Frito-Lay Selects Tracy Locke Partnership as Promotions/Merchandising Agency of Record

December 17, 2001

PLANO, Texas - Frito-Lay North America announced today the consolidation of its U.S. promotional and retail merchandising activities with Tracy Locke Partnership (TLP), a leading marketing and promotions agency. The partnership will become effective next year.

The shift involves combining the marketing scale of Frito-Lay North America and Pepsi-Cola North America for all consumer promotions and customer marketing.

The consolidation extends the promotions and merchandising role of TLP related to Frito-Lay North America. TLP has been working with Frito-Lay and Pepsi-Cola on joint retail merchandising and promotions as well as customer marketing for the past several years. In addition, TLP serves as the promotion agency of record for several of Pepsi's largest bottlers.

"Frito-Lay and Pepsi-Cola will leverage this new agency partnership to combine our significant scale on a national basis," said John Compton, Frito-Lay Senior Vice President, Marketing. "We believe this agency consolidation will provide a more potent, more efficient marketing force that will help us achieve bigger and better growth-driving ideas.

Following a business review, the agency consolidation results in the end of a three-year relationship between Frito-Lay North America and Frankel & Company.

"We have been extremely pleased with Frankel & Company and are proud to have had them working on our business. After discussing this opportunity with both Frankel and TLP, we are convinced each is highly capable of managing our business," Compton said. "However, since the goal is to tighten our focus and build scale in this vital area, we ultimately selected TLP to lead these activities where Frito-Lay and Pepsi join forces in the marketplace."

The company did not disclose billings.