Frito-Lay Company to Acquire Cracker Jack.

PLANO, Texas--(BUSINESS WIRE)--Oct. 8, 1997--The Frito-Lay Company, the world's largest manufacturer and marketer of snack foods, announced today the acquisition from Borden Foods of Cracker Jack, one of America's most enduring snack brands. The details of the transaction were not disclosed.

Introduced in 1893 in Chicago, Cracker Jack is the original candy-coated popcorn and peanut snack made famous for its toy prize inside. Today, more than 90 percent of Americans are familiar with the Cracker Jack brand with Sailor Jack and his dog, Bingo, displayed on the package. Each year more than 110 million prizes are created for Cracker Jack.

As part of Frito-Lay, Cracker Jack joins a family of powerhouse brands including such global multi-billion dollar brands as Doritos Tortilla Chips, Lay's Potato Chips and Cheetos cheese-flavored snacks.

"Cracker Jack is an America icon with universal appeal and tremendous brand equity. Our goal is to reinvigorate the Cracker Jack brand by providing product improvement news, expanding distribution and creating exciting national marketing and advertising programs," said Steve Reinemund, chairman and chief executive officer of the Frito-Lay Company. "This brand logically extends our business into sweet snacks while complementing our core business."

The Frito-Lay Company, maker of the world's favorite snacks, is the $10 billion snack foods division of PepsiCo. The company is the market leader in half of the world's top 10 snack chips markets with operations in 40 countries.

Cracker Jack Fun Facts

-- Since 1912, more than 17 billion toys have been included as prizes in Cracker Jack packages. Every year, more than 100 million toy prizes are used.

-- Since 1918, Sailor Jack and his dog, Bingo, have saluted every Cracker Jack package.

-- Stacked end-to-end, Cracker Jack boxes sold could circle the Earth more than 63 times.

-- Most sought after Cracker Jack prizes are toy rings that consumers sometimes use as engagement rings. George Peppard gives Audrey Hepburn a ring from a Cracker Jack box in the classic movie, "Breakfast at Tiffany's."

-- Vintage Cracker Jack toy prizes, such as the 1915 Joe Jackson baseball card, are valued at more than $7,000.

-- Alex Jaramillo is the nation's largest Cracker Jack toy prize collector with more than 20,000 valuable prizes.

-- Each year, millions of baseball fans sing, Take Me Out to the Ball Game, including the line, "Buy me some peanuts and Cracker Jacks/I don't care if I never get back." The song continues Cracker Jack's historical link to the national pastime.

-- Legendary Chicago Cubs broadcaster Harry Caray leads fans in his gravelly-voiced version of Take Me Out to the Ball Game during the seventh-inning stretch.

-- In 1993, Cracker Jack celebrated its 100th Anniversary with a commemorative set of reprinted 1915 miniature baseball cards and toy surprises.

-- Nearly 10 tons of popcorn are popped daily.

-- More than 1.5 million pounds of peanuts are used every year.

-- Every day, 3,000 pounds of molasses sweeten batches of Cracker Jack. -0-

SNACK FOOD MILESTONES

Frito-Lay

1932 The Frito-Lay Company is founded by Elmer Doolin in San

Antonio.

1932 Fritos Corn Chips are introduced.

1938 H.W. Lay & Company is founded by Herman W. Lay in Atlanta.

1938 Lay's Potato Chips are introduced.

1948 Cheetos are introduced.

1961 Frito-Lay, Inc. is formed when The Frito Company and H.W. Lay

& Company merge.

esigned into a bigger chip with more great

taste.

1996 PepsiCo s domestic and international packaged foods

businesses join to form the Frito-Lay Company.

1996 Baked Lay s are introduced and become the bigge 1908 Cracker Jack is immortalized in ears on packages.

Sailor Jack iracker Jack is introduced.

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