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Frito-Lay began in the early 1930s as two separate companies, The Frito Company and H.W. Lay & Company, both of which merged in 1961 to form Frito-Lay, Inc. Four years later in 1965, Frito-Lay, Inc. merged with the Pepsi-Cola Company, resulting in the formation of PepsiCo. Since that time, Frito-Lay has operated as a wholly owned subsidiary of PepsiCo.
Transcript of History Of Frito-Lay. The Frito Lay Company was founded by Charles Elmer Doolin in 1932 at the height of the Great Depression in San Antonio, Texas. When sales where not going to high and everything was basically broken, business was not booming.