Frito-Lay is a snack foods company owned by PepsiCo. It makes and markets corn chips, potato chips, and other snacks. The company has been producing Fritos since the 1920s and Lay’s potato chips since 1961. It operates under several subsidiary brand names. The company was founded as the Frito Company in 1948, by entrepreneur Elmer Doolin, who began selling fried tortilla chips made from his recipe called “Fritos” at his roadside restaurant in San Antonio, Texas. Here, let’s know about Frito Lay Net Worth.
The net worth of Frito lay is around the US $15 billion.
Market share
Frito-Lay, Inc. is the second-largest snack food company in North America. It was founded in Dallas, Texas in 1961 by its current CEO, Michael Anthony Anderson. As of 2017, Frito-Lay controls almost 70% of the U.S. snack chip market and holds a 9.2% share of the global snack food market.
The beginning
Frito-Lay began as two separate companies founded by Herman Lay and Denver Camp. In 1932, they merged to become Frito Company. Two years later, the company was renamed Fritos due to a trademark dispute over the Frito name with a Dallas-based barbeque restaurant. 1943 saw another shift for the company when it moved its headquarters from Dallas to Austin, Texas, and became known as Frito-Lay Incorporated.
Over the next few decades, the business grew and acquired more brands and production facilities across the country. In 1961, Frito Company merged with H.W. Lay & Company which was founded by Herman W. Lay in 1932 with its headquarters located in Nashville Tennessee. In 1965, Frito-Lay became a separate company from PepsiCo after being merged as a subsidiary of PepsiCo. In 1997 it was renamed from Frito-Lay Inc to Frito-Lay.
Products
Frito-Lay sells more than 100 brands in over 160 countries. Frito-Lay North America produces many snack foods under several brands. Its primary snack food brands are Fritos corn chips, Cheetos cheese-flavored snacks, Doritos tortilla chips, Tostitos tortilla chips, and Rold Gold pretzels. The company also produces Cracker Jack popcorn and Smartfood popcorn, SunChips multigrain snack chips, Lay’s potato chips (the second largest brand of potato chips in the U.S.).
How it grew
Frito Lay grew to become one of the most successful and profitable divisions of PepsiCo. Frito Lay had an excellent product lineup for their target market: “the young male consumer”. They knew what they wanted, and were always on the lookout for new items to add to their portfolio. They also invested heavily in advertising, especially television ads during sports programming (the Super Bowl). For example, Doritos chips originally became popular after running commercials during sporting events like baseball games. Frito Lay grew from a regional player in the snack food market to the number one market share leader using a single strategy: continuous innovation.
Innovation made Frito lay number one for four reasons:
- It created new products that people wanted,
- It increased sales of existing products,
- It provided more convenience for consumers, and
- It explored untapped markets.
The best way to create a winning product is by researching consumer demand. Find out what your customers want and give them exactly that—not too much, but not too little either.
Future
In 2017, Frito-Lay reported sales of $13 billion from more than 200 countries around the world. That puts it ahead of its competition by a margin that will continue to widen over time. The global salty snack market is expected to reach $100 billion by the next decade. This demand is driven by several factors including an increase in consumption of savory foods, growing population, urbanization, and increase in per capita income.
Some Facts
- Frito-Lay North America operates from more than 40 manufacturing facilities.
- The company was created by Charles Elmer Doolin (1873-1944), who began selling fried fruit pies in the Rio Grande Valley of Texas in 1898.
- Frito Lay makes more than 50 brands of snacks.
- It is the second-largest snack food company in North America by revenue after The Hershey Company.
The conclusion
Frito- Lay is the largest operating unit of PepsiCo’s North American Beverages division. Frito Lay has created a brand that is both relevant and valuable to its consumers. Frito Lay has been a leader in the snack food industry for years and is committed to producing products that will help people enjoy their lives even more. Frito Lay has been making quality products for over 75 years. But not all of their products are equal. Some are better than others. This company understands the importance of having a clear mission that aligns with its target market, and it shows in its results. The growth of Frito Lay is largely due to its success in entering new markets. For example, they have created a partnership with the NFL to create snacks for football games. They are also continuing to expand into international markets to add new consumers.
