History of lays

In 1932 salesman Herman W. Lay opened a snack food operation in Nashville, Tennessee
and, in 1938 he purchased the Atlanta Georgia potato chip manufacturer "Barrett Food
Company," renaming it "H.W. Lay & Company." Lay criss-crossed the southern United
States selling the product from the trunk of his car. In 1942, Lay introduced the first
continuous potato processor, resulting in the first large-scale production of the product.

The business shortened its name to "the Lay's Company" in 1944 and became the first
snack food manufacturer to purchase television commercials, with Bert Lahr as a
celebrity spokesman. His signature line, "so crisp you can hear the freshness," became the
chips' first slogan along with "de-Lay-sious!" As the popular commercials aired during
the 1950s, Lay's went national in its marketing and was soon supplying product
throughout the United States.

In 1961, the Frito Company founded by Elmer Doolin and Lay's merged to form Frito-
Lay Inc., a snack food giant with combined sales of over $ 127 million annually, the
largest of any manufacturer. Shortly thereafter, Lays introduced its best-known slogan
"betcha you can't eat just one." Sales of the chips became international, with marketing
assisted by a number of celebrity endorsers.

In 1965, Frito-Lay merged with the Pepsi-Cola Company to form PepsiCo, Inc. and a
barbecue version of the chips appeared on grocery shelves. A new formulation of chip
was introduced in 1991 that was crisper and kept fresher longer. Shortly thereafter, the
company introduced the "Wavy Lays" products to grocer shelves. In the mid to late
1990s, Lay's modified its barbecue chips formula and rebranded it as "K.C. Masterpiece,"
named after a popular sauce, and introduced a lower calorie baked version and a variety
that was completely fat-free (Lay's WOW chips containing the fat substitute olestra).

In the 2000s, kettle cooked brands appeared as did a processed version called Lay's Stax
that was intended to compete with Pringles, and the company began introducing a variety
of additional flavour variations.

Frito-Lay products currently control 55% of the United States salty foods marketplace.

International
Main article: Walkers (snack foods)

Walkers is a snack food manufacturer in the United Kingdom best known for
manufacturing crisps. PepsiCo has owned the Walkers crisp label in the United Kingdom
since 1991 and distributes Lay's product via this brand name. The logo for the British
version is notably similar to the American brand, featuring a red ribbon around a yellow
sun. The other Frito-Lay brands are also distributed through the Walkers label.

In Argentina, Lays was commercialized before 2001 with the name Frenchitas and
Chizitos for the Cheetos.

In Australia, Pepsico acquired the The Smith's Snackfood Company in 1998 and
marketed Frito-Lay products under that label, using the name Thins. After Thin's was
sold to Snack Brands Australia (Owned by Arnotts), Smith's produced a line of potato
chips under the Lay's brand for a brief period of time. The Lay's line was eventually
rebranded in 2004 as Smith's Crisps, while the traditional Smith's line was renamed
Smith's Crinkles. Thins is still sold in Australia as a direct competitor to Smith's Crisps.

In Canada, the chips are distributed through the Lay's label.

In Mexico, Pepsico acquired Sabritas S. de R.L. in 1966. Lay's along with other products
such as Cheetos, Fritos, Doritos and Ruffles are marketed under the Sabritas brand. The
logo for the Mexican company sports the red ribbon, but it has a stylized smiling face
instead of the sun. It controls around 80% of the market there.

In Israel, the Lay's label is distributed with the name Tapochips (‫)תפוצ'יפס‬

In Germany, Lay's are sold in three varieties: Lay's, Lay's Light and Lay's Sensations
(Thai Sweet Chili/Red Paprika/Oven Roasted Chicken and Thyne - [available in
Cologne/Aachen only through the German locations of Delhaize). Lay's Super Chips
(Heinz Ketchup/Mexican Pepper/Perfect Pickles/Salt 'n' Pepper [all through Delhaize)
and Lay's Baked Chips (Mediterranean Herbs/through Delhaize). As with Doritos, Lay's
are manufactured, distributed and imported in Germany by Frito Lay's Benelux division,
Smith's Food Group. Several flavors as noted above are only available through Delhaize
(Belgian supermarket chain)] which has opened 2 locations in Cologne and Aachen
(Delhaize Germany locations, Lay's Flavors Benelux).

• In September 2007, Lays changed their logo. It is similar to the previous one, but
with more of a 3D look and the letters 'a' and 'y' connected. The bags themselves
were also redesigned.

• In Brazil, chips are distributed under a Lay's sister-company, Elma Chips.

• In India, Bollywood superstar Saif Ali Khan and Indian cricketer Mahendra Singh
Dhoni endorse Lays.

Stax vs. Pringles

Stax are thicker and are less prone to breaking in the package. Pringles are lighter and
thinner. The shape of Stax is a simple curve, while Pringles are formed into a double-
curved saddle shape. Stax are gluten free, while Pringles contain wheat starch. Stax are
packaged in recyclable plastic packages while Pringles are packaged in cans consisting of
cardboard and metal. Pringles have more flavors, while Stax comes in cheddar, salt and
vinegar, original, sour cream and onion, ranch, and mesquite.

Pork Enzymes
Some Frito-Lay brand seasoned products, including some flavors of Lay's, contain pork
enzymes in addition to herbs, cheese and other seasonings. Frito-Lay's web site states that
they use enzymes from pigs (porcine enzymes) in some of their seasoned snack chip
products to develop 'unique flavors'. The presence of pig-derived ingredients makes them
haraam for Muslims to eat. Spotlight Halal has compiled a list of Lay's flavor varieties to
identify which Lay's flavor varieties contain pork enzymes.

Nutritional information
As a snack food, the Lay's brands contain very few vitamins and minerals in any variety.
At ten percent of the daily requirement per serving, vitamin C is the highest. Salt content
is particularly high, with a serving containing as much as 380 mg of salt.

A one ounce (28 gram) serving of Lay's regular potato chips has 130 calories and
contains ten grams of fat, with three grams of saturated fat. Kettle cooked brands have
seven to eight grams of fat and one gram of saturated fat but are 140 calories. Lays
Natural has nine grams of fat, two grams of saturated fat and 150 calories. Stax typically
contain ten grams of fat, 2.5 grams saturated fat and are 160 calories per serving. Wavy
Lays are identical to the regular brand except for a half-gram less of saturated fat in some
combinations. The various brands do not contain any trans fats.

The baked variety, introduced in the mid 90’s, features 1.5 grams of fat per one ounce
serving, and have no saturated fat. Each serving has 110 to 120 calories. Lay's Light
servings are 75 calories per ounce and have no fat.

Lay's Classic Potato chips were cooked in hydrogenated oil until 2007. Currently, the
chips are made with 100% pure sunflower oil.

There are many flavors of Baked Lays as well. Baked Lays are produced in cheddar,
barbecue, sour cream and onion, and original.

Flavours
Except for barbecue-flavour potato chips, which were introduced no later than 1958, up
until the last 20 years, the only flavour of potato chips had been the conventional one.
Despite an explosion of new flavours, the unadorned original is still the selection of 81%
of consumers.
In the United States, Lay's offers a number of flavour combinations, in addition to the
classic chips. Flavoured products in the traditional fried varieties include sour cream &
Onion, Barbecue, cheddar & sour cream, Hidden Valley Ranch, salt & vinegar, salt &
pepper, Flamin' Hot, dill pickle, limón (Lemon) and a thicker "Deli style" chip. Canadian
sellers have a number of varied flavours, with curry, ketchup, poutine, pizza, Fries'n
Gravy, roast chicken, smokey bacon, salsa, wasabi, spicy Indian masala and sea salt and
pepper brands available. The marketing success of these flavours in Canada sometimes
leads to a limited time offering of a flavour to the south, with the dill pickle recently
appearing in the United States after a successful run.

Interestingly the name 'sour cream' has got Lay's into a lot of confusion in some
countries. In India for instance the name was changed to American style cream and onion
after consumers reported their discomfort with the idea of 'sour' cream

In the baked products, there are classic, barbecue and sour cream & onion varieties. The
kettle cooked version includes original, sea salt & vinegar, mesquite barbecue and
jalapeño brands. Wavy Lay's have original, hickory barbecue, ranch and Au Gratin
flavours while Lay's Stax offers original, sour cream & onion, cheddar, barbecue, ranch,
pizza and salt & vinegar. The newest variety, Lay's Natural has thick cut barbecue and
sea salt brands.

The WOW! brand was rebranded in 2004 as Lay's Light after the olestra formula was
altered and the U.S. Food and Drug Administration allowed removal of warnings about
various health consequences of the fat substitute.

Outside North America, Lay's in Greece and Cyprus are made and packed by Tasty
Foods and Corina Snacks LTD, with Mediterranean flavours which include Feta cheese
flavour, Tzatziki flavour, Olive and Tomato, Oregano, Sea Salt & Black Pepper and
various more. There are hundreds of sub-variations of the Mediterranean line and the
company performs constant experimentations to create new flavours and adjust them to
each country's liking. In some countries such as Argentina variations of the
Mediterranean tastes exist include Olive Oil and Parmesan Cheese, Olive Oil and
Tomato, Olive Oil and Basil, Greek Tzatziki Cheese with onions, Lasagna, Beef
Carpaccio with Parmeggiano and Smoked Manchego Cheese. In Belgium there is a
version of Cucumber and Goats Cheese. Finally in Chile there is a version of Lemon and
Cilantro (Coriander) and Sour Cream and Onions.

In Australia, a cilantro version exists while a hot & sweet chili, sweet corn and cotija
cheese brand can be found in South America.

Another flavour sold primarily in southern Asia is called "Magic Masala." This flavour is
very popular in India, Pakistan, and Bangladesh. Flavours featured in Thailand include
Nori Seaweed, Basil, Squid, Spicy Chili Squid, Seafood and Mayonnaise, and Spicy
Seafood.
There are a number of unique products in the United Kingdom sold under the Walkers
label, including prawn cocktail, beef & onion, Greek kebab and Marmite yeast extract.
Under the Smith's label in Australia, unique flavours include Greek Feta & Herb and
Italian Tomato & Basil.

Russia has "Lay's MAX" chips (Chicken, Sour cream & Onion, Sour cream & Cheese,
Ham & cheese flavours) and some international "Lay's" flavours plus Russian "Lay's"
flavour - Mushrooms & Sour cream, Crab and Red caviar.

In Poland the chips flavours are: Green Onion, Mushrooms & Sour Cream, Chicken,
Original, Paprika, Hot pepper, Original, Ketchup, Fromage, new potates with basil. Also
there is Lays Apettite which is also part of lays and has the following flavours: Kebab,
Pepper and Cheese, Onion and Cheese.

In parts of South America (notably Argentina and Uruguay), Lay's flavoured products are
sold with the "Lay's Mediterraneas" label, and include such flavours as ham, tomato and
basil, tomato Parmesan, and oregano. Peru has "Lay's Sabores Peruanos" (Lay's Peruvian
Flavours), with flavours like queso andino (Andean cheese); also recently was released
Lay's Dips, that includes a "Peruvian Criollo Chili" sauce sachet.

In Ukraine there is crab, bacon, cheddar, and sour cream and green onion

In Thailand there is Classic, Sour Cream & Onion, Cheese & Onion, Mexican Bar-B-Q,
Japanese Nori Seaweed. Flavours also come and go usually with an international theme,
for example: French Mayonnaise, Balsamic Vinegar and Salt (England), Garlic Soft
Shelled Crab (Hong Kong), Soy Sauce, Salmon Terriyaki (Japan), Lobster, Bacon &
Cheese (America). Also traditional "Thai" flavors include Tom Yum, Thai Chili Paste,
Thai Seafood Dip, Chili and Lime. Popular flavors are often kept in circulation longer.

There are currently 12 regular Lay's flavours in Canada, though there are more, available
only in certain parts of the country. The flavours available nationwide are the following:
Classic (yellow), BarBQ (black), Salt & Vinegar (teal), Ketchup (dark red), Wavy
Original (red), Dill Pickle (bright green), Smokey Bacon (brown), Sea Salt & Pepper
(silver), Sour Cream & Onion (green), Roast Chicken (light brown) and finally Lightly
Salted (bright blue). Also, in select Canadian markets (Toronto & Vancouver) Lay's has
introduced international flavours such as "Spicy Curry" and "Spicy Indian Masala" to
appeal to a wider consumer group.

Lay's have entered the German market with some success in the last couple years. All 3
key Lay's brands are distributed with 2 flavours for each brand. The following flavours
are marketed in Germany:

• Lay's
o Lay's Natural
o Lay's Paprika (Bell Pepper)
 • Lay's Light
o Lay's Paprika (Bell Pepper)
o Lay's Salted/Natural

• Lay's Sensations
o Lay's Red Sweet Paprika (Bell Pepper)
o Lay's Thai Sweet Chili

Another history
AT A GLANCE:
In the summer of 1853, Native American George Crum was employed as a chef at an elegant resort
in Saratoga Springs, New York. One dinner guest found Crum's French fries too thick for his liking
and rejected the order. Crum decided to rile the guest by producing fries too thin and crisp to
skewer with a fork. The plan backfired. The guest was ecstatic over the browned, paper-thin
potatoes, and other diners began requesting Crum's potato chips
THE STORY
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DID YOU KNOW?

Invention: Potato Chips in 1853

Definition: noun / po·ta·to chips
Function: Snack food made of a thin slice of white potato that has been
cooked until crisp and then usually salted. Also known as
Saratoga Chips or potato crisps.
Patent: Never patented.

Inventor: George Crum (a.k.a. George Speck*)

Criteria: First to invent.
Birth: 1822 Saratoga Lake, New York
Death: 1914 Saratoga Lake, New York

Nationality: Native American

Milestones:
1853 George Crum invents the Saratoga Chip, a thin French fry, now known as the potato chip
1960 Crum opened his own restaurant, featuring potato chips in a basket placed on every table..
1895 William Tappendon of Cleveland, Ohio begins selling potato chips as a food in grocery stores

1908 Leominster Potato Chip Co., Leominster, MA (later changed the name to Tri-Sum)
1910 Mikesell's Potato Chips, Dayton, Ohio.
1910 George Dentler, Houston, Texas.
1913 Dan Dee Pretzel and Potato Chip Company, Cleveland, Ohio.
1918 Num Num, Cleveland, Ohio
1919 Blue Bell - Illinois
1921 Wise Delicatessen Company, Berwick, Pennsylvania
1921 Utz - Hanover, Pennsylvania. started as the Hanover Home Brand Potato Chips
1921 Magic Food Co, later Golden Flake*, Birmingham, Alabama.
1924 Moore's, Bristol, Virginia.
1926 Scudder's - Monterey Park, California
1930 Better Made - Detroit, Michigan
1932 Lay's - founded by Herman Lay of Nashville, Tennessee
potato chips, potato chip, saratoga chip, potato crisps, george crum, george speck, native
american, better made, wise, utz, frito-lay, invention, history, inventor of, history of, who invented,
invention of, fascinating facts.

The Story
As a world food, potatoes are second in human consumption only to rice. And as thin, salted, crisp
chips, they are America's favorite snack food. Potato chips originated in New England as one man's
variation on the French-fried potato, and their production was the result not of a sudden stroke of
culinary invention but of a fit of pique.

In the summer of 1853, Native American George Crum was employed as a chef at an elegant resort
in Saratoga Springs, New York. On Moon Lake Lodge's restaurant menu were French-fried
potatoes, prepared by Crum in the standard, thick-cut French style that was popularized in 1700s
France and enjoyed by Thomas Jefferson as ambassador to that country. Ever since Jefferson
brought the recipe to America and served French fries to guests at Monticello, the dish was popular
and serious dinner fare.

At Moon Lake Lodge, one dinner guest found chef Crum's French fries too thick for his liking and
rejected the order. Crum cut and fried a thinner batch, but these, too, met with disapproval.
Exasperated, Crum decided to rile the guest by producing French fries too thin and crisp to skewer
with a fork. The plan backfired. The guest was ecstatic over the browned, paper-thin potatoes, and
other diners requested Crum's potato chips, which began to appear on the menu as Saratoga
Chips, a house specialty.

In 1860 George opened his own restaurant in a building on Malta Avenue near Saratoga Lake, and
within a few years was catering to wealthy clients including William Vanderbilt, Cornelius Vanderbilt,
Jay Gould, and Henry Hilton. His restaurant closed around 1890 and he died in 1914 at the age of
92.

The idea of making them as a food item for sale in grocery stores came to many people at around
the same time, but perhaps the first was William Tappendon of Cleveland, OH, in 1895. He began
making chips in his kitchen and delivering to neighborhood stores but later converted a barn in the
rear of his house into "one of the first potato chip factories" in the country.

At that time, potatoes were tediously peeled and sliced by hand. It was the invention of the
mechanical potato peeler in the 1920s that paved the way for potato chips to soar from a small
specialty item to a top-selling snack food. For several decades after their creation, potato chips
were largely a Northern dinner dish.

In 1921, Bill and Sallie Utz started the Hanover Home Brand Potato Chips in Hanover,
Pennsylvania. Salie Utz used her knowledge of good Pennsylvania Dutch cooking to make the
chips in a small summer house behind their home. The hand-operated equipment Salie used made
about fifty pounds of potato chips per hour. While Salie stayed home making chips, Bill delivered
them to "mom and pop" grocery stores and farmer's markets in the Hanover, PA and Baltimore, MD
area.

Out in Monterey Park, California the Scudders company started making potato chips in 1926. Laura
Scudder is credited with developing the wax paper bag for potato chips which made a wider
distribution possible because of its preserving properties. Prior to this bag potato chips were
dispensed in bulk from barrels or glass display cases.
In 1932, Herman Lay founded Lay's in Nashville, Tenn., which distributed potato chips from a
factory in Atlanta, Ga. Herman Lay, a traveling salesman in the South, helped popularize the food
from Atlanta to Tennessee. Lay peddled potato chips to Southern grocers out of the trunk of his car,
building a business and a name that would become synonymous with the thin, salty snack. Lay's
potato chips became the first successfully marketed national brand.

The industry that George Crum launched in 1853 continues to grow and prosper. Potato chips have
become America's favorite snack. U.S. retail sales of potato chip are over $6 billion a year. In 2003
the U.S. potato chip industry employed more than 65,000 people.

*George Speck was born to Abraham and Catherine Speck. George also used the name Crum, as
his father did while working as a jockey.

Market conditions
The New American Potato Chip

By Jennifer Maslow

The simple potato chip has come a long way in the past decade. Today, the chip aisle in nearly every store
—from mainstream supermarket to neighborhood specialty shop—is packed with selections featuring a
range of flavors, textures, and styles to suit all tastes.

Just ten years ago, the potato chip section presented only a handful of choices—plain, rippled, maybe an
MSG-laden barbecue- or cheese-flavored variety, and possibly sour cream and onion. Adventurous
consumers would have been hard-pressed to find much more than that even in bold specialty food stores.

As the American palate has become more daring, supermarket shelves have featured novel flavors such as
Guacamole, Cheddar and Salsa, Honey Barbecue, and even Ketchup. At specialty shops and delis, you’ll
find all-natural, hand-cooked Cajun Dill, Gorgonzola and Red Onion, and Chesapeake Crab chips, as well
as more esoteric snacks made from sweet potatoes, taro, and other root vegetables.

The Evolution of an American Favorite

Since its invention in 1853 (see sidebar, page 39), the potato chip has become a staple of the American diet,
and it has ranked as the country’s number-one snack food for more than 50 years. Mintel’s 2003 survey of
more than 17,000 consumers reveals that potato chips are eaten in 85 percent of U.S. households, and it
predicts consumption levels to rise. In response, specialty chip manufacturers are taking the simple
combination of potatoes, salt, and oil to new levels. A nation of snackers—and the food retailers that cater to
them—is eager to see what crazy and creative concoctions chippers will think of next.

Beth Haskell, owner of Kelsick Gardens in Gloucester, Va., remembers when her store only carried Plain,
Barbecue, and Sour Cream and Onion chips. “Ten years ago, there weren’t any fancy flavors—just the
basics,” she recalls. Over the past several years, the market has witnessed an influx of exciting new flavors,
including Salt & Vinegar, Mixed Vegetable, Honey Mustard, and Jalapeño Heat. “Consumers love having all
the choices, ” she says. “But plain, old Lightly Salted is still my number-one seller.”

Mintel research confirms the trend. According to its report, “U.S. Salty Snack Trends,” 81 percent of potato
chip eaters buy the unadorned varieties. Barbecue and Sour Cream and Onion tie for second most popular,
yet these rankings reflect the fact that most chips are purchased in supermarkets, convenience stores and
other mass merchandisers, which usually sell products from Frito-Lay, Procter & Gamble, and other snack
food heavyweights.
Specialty food buyers lean toward slightly more exotic flavors. At Kelsick Gardens, Route 11’s Dill Pickle
ranks second. In Columbus, Ohio, the best-selling chips at Katzinger’s Delicatessen are Zapp’s Regular;
Sour Cream & Creole Onion and Honey Mustard tie for second, reports Co-owner Diane Warren. Cajun Dill
and Jalapeño have loyal followings, and Terra Chips also sell well.

In weight-conscious Miami Beach, Epicure Market stocks a surprisingly diverse selection of specialty chips.
“Chips are big here. They’re the first thing people see when they walk in the store,” says Grocery and
Cheese Buyer Sarah Freedman-Izquierdo. Offerings in the “chip nook” include William Poll Baked Potato
Thins and Good Health Polenta Chips. The top seller is Jack & Ollies Salt and Cracked Black Pepper.
Imported from England by Chelsea Market Baskets in New York City, these chips have developed a legion
of fans in South Florida. “They’re nice and crunchy, and they really satisfy that craving for a good plain,
lightly salted chip,” Freedman-Izquierdo says.

Hearty Enough to Patch a Roof

Texture is crucial when it comes to the enjoyment of potato chips; a good bag sates the desire for a crispy,
crunchy snack. While many snackers are content with a thin, fragile chip such as Lay’s, specialty chip
connoisseurs prefer the range of extra-crunchy chips now available. Specialty chippers combine thick slices
of potatoes, high-quality oils, and small-batch cooking methods to create chips with that coveted crunchy
texture.

At Gramercy, La.-based Dirty Potato Chips, President Ron Zappe strives to produce thick chips that stand
up well to dipping. “I want them to be hearty enough to patch a roof or fix a flat tire,” he jokes. “Cooking the
chips slowly at low temperatures in peanut oil produces the crunch and the curl. We like to get 15 crunches
out of each chip.”

According to Jim Green, public affairs manager at Kettle Foods, Salem, Ore., “Kettle brand chips are
crunchier than most chips and have a hearty, nutty flavor.” Cutting the potatoes into thick slices and stirring
them by hand while they cook in open fryers produces these results, he explains.

To produce a lighter, crisper chip, U.K.-based Jack & Ollies flash-fries its chips for just seven to eight
minutes, according to Export Manager Steve Thomas. “We don’t want to disguise the natural flavor of the
potatoes, so we leave the skin on and use sunflower oil, which is neutral-tasting, ” he says.

Cooking potato chips by hand in small batches is the hallmark of specialty chippers, and it is what
distinguishes their products from mass-market brands. “Because the water content of potatoes can vary
widely we have no formulated cooking time. We have to monitor each batch of our potato thins continuously
throughout the baking process,” explains Stanley Poll, president of New York City-based William Poll, Inc.
“It’s labor-intensive, but it results in an exceptional product that just can’t be mass-produced.”

Zappe sums up the ideology of specialty chippers. “We can’t make them cheaper, but we can take our time
and make them better,” he says. Competing with mainstream snacks is not even a consideration, according
to most small-batch manufacturers. “There will always be a demand for high-end chips,” says Zappe. By
using labor-intensive methods such as hand-peeling, hand-raking, and hand-sorting, these specialty
companies produce artisan-quality chips unrivaled by factory-formula brands.

Olive Oil Potato Chips

In 1999, Good Health Natural Foods, Northport, N.Y., introduced a line of olive oil chips made with non-
GMO Russet potatoes from the Pacific Northwest. Later that year, Terra Chips debuted an olive oil chip
made from Red Bliss potatoes.

Because of its smoke point, a special cooking process is needed to fry in olive oil. Instead of the more
typical flash-frying methods, Good Health chips are cooked in vacuum-sealed cauldrons at a lower
temperature for a longer time. “The longer cooking time allows the thick-sliced potatoes to cook all the way
through, and the low temperature prevents the olive oil from breaking down,” explains President François
Bogrand.

Terra Chips uses a similar “vacuum fry technology” to cook in olive oil. “Our method allows for less oil
absorption. That means a healthier, more intensely flavored chip,” says Adam Levit, vice president of sales
and marketing of the Melville, N.Y.-based company, a division of the Hain Celestial Group.
Beyond the Basic Potato
Terra Chips found its niche by “doing what the major chip companies can’t or won’t do in order to produce
alternative snacks,” says Levit. “The industry saying ‘no smaller than a golf ball, no bigger than a baseball’
doesn’t apply to us. When you’re using the vegetables we use—sweet potatoes, taro, and yucca, for
instance—you can’t control ingredients like that.”

“Because potatoes vary slightly from crop to crop, the texture of the chips can be subtly different from one
batch to the next,” notes Sarah Cohen, president of Route 11 Potato Chips, Middletown, Va. From
November to April, Route 11 produces chips made from an heirloom variety of sweet potato, the Hayman,
which is grown exclusively on the eastern shore of Virginia. “We get them fresh out of the ground,” says
Cohen. “They are delicate and difficult to produce, but they make wonderful chips.”

Both Terra Chips and Good Health produce chips made from exotic blue potatoes native to Peru that are
now grown in the Pacific Northwest. Since Terra Chips teamed up with Jet Blue Airlines in 2002 to supply
Terra Blues to air travelers, interest in the unusual chips has soared.

Chelsea Market Baskets premiered an exciting addition to its line of imported chips at the Winter Fancy
Food Show in San Francisco. Currently in testing, Jack & Ollies Parsnip Chips will be available for retail this
spring. Barbara Crockett, marketing manager at Chelsea Market Baskets, reports huge interest already. “I
expect 80 percent of our existing customers to place orders for the parsnip chips. And 20 new buyers have
expressed interest as well,” she notes. Crockett describes the flavor as “an earthy sweetness studded with
the heat of cracked black pepper.”

The Heat is On
One of the most notable flavor trends, chippers agree, is hot and spicy. After discontinuing Habanero Chili
with Ginger, Kettle Foods introduced Jalapeño with Tequila and Lime. “We feel like we need to offer one
especially hot chip to satisfy that niche,” notes Green.

Blair’s Death Rain chips fill the niche for the most extreme chili heads. “Our company began with hot sauce,
and we saw a demand for heat in other segments. People want snacks that are really hot,” believes Blair
Lazar, president of the Highlands, N.J.-based company. The basis of Death Rain chips is the habanero chili,
and the company labels each flavor with a heat scale rating: Barbecue rates “medium,” Cajun is “hot,” and
Habanero is “XXX hot.” One of Blair’s Death Rain’s best-selling varieties, Buffalo Wing, is made with real
chicken flavor, vinegar, and lots of heat to reproduce the experience of eating a plate of hot wings.

Spicy flavors are especially popular in the south. Dirty’s Zappe reports that Cajun is a top-seller in and
around Louisiana, and in Texas there’s tremendous demand for Jalapeño Heat. In Miami, there is a strong
following for Route 11’s Mama Zuma’s Revenge Habanero chips, according to Epicure’s Freedman-
Izquierdo.

Healthier Options
Although chips have traditionally been considered a junk food to be avoided by the health-conscious,
Americans love potato chips too much to forsake them. So manufacturers have created healthy alternatives
that satisfy the desire to snack. Even in bikini-wearing Miami Beach, Epicure Market sells “an absurd
amount of chips,” says Freedman-Izquierdo. “For weight-conscious people there are a lot of great low-fat
products.”

Baked Kettle™ Krisps, made with whole, unpeeled, sliced potatoes, contain 1.5 grams of fat per serving.
“We use only expeller-pressed safflower oil, which is 80 percent mono-unsaturated,” says Kettle Foods’
Green. “Sales have steadily increased, and consumers say the Krisps fit into the Weight Watchers program.”
William Poll Baked Potato Thins—now made from Yukon Gold potatoes—are hearty and substantial,
intensely flavored with fresh herbs, and contain only three grams of fat per serving.

With chip manufacturers offering such a diverse range of products, retailers have to do little to encourage
sales beyond opening a bag for customers to sample. The packaging itself can be enough to pique
shoppers’ interest, believes Freedman-Izquierdo. “A vivid photo on the the bag or a clear container
displaying the hand-crafted chips can get customers’ attention,” she explains. Whether customers are
shopping for plain potato chips or Zesty Tomato Mixed Vegetable chips, “you want their mouths to water.”
Good Fats + Oils
Healthier oils, such as sunflower oil and corn oil are used in making all Frito-
Lay snack chips. These oils are higher in polyunsaturated and monounsaturated
fats that have been proven to reduce LDL (bad) cholesterol and maintain HDL
(good) cholesterol levels, which have been associated with a reduction in the
risk of heart disease.
Trans Fats
Since 2003, Frito Lay discontinued the use of hydrogenated and partially
hydrogenated oils in making our snack chips. All of our chips contain 0 grams
of trans fat per serving. In some of our seasonings, there are trace amounts of
partially hydrogenated oils, but in all cases, the amount of trans fat is so small
that it is considered insignificant by the U.S. Food and Drug Administration
(FDA) or equal to 0 grams of trans fat for FDA labeling regulations. Salt
Frito-Lay snacks have less sodium than you think. Despite their salty taste,
chips are no higher in sodium than many foods such as some breads and
cereals. Chips taste saltier because salt is on the chips’ surfaces. In other foods,
salt is mixed and baked in which can hide the salty taste. Frito-Lay does not use
iodized salt.

Swot analysis
Frito-Lay, Inc. - SWOT Analysis
Datamonitor, Feb 2009, Pages: 20

The Frito-Lay, Inc. - SWOT Analysis company profile is the essential source for top-level
company data and information. The report examines the company’s key business structure
and operations, history and products, and provides summary analysis of its key revenue lines
and strategy.

Frito-Lay is a wholly owned subsidiary and snack food division of PepsiCo. It is engaged in the
manufacturing and distribution of a range of snack foods. The company offers corn chips,
potato chips and other snack foods. The company primarily operates in North America. It is
headquartered in Plano, Texas and employs 45,000 people. The company recorded revenues
of $11,586 million during the fiscal year ended December 2007 (FY2007), an increase of 6.8%
over FY2006. The operating profit of the company was $2,845 million during FY2007, an
increase of 8.8% over FY2006.

Scope of the Report

- Provides all the crucial company information required for business and competitor
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- Contains a study of the major internal and external factors affecting the company in the form
of a SWOT analysis as well as a breakdown and examination of leading product revenue
streams
- Data is supplemented with details on the company’s history, key executives, business
description, locations and subsidiaries as well as a list of products and services and the latest
available company statement

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Objectives:
1. Understanding the market position of the brand.
2. Identification of customer satisfaction with the brand.
3. To identify the attributes consumer look for while making
purchase.
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