Frito-Lay, Inc.: Subchips Multigrains
Performance Analysis.
Frito-Lay has well-known brands such as Lay’s®, Ruffles® potato chips, Fritos® corn chips, Doritos®, Tostitos®, Santitas® tortilla chips, Chee•tos® cheese-favored snacks, and Rold Gold® pretzels (see Exhibit 1). Eight of those snacks are in top ten best selling in the U.S. Frito-Lay’s business spans every aspect of snack-food production. It has 39 plants, 1600 distribution facilities and 10,000-person route sales teams serving over 400,000 retail customers each week national wide. In 1990, Frito-Lay has fulfilled over $3.5 billion sales in U.S. market.
The new product line of Sun-Chips™ Multigrain snacks will benefit from the excellence of Frito-Lay’s sales performance along with the current trend of “low-carbohydrate” craze. Based on the pre-market test analysis (PMT), national snack chip users are expected to purchase more than 31 million pound of Sun-Chips™ (see Exhibit 2). The sales price is $2.7 per pound (see Exhibit......
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Frito-Lay, Inc.: Subchips Multigrains
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