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Memorandum U.S. Department of Justice Seal

Subject: Telephone Interview with [REDACTED TEXT (b7D)] Date: June 4, 1996

60-2096-0002
To: Frito Lay File From: Nina Hale

[REDACTED TEXT (b7D)] has a lot to say about his experiences with Frito in which he was outbid for space on the shelf. The most interesting incident that he had to relate to us was what he called Frito's "magic". This is where Frito sponsors a contest whereby a store manager can win a trip to [REDACTED TEXT (b7D)] or some other place by putting up displays throughout the store. This way everywhere a customer goes, they run into Frito's. At the end of the year, the sales numbers for Frito are very high and Frito claims that [REDACTED TEXT (b7D)] of the sales are coming from the displays when in fact it's more like [REDACTED TEXT (b7D)] of the sales. These display spaces are what he categorizes as end caps, free standing islands, towers, and bread tables.

distribution:       RWF, DNK, HALE, PTACEK, ALEXANDER - EAG, SWEENEY, JONES, BEN-DAVID, CASE, CHRON, ARCHIVE

He says that the Nielsen survey numbers will tell you that [REDACTED TEXT (b7D)] of grocery sales are off-shelf or off the gondola. [REDACTED TEXT (b7D)] are off the display shelf. In fact, for Frito, those percentages are reversed.

[REDACTED TEXT (b7D)] is carrying the products of [REDACTED TEXT (b7D)] He is carrying [REDACTED TEXT (b7D)] He carries a full line of snack foods and crackers in addition to potato chips and tortilla chips.

So/So # 11475