A federal judge has dismissed a lawsuit brought by Richard Montañez, a former PepsiCo executive who claimed the company defrauded and defamed him by denying his role in inventing Flamin’ Hot Cheetos.
In a ruling issued Wednesday, U.S. District Judge John Holcomb concluded that Montañez, who retired in 2019 to pursue a career as a motivational speaker, failed to prove that PepsiCo and its Frito-Lay division had deliberately reneged on a promise to acknowledge his contribution to the creation of the popular spicy snack.
The Santa Ana-based judge also rejected Montañez’s defamation claim, which centered on PepsiCo’s alleged refusal in 2023 to support a documentary about his life unless it discredited his version of events. Holcomb ruled that the “actual malice” standard applied, citing Montañez’s high public profile, including two bestselling memoirs and the 2023 film Flamin’ Hot, directed by Eva Longoria.
Montañez began working at Frito-Lay as a janitor in 1976 and eventually rose to vice president of multicultural marketing. He maintains that in 1989 he created the concept for Flamin’ Hot Cheetos by experimenting with chili powder and seasonings inspired by elote, a popular Mexican street food.
He said he sparked what became Flamin’ Hot Cheetos around 1989, when took unflavored Cheetos home to experiment with seasonings and “drew inspiration” from elote, a Mexican grilled corn seasoned with chili powder.
The snack was officially launched in 1992 and became a multibillion-dollar brand. Montañez said he once commanded up to 35 paid speaking engagements annually, but his bookings plummeted after a 2021 Los Angeles Times article quoted Frito-Lay disputing the origin story as an “urban legend.” The company later clarified that its comments were misinterpreted and acknowledged Montañez’s role in product development.
Montañez’s attorneys have not responded to requests for comment. PepsiCo’s attorney, Camille Vasquez, also declined to comment.
The case is Martinez v. PepsiCo Inc. et al., U.S. District Court, Central District of California, No. 24-01792.
Pump Radar
Stock Alerts