Feds No Longer in the Chips
A three-year federal investigation into the aggressive promotional practices of Plano, TX-based Frito-Lay has ended with no charges being brought against the company, Department of Justice officials announced.
The PepsiCo unit was alleged to have been buying shelf space in retail stores for the purpose of securing special promotions. The complaints were brought by smaller companies concerned over Frito-Lay’s control over more than half of the market.
“We feel the conclusion of the review speaks well of our business practices. We’re very pleased with the decision,” a Frito-Lay spokesperson said in a statement.
The Justice Dept. had asked for company documents about pricing practices and promotions, and U.S. investigators interviewed several Frito-Lay executives.
A number of companies, including St. Louis-based Anheuser-Busch Cos. and Columbus, OH-based Borden, Inc., quit the salty snack business after buckling under to stiff competition from Frito-Lay.
