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JUN 11 '96 9:03 FROM U S ATTORNEY PAGE.002
Memorandum U.S. Department of Justice Seal

Subject: [REDACTED TEXT (b7D)] Date: June 10, 1996

To: Mr. Roger Fones
Transportation, Energy & Agricultural
Section, Antitrust Division
Department of Justice
FAX 202-307-2784
From: W. Charles Grace
United States Attorney
Southern District of Illinois

[REDACTED TEXT (b4),(b7D)]

[REDACTED TEXT (b7D)] have seen empty shelf space that Frito Lay has bought from them that other regional chip companies [REDACTED TEXT (b7D)] previously had and could not get back. The managers have admitted it to them. [REDACTED TEXT (b7D)]

[REDACTED TEXT (b7D)]

Another tactic used is supermarket newspaper advertising, i.e., if your distributor don't participate and put a $100 ad with the supermarket full page ad, then you don't get a "secondary display space" on the floor, i.e. almost extortion.

[REDACTED TEXT (b4), (b7D)] Now, Eagle and Keebler are out of business. The FTC even approved Anheuser Busch's sale of four plants to Frito Lay for $135 million on May 3, 1996, sold Trademark to Proctor and Gamble, i.e., Pepsico.

Proctor and Gamble and Frito Lay have just inked an exclusive contract to build and share the only OLESTRA plant in the world through 1999. If Olestra takes off, then "Eagle" (P & G) and Frito Lay will have all the market, and be able to eliminate all regional companies.

[REDACTED TEXT]


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