Frito-Lay hasn't stocked chips at Loblaws stores for over a week: is the dispute a sign of things to come? (2024)

FAQs

What is the dispute between Loblaws and Lay's chips? ›

In February, Frito-Lay halted shipments to Loblaw stores after the grocer allegedly refused a price increase brought forward by the food manufacturer. The situation left chip and snack food aisles of many Loblaw stores less full than usual.

Loblaws bringing Frito-Lay chips back to shelves, ending months-long pricing dispute. Loblaws will start restocking Frito-Lay products on Monday, ending a months-long absence due to a pricing dispute between the companies, CBC News has confirmed.

According to Frito-Lay Canada, the company was forced to adjust product pricing due to rising manufacturing costs and ongoing supply chain issues stemming from the COVID-19 pandemic. After Loblaw Companies refused to accept the higher prices, Frito-Lay made the decision to stop supplying Loblaw stores.

The chips went off the shelves earlier this year after Frito-Lay attempted to increase prices it charges Loblaw Companies Ltd. for some products. After Loblaw refused, Frito-Lay yanked sales at the grocery giant. The tensions were stoked by supply chain issues and inflating food prices which heightened the pandemic.

“We have now mutually resolved matters with one of our valued retail partners, and we thank our loyal consumers, our employees and our customer partners for their support through this challenging time,” said Frito-Lay spokesperson Sheri Morgan.

A Cambridge-based snack manufacturer and a Canadian grocery store giant have taken the chip off their shoulders and come to an agreement to put the salty snacks back on shelves. The empty chip aisles in Loblaws-controlled stores are finally getting restocked with all of the favorite Frito-Lay products.

Citing the rising costs of expenses like shipping, ingredients and packaging, Frito-Lay says they've had to make "adjustments to our prices that are consistent across the marketplace." Loblaws Canada said that higher costs from suppliers can lead to "difficult conversations" on carrying some products.

The strike ended July 23 with the workers getting a contract with the company that guarantees one day off a week. The new contract does away with "suicide shifts", although mandatory overtime is still in effect.

Subscribe to Retail-Insider. We recently learned that Frito-Lay, a brand owned by giant PepsiCo Canada, opted to stop selling to Loblaws after the retailer refused requests by Frito-Lay to increase their prices. Food manufacturers, when selling products to grocers, have suggested retail prices.

Although the corn that goes in Frito chips isn't in short supply, it's become more expensive. This inflation is also creating bottlenecks, disrupting supply chains.

What happened to the Fritos? ›

Sadly in 2018, after having been in production nearly 80 years, Frito-Lay North America decided to halt production of our beloved BBQ Fritos and replaced them with the lesser Honey BBQ Twists & Chili Cheese flavors.

Lay's Classic potato chips - 235 g | Loblaws.

Supply won't keep up

Many growers sold supplies early in the season to save on storage, which demands a lot of energy to control for temperature and humidity. That means fewer potatoes are available to export as we move into the year.

The availability of virtually all components required to build a desktop computer has been greatly impacted by the global chip shortage. The two main manufacturers of CPU chips, AMD and Intel, have struggled to keep up with the rising demand of their products as a result of the global pandemic.

The situation has gutted their revenue by an estimated $210 billion in 2021, according to a study by AlixPartners, and auto manufacturing could suffer through 2023. The shortage forced carmakers to halt production, including Ford Motor, General Motors, Toyota, Nissan, Subaru and Stellantis (formerly Fiat Chrysler).

Potato chip giant Frito-Lay cuts off Loblaw in dispute over price hikes.

Is there a shortage of Fritos? Not exactly. According to a report by The Dallas Morning News, two years into the pandemic, consumers are still wondering why they can't find certain snack foods at the store. That includes Fritos, a staple among Texans who cherish Frito Pie.

Hundreds of Frito-Lay workers in Topeka, Kan., are in their third week of a strike, citing so-called "suicide shifts" and poor working conditions at the manufacturing and distribution plant at a time when the company's net revenue growth has exceeded all of its targets.

They've returned for the second summer in a row. When Frito-Lay discontinued Fritos Bar-B-Q Corn Chips, well, let's just say that people weren't happy. Luckily, the snack returned last year for a limited time, and the brand has decided to bring them back again for summer 2021, a PR rep confirmed to Best Products!

If you've been pining for Frito's Bar-B-Q since the product was discontinued in 2018, you're in luck because it's making a major comeback. Summer might be winding down, but Frito-Lay is bringing back one of its most popular flavors to help keep the essence of barbecue season alive.

Who bought Frito-Lay? ›

Key Takeaways. PepsiCo began making strategic acquisitions beyond the beverage market in 1965 when it purchased Frito-Lay. In 2001, Pepsi acquired Quaker Oats for $13.8 billion.

The Reason You're Looking at a Bag Half-Full

In the manufacturing industry, “slack fill” is empty space that's intentionally placed around a product. The idea is that the extra room can as a buffer to protect your Lays, Ruffles or Tostitos from damage.

It turns out, that empty space in your chip bag isn't just air — it's Nitrogen gas, which is meant to stop the chips from breaking in the package as well as expel air, which actually turns the chips stale. There's even a name for the emptiness — “functional slack-fill.”

The recall is specifically for Lay's classic potato chips, according to the U.S. Food and Drug Administration. The FDA said that these bags possibly contain undeclared milk ingredients from sour cream and onion potato chips.

PLANO, Texas – May 4, 2023 – Frito-Lay today issued a voluntary recall of a limited number – 146 bags – of 13 oz. and 15 5/8 oz. of Lay's Classic Potato Chips that may contain undeclared milk ingredients from sour cream and onion potato chips.

After a nearly three-week strike, hundreds of Frito-Lay employees in Topeka, Kansas have ratified a revised contract Saturday addressing what union leaders had previously described as a diminished quality of life stemming from work conditions, including long hours, forced overtime, and stagnating wages.

About two-thirds of the 850 workers at the Topeka factory joined the walkout that began July 5 and ended July 23. They will return to work this week. Frito-Lay, the maker of Cheetos, Doritos, Ruffles and other packaged foods, is a unit of PepsiCo, the New York-based food and beverage giant.

Lay's was the leading potato chip brand of the United States with about 3.6 billion U.S. dollars worth of sales in 2021/2022, accounting for approximately 41 percent of the potato chip market that year. Potato chips are one of the subcategories of the retail snacking department. They are made out of potatoes.

Why is there a potato shortage? Due to the cold climate and frost, potatoes are not growing the way that they're meant to as they're producing extra sugar. Because of this, only 50% of farmer's potatoes are sellable and this is likely to be the case until mid 2023.

Parents of teenagers are the largest chip and biscuit buyers, parents of primary school-aged children top both categories of chocolate snacks, and parents of toddlers head for the lollies aisle,” Ms. Levine said.

Why are Fritos so unhealthy? ›

"Per serving size of 31 chips, this provides an outrageous 10 milligrams of total fat with 1.5 milligrams of saturated fat," Campbell says to explain why these Fritos are among the unhealthiest chips on store shelves.

In the United States, Fritos is one of the oldest and most widely recognized brands of corn chips. While corn chips and tortilla chips are both made from corn, the corn in tortilla chips is subjected to the nixtamalization process, resulting in a milder flavor and aroma, and a less rigid texture.

It's because of labor shortages and supply-chain issues, from food manufacturers to grocery stores. There simply aren't enough people to “make the goods, move the goods and sell the goods,” says Jim Dudlicek, a representative for the National Grocers Association.

Fritos BBQ-flavored corn chips make a permanent return to store shelves nationwide this fall after being discontinued back in 2018 (although it made limited-time returns in 2020 and 2021).

Fritos is an American brand of corn chips and dipping sauces that was created in 1932 by Charles Elmer Doolin and has been produced since 1961 by the Frito-Lay division of PepsiCo.

C.E. Doolin launched “Fritos” in 1932, inspired by a recipe he had purchased from Gustavo Olguin, a Mexican-American restaurant owner in San Antonio, where Doolin had worked as a fry cook.

It's called shrinkflation. And, it's not just potato chips. All kinds of products are getting smaller. The size of the bag may be the same or the product package maybe has a change of shape.

In September 1961, The Frito Company and H.W. Lay & Company merged to become Frito-Lay, Inc., combining their headquarters in Dallas, Texas.

Baked Lay's: The Best Choice for Low Calories

“You'll save 40 calories and 6.5 g of fat per serving by choosing Baked Lay's over regular Lay's Classic Potato Chips,” Namkoong says. “The low calories and fat make this the healthiest choice when you can't resist chips.”

Feb 27, 2023. Potato squeeze being felt in organic russets. The 2022-23 storage crop of all potatoes is down as much as 5% from the previous year, a shortage being most acutely felt in the organic russet potato sector.

How long will the chip shortage last? ›

The most optimistic take is that the semiconductor supply chain could return to “normal” by the end of 2023. Others think that the shortage could continue well into 2024.

Some of the biggest names in the industry — including Tesla, BMW, General Motors and Ford — have been hurt by the shortage. When all is said and done, the global auto industry will crank out 4 million fewer vehicles this year than planned and forfeit $110 billion in sales.

Redesign products where possible – when a component is in short supply, companies should look to redesign, where possible, without this component. Utilise AI to help speed up the research and development process and aid in risk assessment, thus making the supply chain more efficient and streamlined.

Chip supply began to improve in 2022 and looks set to continue through 2023. Capacity was initially freed up due to weakness in some end markets, particularly PCs, smartphones and consumer electronics, where sales began falling in March 2022.

Many expanded their product stockpile to create a buffer against shortfalls. Companies have also boosted the accuracy and length of demand forecasts, and some have used pricing to steer customers toward their more widely available products.

Frito-Lay main competitors are Odwalla Juice Co, Land O Lakes Dairy Foods, and Keebler Company. Competitor Summary. See how Frito-Lay compares to its main competitors: American Greetings has the most employees (27,500).

The recall is specifically for Lay's classic potato chips, according to the U.S. Food and Drug Administration. The FDA said that these bags possibly contain undeclared milk ingredients from sour cream and onion potato chips.

We're still producing Lay's Lightly Salted potato chips; however, we have temporarily paused the production of a few flavors. We know that's disappointing, but rest assured, our plans are to start back production as soon as possible.

Lay's is a brand of potato chips with different flavors, as well as the name of the company that founded the chip brand in the United States. The brand is also referred to as Frito-Lay because both Lay's and Fritos are brands sold by the Frito-Lay company, which has been a wholly owned subsidiary of PepsiCo since 1965.

Did Lay's stop making Hot Lay's? ›

Thanks to a fan petition, Lay's is now bringing back its original Flamin' Hot chips. The Frito-Lay brand changed the formula for the flavor and was met with great displeasure from those that loved the flavor.

The Reason You're Looking at a Bag Half-Full

In the manufacturing industry, “slack fill” is empty space that's intentionally placed around a product. The idea is that the extra room can as a buffer to protect your Lays, Ruffles or Tostitos from damage.

Every bag of Lay's Potato Chips in the US is made from our very own chip-perfecting potatoes grown on over 100 farms across the US and a handful in Canada. Stay tuned for more information about our farms across North America and to hear from some of our farmers!

The only brand affected by the recall is the Restaurant Style White Corn Tortilla Chips. If you suspect that you have these chips in your possession, look for a best-by date of May 23, 2022, according to the FDA enforcement report. Also, keep an eye out for product lot codes 122051## and 123051##.

The sodium content in chips may negatively impact your cardiovascular health. A high intake of sodium can cause an increase in blood pressure, which can lead to stroke, heart failure, coronary heart disease and kidney disease.