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FOOD

Times Staff and Wire Reports

Frito-Lay Signs Pact for P&G;'s Olestra: The Plano, Texas-based PepsiCo Inc. unit, the largest U.S. snack maker, agreed to pay Procter & Gamble Co. at least $10 million for increased supplies of the no-calorie, no-fat oil over the span of the contract. The agreement will give Frito-Lay Co. more olestra than competitors will get for about a year. The snack maker has committed to buy a certain amount of olestra from a $160-million plant P&G; is building if Cincinnati-based P&G; completes the factory a year sooner than planned. Other snack firms will have to wait about a year after the plant is finished before they can get access to more olestra. News of the agreement, in the works for about a year, comes as the Justice Department confirmed last week it’s investigating possible anti-competitive practices in the salty-snack industry.


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