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Of PepsiCo, Inc.'s four operating divisions, Frito-Lay North America is the most profitable, generating 39 percent of the parent company's operating profit, and it is also responsible for one-third of PepsiCo's overall revenues. Operating only in the United States and Canada, Frito-Lay North America runs about 50 food manufacturing and processing plants and approximately 1,700 warehouses, distribution centers, and offices.

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Other major brands include Cracker Jack candy-coated popcorn, Grandma's cookies, Quaker Chewy granola bars, and Munchies snack mix. In the United States, Frito-Lay is the leader in several snack categories: potato chips (Lay's, Ruffles), extruded snacks (Cheetos), corn chips (Fritos), tortilla chips (Tostitos, Doritos), multigrain chips (Sun Chips), and pretzels (Rold Gold). Led by such blockbuster brands as Lay's, with annual sales of $2.8 billion, and Tostitos, a $1.6 billion brand, Frito-Lay boasts no fewer than 15 brands whose sales each year exceed $100 million. History of Frito-Lay North Americaįrito-Lay North America is the dominant player in the salty snack category in the United States, with a 65 percent share of the market. These two savvy businessmen, who transformed a small, fragmented portion of the food business into the large, flourishing world of snack foods, created an industry based on unrivaled customer service and superior products. Lay of Nashville, Tennessee developed his business by selling a product that was familiar to people in his region, but later would become America's favorite potato chip.

Both men had the same objective in mind, and both shared the same basic business philosophy: 'Provide the customer with a product of the highest quality and value sell it for a fair profit and make service a fundamental part of doing business.'Įlmer Doolin of San Antonio, Texas started his company by purchasing the rights to a then unknown corn chip product that he would make famous.

In 1932, two young entrepreneurs independently started two separate companies that were thousands of miles apart.