Frito-Lay Pumps Up Wow Chips Campaign

PepsiCo Inc.’s Frito-Lay unit is introducing two new flavors and a new advertising campaign for its Wow chips that use the fat substitute olestra. The action comes as sales are sluggish for the world’s largest salty snacks company. The new Wow chips are fat-free versions of Tostitos and Ruffles Cheddar & Sour Cream. The five-week campaign will feature commercials on shows such as ABC-TV’s “Monday Night Football” and free samples in more than 5,000 grocery stores and more than 2,000 Wal-Mart stores. Frito-Lay’s sales have been flat for two months, just as Purchase, N.Y.-based PepsiCo has come to rely on the division more heavily amid a corporate restructuring. Sales of Wow chips in particular have gone from $41 million for the four weeks ended May 24 to $28 million for the four weeks ended Sept. 8. Analysts are blaming a lack of effective advertising for those figures. PepsiCo shares rose $1.56 to close at $31.31 on the NYSE.