lay’s most successful new product launch in the ‘90s.
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, consumers were a little paranoid about genetically modified foods.
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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