By Facsimile: (202) 383-6610
Mark Schechter, Esq.
1299 Pennsylvania Ave.,
Re: Frito-Lay Investigation
We appreciate your offer to make available a Frito spokesperson to answer
some of concerns about marketing practices in the salty snack food industry. As you
requested, we have compiled a short list of the topics we would like that person(s) to
be able to address.
Initially, it would be helpful to gain an overview of the following areas:
- Frito's organizational structure for sales, marketing and distribution;
- The types of accounts Frito has and how each type is approached for
purposes of sales and marketing and distribution;
- Frito's delineation of geographic areas for purposes of sales and marketing
and distribution; and
- Frito's growth and the demise of its competitors (both national and regional)
over the past four or five years.
In addition, we would like the person(s) to speak to the following areas within
a time frame of the past couple of years:
- Promotional programs involving payments of any kind (rebates, discounts,
bonuses) to retailers in exchange for exclusivity or a specific percentage of
shelf space, including the goals of such programs, how successful such
programs are/have been in achieving the goals, and how success is
measured. If there are differences among the various types if retail channels,
it would be helpful to know.
- Promotional programs involving payments of any kind (rebates,
discounts, bonuses) to retailers designed to grow sales of Frito products,
including the success of such programs in achieving the goal(s) and how
Frito measures success. If there are differences among the various retail
channels, again it would be helpful to know.
- Any programs/policies regarding shelf space goals and what those goals are,
taking into account, if appropriate, differences among the retail channels. In
addition, it would be helpful to know why Frito has such goals, how successful
the programs are/have been in reaching the goals, and how Frito measures
Obviously, this list is not exhaustive of the questions that may come up during the
course of the meeting, but it should be a starting point for discussion. Please give
me a call if you have any questions about any of the topic areas listed above.
Nina B. Hale