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Frito-Lay to market Sara Lee line

Published on .

PepsiCo's Frito-Lay unit and Sara Lee Corp. on Tuesday said they're forming an alliance to manufacture and market a line of single-serve baked goods carrying the Sara Lee brand and distributed by Frito-Lay. The agreement marks Frito-Lay's first push into sweets, beyond the company's Grandma's cookie brand. The marketers will likely introduce the baked goods in convenience stores after initial test markets. Asked whether the announcement nixes speculation that Frito-Lay is eying Keebler Co. as a possible acquisition, a Frito spokeswoman said, ``We're always looking for innovative ways to expand our business. While this is not an exclusive arrangement, this is the arrangement we've made.'' BBDO, New York, and DDB Needham Worldwide, Chicago, handle Frito's brands. Ammirati & Puris/Lintas, New York, handles Sara Lee bakery products.

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