Flamin’ Hot Cheetos Inventor Sues Frito Lay For Fraud +

Lawsuits over the rights to inventions that went viral aren’t new. But a new filing over a snack sensation is distinguished by its goal. The guy says he just wants the credit for coming up with Flamin’ Hot Cheetos. But you can bet there WILL be money involvded…

Richard Montañez - © 2023 - @siglodetorreon

It may seem like a small thing to some folks. But it’s a huge thing to, “Richard Montañez, a former senior executive at PepsiCo, Inc., perhaps best known as the man who invented Flamin’ Hot Cheetos and whose inspirational, rags to riches life story was the subject of last year’s hit film Flamin’ Hot.” So states the official news release from his lawyers. They, too, are treating it as a very big Deal (VBD).

The issues

Montañez, through his lawyers, is claiming he was, “the victim of fraud, racial discrimination, defamation and violations of California’s unfair competition law, according to a 62-page complaint filed against PepsiCo.”

“I created Flamin’ Hot Cheetos not only as a product but as a movement and as a loyal executive for PepsiCo,” Montañez said. “PepsiCo believed in me as a leader because they knew people would follow me, and they did because they knew my soul is my community. We built this into a $2 billion industry, and I cannot let them take away my legacy or destroy my reputation. I will not let them silence me.”

“This complaint speaks for itself, and we are looking forward to presenting the merits of this case to a jury,” said Eric George, partner at Ellis George LLP.

Pepsi says…

It has no comment on the lawsuit. Period. But the company has had plenty to say about Montañez in the past.

“None of our records show that Richard was involved in any capacity in the Flamin’ Hot test market,” Frito-Lay (the wholly-owned PepsiCo subsidiary which makes Cheetos) wrote in a 2021 statement to The LA Times, in response to questions about an internal investigation whose existence has not been previously disclosed. “We have interviewed multiple personnel who were involved in the test market, and all of them indicate that Richard was not involved in any capacity in the test market.

“That doesn’t mean we don’t celebrate Richard,” the statement continued, “but the facts do not support the urban legend.”

That sounds like a tap-dance around the central issue of Montañez’s claim. He may not have been directly involved with the actual development of the product. But he says he came up with the idea. And when you’re talking about something as simple as dusting cheese puffs with chili powder, that’s a claim that all by itself would convince some he did, indeed, invent it. Nevertheless…

Back story…

Montañez’s story has been characterized by many retellers as a ‘rags to riches’ tale. He stared off working at as a janitor at Frito-Lay’s Rancho Cucamonga, CA, plant when he got he idea for the chili-covered Cheeto.

An Associated Press story relates: “One day, a machine in Montañez’s plant broke down, leaving a batch of unflavored Cheetos. Montañez says he took the batch home and dusted them with chili powder, trying to replicate the flavor of elote, the popular grilled, seasoned street corn served [everywhere]  in Mexico.”

He claims he pitched it to his superiors, but they gave him the cold shoulder. But he felt it was a good enough idea to get in touch with the CEO of Pepsico directly, and try it out on him.

According to a 2021 LA Times story, “Corporate backstabbers tried to sabotage Montañez for stepping out of line, but he out-hustled them, driven by a hunger to succeed. Flamin’ Hots became a runaway hit, and Montañez rose through the ranks and became an icon.” He was, in fact, fast-tracked as high in the organization as the post of Vice President of Multicultural Marketing and Sales at parent company PepsiCo.

He’s since written a book on his corporate odyssey, and seen a movie made based on it. In fact, he’s become a high-profile inspirational speaker, “appearing at events for Target, Walmart, Harvard and USC, among others, and commanding fees of $10,000 to $50,000 per appearance.”

My take

Sounds to me as though, maybe the Frito Lay folks did listen to Montañez’s idea when he first mentioned it to them – and quietly ran with it, without giving him credit. That would explain why they stonewalled him when he tried to send the suggestion ‘up the line’ by conventional channels before they were ready to pitch it to the boss. But that might just be my overactive imagination. I love a good corporate conspiracy movie!

Montañez is already legendary – both as an innovator and a successful son of the Latino community. But his lawsuit – however it pans out – will only make him more iconic in both realms. And I see, out of the hazy mists of the future, the outlines of another movie already starting to coalesce…

~ Maggie J.