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In 1932 Elmer Doolin who was in the icecream business bought a recipe for corn chips from a Mexican man who was eager to leave the states and return home From him Doolin acquired 19 accounts and old manufacturing equipment in hopes to start an entirely new industry in America The first manufacturing plant for Fritos Corn Chips started out in Doolins mothers kitchen With a lot of hard work Elmers sales increased and new equipment and packaging were soon needed After WW II he would grant HW Lay and Company a source of potato chips and snack foods an exclusive franchise to manufacture and distribute Fritos Corn Chips The two companies would work close together and in 1961 they would merge Four years later Pepsi-Cola Company would also combine with Frito-Lay but with separate operating divisions to form a new company called PepsiCoConsumers in 1995 spent an estimated 132 billion on Frito-Lay snacks up 18 billion in 1994 PepsiCo 1995 Annual Report Currently Frito-Lay is still expanding its sales and serves all of the US markets In 1989 they reconstructed their business into 4 regional divisions to strengthen its channel distribution Their growth has continued and as of 1991 they had 22 Sales and Marketing areas in order to bring the decision process closer together Currently they are continuing to grow nationally and globally with distribution reaching nearly 400000 in retail vending and food service accounts around the country PepsiCo 1995 Annual Report They offer more than 100 product lines and several brand names such as Lays Ruffles Doritos Rold Gold and Tostitos The overall market share for tortilla and corn chips in 1993 accounted for 258 of retail sales and 278 of pound volume of the salted snacks market Frito-Lays market coverage involves intensive distribution by placing its products in convenience stores mass merchandisers supermarkets grocery stores and vending machines Todays average for the companys distribution amongst grocery and supermarkets has risen to
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