THE MARKET ACHIEVEMENTS The food and wholesale bakery industry In 1954, the brand celebrated its 25th anniversary in the United States is a $90 billion business. by achieving $28 million in sales. Since then Within this universe, the world of salty ® has grown into a global powerhouse represents $20 billion in sales. Of the salty brand with over $600 million in sales. FRITOS® snack world, the category accounts for is the fifth-largest brand in the Frito-Lay portfo- approximately 4 percent of that consumption, lio behind Lays, , , and ®, which translated to nearly $700 million of retail but FRITOS® is arguably the brand with the most corn chips sales in 2000. FRITOS® is far and storied history because of its close ties to main- away the largest player in the category, and the stream America. Year after year, FRITOS® con- brand drives category growth. FRITOS® is the tinues to be one of the most recognizable of all only national corn chip brand; with a 93 percent consumer packaged-goods brands. When com- share of the market, as FRITOS® goes, so goes pared to other food brands, FRITOS® achieves the category. high scores because of its product quality, differ- Corn chips provide consumers with a snack- entiated nature, and reputation as a product that ing alternative to the larger and tor- delivers exceptional value. tilla chip categories. Frito-Lay sister products chip — with similar consistency to the present such as Lays®, Doritos®, and Tostitos® dominate HISTORY FRITOS®, but with the taste of a toasted tortilla. the potato and categories. FRITOS® was the first brand of what is now an Doolin recognized this crudely packaged snack as $11 billion food company, Frito-Lay, a product that would lend itself to merchandising Inc. At the very depths of the Great from the display racks he previously envisioned. Depression in 1932, a young Texan For $100, Doolin acquired the recipe, the crude named C. E. Doolin launched a ven- equipment for making the product, and the 19 ture that resulted in the establishment retail accounts in the San Antonio area. Thus, the of an entirely new and typically Frito Company was born. American industry. While operating Production soon moved from the family a confectionery in San Antonio, kitchen to production plants in Houston, Dallas, Doolin first envisioned merchandis- and Tulsa, and the company headquarters moved ing food products from display racks to Dallas. In 1945, the Frito Company granted to rather from the huge glass jars then the H. W. Lay Company exclusive franchise utilized. At the same time, he dis- rights to manufacture and to distribute FRITOS® covered a product known as a corn Brand corn chips in the Southeast. The following

30 chronology of events best reflects the evolution of Chips packaging was redesigned, with brighter The FRITOS® Brand has utilized celebrity the brand from its humble beginning to its present- colors and an updated logo. The year 1993 saw spokespeople throughout its history. From W. C. day prosperity: the launch of the “I Know What I Like and I Like Fields to country singers Mark Chesnutt and Reba • In 1949, the words “FRITOS®, Golden Chips of FRITOS®” campaign, and a year later, FRITOS® McEntire, the FRITOS® Brand has delivered a con- Corn” were printed on bags of FRITOS®. Brand SCOOPS!® was introduced to the market- sistent product even though the faces have changed. • In 1953, the Frito Kid was introduced, place. SCOOPS! was created to meet consumer Today, the FRITOS® Brand is repre- and three years later, he appeared sented by NASCAR superstar Jeff on the Today Show with Dave Gordon and his #24 Racing Team. Garroway. At the same time, the From 1998 to 2000, FRITOS® was Frito Company became the first an associate sponsor of Gordon’s Texas company to advertise on Busch Series Racing Team. the NBC Television network. The In 2001, FRITOS® and its sister Frito Kid represented the brand company, PEPSI, became associate until his retirement in 1967. sponsors on Jeff Gordon’s Winston • In 1958, FRITOS® adopted a Cup Racing Team. This valuable new theme, “Munch a Bunch! of partnership allows the FRITOS® FRITOS® Brand Corn Chips”; a Brand to market its product to rac- year later, Vice President Richard ing fans, who, as a group, are Nixon took a bag of FRITOS® becoming an increasingly larger to Nikita Krushchev as a symbol segment of mainstream America. of Americana. • The year 1961 was a landmark for BRAND VALUES the Frito Company, when they Nothing but FRITOS® gives you the merged with the H. W. Lay Com- satisfaction you need when you’re pany to form Frito-Lay, Inc. hungry. The classic corn taste and • In 1971 W. C. FRITOS®, a cari- the hearty crunch fill you up and cature of the popular actor W. C. hold you over. Nothing Satisfies Fields, was introduced as the new Like FRITOS®. The essence of the mascot for the brand. At this point brand can be captured in one state- in its evolution, the FRITOS® ment, “FRITOS® is the simple, brand eclipsed $200 million in hearty snack I can always count on sales and continued to build to satisfy my hunger.” momentum through the 1980s. The brand identity is character- ized as “classic, dependable, reli- THE PRODUCT able, substantial, and satisfying.” FRITOS® Brand Corn Chips are These unique product truths and made with fresh, whole kernels of corn; this fresh- desire for a FRITOS® corn chip that was con- values identify the brand. FRITOS® is truly a ness helps create the hearty corn taste for which ducive to dipping. Since then, SCOOPS! has symbol of Americana and the American dream as FRITOS® is famous. The corn arrives at the pro- grown to a healthy $140 million business. illustrated by the Frito Company’s roots in the duction facilities via railcar before being stored In 2000, FRITOS® adopted the tagline, Doolin family kitchen and its evolution as the and dried to exact moisture requirements. “Nothing Satisfies Like FRITOS®,” to commu- number-one snack company in the world. Ultimately, the corn is cooked to soften the ker- nicate the hearty, filling, and satisfying nature nels before they are ground into a thick corn that defines the product’s attributes. Today, the dough called “masa.” FRITOS® Brand supports nine flavored products The masa is then put through an extruder that and three unflavored (Original, SCOOPS!, and THINGS YOU DIDN’T KNOW ABOUT presses the dough at high pressure through nar- King Size FRITOS® Brand Corn Chips). The FRITOS® row slits, creating ribbons of FRITOS® product. Original FRITOS® Brand Corn Chip continues The ribbons are cut to the correct length to pro- to be the volume leader and is responsible for duce the classic FRITOS® shape. The strips of nearly half of the brand’s overall sales. ❍ The Frito Company’s Mexican restaurant, raw masa are then dropped directly into hot oil FRITOS® continually strives to innovate in Casa de FRITOS®, opened in 1955 in and fried at precise temperatures and duration. meaningful ways. The brand’s innovation comes Disneyland. The photo on the opposite page Once removed from the oil, the fried chips are from the desire to provide consumers with a con- is of Frito Founder Elmer Doolin and Walt allowed to cool before salt or one of nine other sistent product that delivers uncompromising Disney with the Frito Kid. flavors is applied. The seasoned chips are quality and value with each and every bag. ❍ The first FRITOS® recipe book was printed quickly sealed into packages for shipment to in 1935. stores nationwide. PROMOTION ❍ During its Silver Anniversary Year in 1957, A typical FRITOS® line produces over 1,000 One of the many strengths of the Frito-Lay FRITOS® sponsored the ABC Radio Network pounds of FRITOS® every hour, or over 5 million Company and the FRITOS® Brand in particular Program, Don McNeill’s Breakfast Club. pounds per year. Manufacturing plants are located has been the meaningful way in which advertis- ❍ The popularity of FRITOS® is evident in its throughout the country to minimize the time ing and merchandising have been married. The widespread availability: FRITOS® can be needed to bring the product to market. Over the FRITOS® Brand engages consumers both in their found just about everywhere, including 98 course of a year, over 80 million pounds of oil and homes and on their shopping trips through percent of the supermarkets and conven- 170 million pounds of corn are used in the pro- impactful advertising, promotion, and perhaps ience stores in the United States. duction of FRITOS® — enough corn to cover the most importantly, its impressive shelf presence. ❍ ® turf of 1,000 football fields. Frito-Lay sells over 1.2 billion bags of FRITOS® Over 250 million pounds of FRITOS were in a typical year. This volume provides over a bil- produced in 2000 —about the weight of 100,000 automobiles. RECENT DEVELOPMENTS lion shelf impressions that serve as miniature The “Munch a Bunch! of FRITOS®” campaign billboards. In the complex and crowded snack ❍ The “Family-Size” bag of FRITOS® in 1937 was modified and re-introduced in 1991, and for food world, FRITOS® and the other Frito-Lay cost 15 cents in the supermarket. the first time in 58 years, FRITOS® Brand Corn brands have an unequaled retail presence.

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