Frito-Lay seeks to double capacity.
Frito-Lay seeks to double capacity: Frito-Lay, Inc. plans to double
its capacity for making and selling salty snacks and cut its cost
structure over the next several years by reinventing the way it
operates, the food company told news sources. Frito-Lay intends to grow
its market position through new products and by refining its processes.
As the snack food unit of No. 2 beverage company PepsiCo, Inc.,
Frito-Lay holds just over half of the U.S. market for salty snacks with
products such as Lay's potato chips, Fritos corn chips and Tostitos
tortilla chips. The unit accounts for about two-thirds of PepsiCo's
revenue. Frito-Lay's 1997 acquisition of Cracker Jack from Borden
Foods was an example of the company's willingness to go beyond its
traditional potato and corn chip products into new snacks, and the
company has targeted other segments. Frito-Lay also is looking at
distribution channels where it does not have a significant presence.