Company Overview

Frito-Lay sells “little bits of gold.” That’s the literal translation from Spanish for one of the company’s most popular brands, Doritos. Other snack food products include such recognizable names such as Lay's, Ruffles, Tostitos, Fritos, Cheetos, Sun Chips, and Rold Gold. Although the Frito Company and H.W. Lay & Company did not merge until 1961 to form Frito-Lay, both companies were founded in 1932 by two separate entrepreneurs. Both began as small, local distributors, but the convergence of Frito and H.W. Lay built the largest snack producer in the United States. The company also distributes products to more than 100 countries. In 1965, a merger between Frito-Lay and the Pepsi-Cola Company formed PepsiCo, a joint venture offering beverages and snacks. Frito-Lay earns approximately half of PepsiCo’s revenue.

In 2006, growing concern with the obesity epidemic motivated the company to create 100-calorie-per-portion products. Frito-Lay has repackaged such products as Doritos and Cheetos this way, calling them Mini Bites. In 2007, Pepsi entered a joint venture with the Strauss Group, Sabra, and added healthier snack alternatives to the Frito-Lay roster. Strauss makes fresh hummus, spreads, Mediterranean salsas, and other vegetarian foods. And in 2008, the company introduced low-sodium versions of its top selling offerings, including Lay's and Ruffles potato chips, Tostitos tortilla chips, and Fritos corn chips under the Pinch of Salt name.