Frito-Lay is a well-known company and parent company of many different snack food brands.
PepsiCo is one of the largest beverage companies but owns many different snack food brands.
Today, I will explain if Pepsi owns Frito-Lay and what the relationship is between Pepsi and Frito-Lay.
Interestingly, Frito-Lay is one of the most profitable companies under the PepsiCo umbrella.
Below, I will cover what brands Frito-Lay owns and whether Pepsi brought Frito-Lay.
Did PepsiCo Buy Out Frito-Lay?
Unless you looked carefully at the packaging, you would assume Frito-Lay is a stand-alone company.
Previously, Frito-Lay was an independent company, so here is how Frito-Lay and PepsiCo started working together and what the relationship is between them.
PepsiCo is divided into 7 company segments these are:
- Frito-Lay North America (which is Frito-Lay)
- Africa, the Middle East, and South Asia
- PepsiCo Beverages North America
- Quaker Foods North America
- Latin America
- Asia Pacific, Australia, New Zealand, and China region
PepsiCo beverages are the largest of these, and the retail sales of PepsiCo beverages such as Pepsi and Mountain Dew make up 32% of PepsiCo’s total yearly revenue (source).
However, this number changes slightly year on year.
Frito-Lay is the second largest segment and makes up roughly 25% of PepsiCo’s yearly revenue.
Due to the huge volume of products that Frito-Lay makes, they are produced in large factories.
Below is an inside look at How Frito-Lay makes the different brands of potato chips they sell:
What Are Brands Owned by Frito-Lay?
Frito-Lay owns quite several different brands; here is a summary of the leading brands that Frito-Lay owns, followed by a complete list.
Here is a list of all the brands Frito-Lay owns:
- Sun Chips
- Quaker – including Quaker Oats and Quaker Bars
- Frito-Lay Variety Packs
- Baked (not technically a brand, more on this below)
- Nut Harvest
- Maui Style
- Miss Vickies
- Rold Gold
- The Walking Taco
(source: Official Frito-Lay website)
The Baked brand is technically not a brand,
but is a range of unique products.
They are baked, not fried. These include:
- Lay’s Baked
- Cheetos Baked
- Ruffles Baked
- Tostitos Baked
What Company Owns Frito-Lay?
Frito-Lay has its own branded snack foods but also owns a range of different brands, such as Doritos.
Frito-Lay was previously its own company but is now a segment of another company.
This is what the company owns, Frito-Lay.
Frito-Lay accounts for about one-third of PepsiCo’s total sales and is on par with the number of sales that PepsiCo makes of its beverages, such as Gatorade and Mountain Dew.
However, surprisingly, Frito-Lay snack foods are the most profitable products that PepsiCo sells according to their annual reports.
Frito-Lay generates about 44% of profit (money after expenses), whereas PepsiCo beverages generate 20% of the profit.
Is Coca-Cola and Pepsi Two Different Companies?
Coca-Cola is arguably the most well-known cola soft drink in the world.
However, Pepsi is up there, and virtually everyone has heard of both.
Pepsi and Coke taste very similar but here’s if Coca-Cola and Pepsi are two separate companies or are owned by one company.
Funnily enough, Pepsi was initially invented to mimic the popularity of Coca-Cola, and that it did.
I explained how the first bottles of Pepsi came to be and the circumstances around how it was invented in this article about which came to first Pepsi or Coke.
PepsiCo and the Coca-Cola Company both also make snack foods
Pepsi and Coke are recognizable brands, but PepsiCo and the Coca-Cola Company also make snack foods.
One difference is that the Coca-Cola company is a partner with snack food brands. Whereas PepsiCo owns the snack food brands.
The Coca-Cola company only owns beverages, and they make and distribute 5 different types:
- Hydration (including water and sports drinks)
- Coffee & Tea
- Juices & Dairy
However, the Coca-Cola Company has a partnership with another brand that has a similar name called Coca-Cola Hellenic, which makes snack foods.
The brands that Coca-Cola Hellenic makes are:
- Bambi – Wellness
- Bambi – Zlatni Pek
- Bambi Napolitanke (wafers)
- Bambi Biskviti (biscuits)
- Tsakiris Chips
As you’re most likely aware, most fast food restaurants either serve Pepsi sodas or Coca-Cola sodas.
For example, McDonald’s only sells Coca-Cola sodas such as Coke, Fanta, and Sprite.
Whereas KFC sells Pepsi sodas, such as Pepsi, Mountain Dew, and Miranda.
Neither PepsiCo nor the Coca-Cola Company owns these fast-food restaurant chains.
Instead, they have partnerships in manufacturing and delivering these sodas to them.
What Is the Relationship Between Pepsi and Frito-Lay
Frito-Lay has been in operation for over 50 years and owns a range of snack food brands such as Doritos and Cheetos.
Many brands are often owned and produced by other companies, so this is what the relationship is between Pepsi and Frito-Lay.
Frito-Lay is one of the most significant company segments of PepsiCo.
PepsiCo beverage sales are about the same as Frito-Lay snack food sales.
With about 30% each of PepsiCo’s total sales in a year.
Therefore, Frito-Lay is a huge part of the PepsiCo company.
Is PepsiCo and Pepsi the Same Company?
Pepsi and PepsiCo have almost identical names.
However, it’s rare to hear any mention of PepsiCo, whereas you can see Pepsi almost every time you walk into a supermarket or convenience store.
So, below is a summary of whether PepsiCo and Pepsi are the same company.
Previously, the Pepsi brand and formula were owned by a Pepsi-Cola company.
But, when Pepsi-Cola and Frito-Lay merged, they decided on PepsiCo’s name for the entire company.
Is Frito-Lay Still Owned by Pepsi?
It’s somewhat commonly known that PepsiCo owns Frito-Lay.
The snack foods Frito-Lay makes go well with Pepsi sodas and other drinks.
However, brands’ ownership changes from time to time, so here is whether Pepsi still owns Frito-Lay.
Frito-lay is the snack food division of PepsiCo.
The Frito-Lay division of PepsiCo has over 30 different brands, including chips, corn chips, and what PepsiCo calls convenient foods.
These are products like oats and dips.
When Did Pepsi Buy Lay’s?
Lay’s is a trendy brand of potato chips but has not always been owned by PepsiCo.
Here is when Pepsi bought Lay’s and how it happened.
It’s common for PepsiCo to acquire different snack foods and beverage brands.
As well as sell brands they own.
However, the merger of Frito-Lay with Pepsi-Cola has been a very long partnership.
Interestingly, PepsiCo previously owned a few fast food chains, such as KFC and Pizza Hut.
But, the fast food restaurant division of PepsiCo split and is now under YUM! Brands.
I explained this in more detail in this article about whether Pepsi owns Taco Bell .
Why Is Walker’s Called Lay’s in America
Walker’s chips and Lay’s chips have identical logos, except for the brand name.
People from the UK are familiar with Walker chips, whereas, in the USA, Walker’s chips are scarce and only available at stores that sell international products.
Below is why Walker’s is called Lays in America.
Lay’s was previously called Lay & Company, after the person who founded it, Herman Lay, but later changed its name to Lays.
Lay’s is a brand owned by Frito-Lay, and PepsiCo owns Frito-Lay. Lay & Company merged with a corn chip company called Fritos in 1961.
Does Lay’s Own Doritos?
Doritos corn chips are viral and are on par with the popularity and availability of Lays.
Lay’s is owned by Frito-Lay, which owns a range of chip and snack food brands. But does Lay own Doritos?
PepsiCo also owns Frito-Lay. Frito-Lay has kept its brand name, even though it’s now under the PepsiCo umbrella of brands.
Therefore, Doritos is owned by two parent companies. First, PepsiCo, then Frito-Lay.