From its humble origins more than 125 years ago in a North Carolina

pharmacy, Pepsi has grown into a product available in multiple

formulations. From its humble origins more than 125 years ago in a North
Carolina pharmacy, Pepsi has grown into a product available in multiple
formulations. 

Humble Origins
The original formula for what would become Pepsi Cola was invented in 1893
by pharmacist Caleb Bradham of New Bern, N.C. Like many pharmacists at
the time, he operated a soda fountain in his drugstore, where he served drinks
that he created himself. His most popular beverage was something he called
"Brad's drink," a mix of sugar, water, caramel, lemon oil, kola nuts, nutmeg,
and other additives.

As the beverage caught on, Bradham decided to give it a snappier name,

eventually settling on Pepsi-Cola. By the summer of 1903, he had trademarked
the name and was selling his soda syrup to pharmacies and other vendors
throughout North Carolina. By the end of 1910, franchisers were selling Pepsi
in 24 states. 

At first, Pepsi had been marketed as a digestive aid, appealing to consumers

with the slogan, "Exhilarating, Invigorating, Aids Digestion." But as the brand
flourished, the company switched tactics and decided instead to use the power
of celebrity to sell Pepsi. In 1913, Pepsi hired Barney Oldfield, a famous
racecar driver of the era, as a spokesman. He became famous for his slogan
"Drink Pepsi-Cola. It Will Satisfy You." The company would continue to use
celebrities to appeal to buyers in the coming decades.

Bankruptcy and Revival

After years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the
fluctuations of sugar prices during World War I, believing that sugar prices
would continue to rise — but they fell instead, leaving Caleb Bradham with an
overpriced sugar inventory. Pepsi Cola went bankrupt in 1923.

In 1931, after passing through the hands of several investors, Pepsi Cola was
bought by the Loft Candy Co. Charles G. Guth, Loft's president, struggled to
make a success of Pepsi during the depths of the Great Depression. At one
point, Loft even offered to sell Pepsi to executives at Coke, who refused to offer
a bid.

Guth reformulated Pepsi and began selling the soda in 12-ounce bottles for
just 5 cents, which was twice as much as what Coke offered in its 6-ounce
bottles. Touting Pepsi as "twice as much for a nickel," Pepsi scored an
unexpected hit as its "Nickel Nickel" radio jingle became the first to be
broadcast coast to coast. Eventually, it would be recorded in 55 languages and
named one of the most effective ads of the 20th century by Advertising Age.

Pepsi Postwar 
Pepsi made sure it had a reliable supply of sugar during World War II, and the
drink became a familiar sight to U.S. troops fighting all across the globe. In the
years after the war, the brand would remain long after American GIs had gone
home. Back in the States, Pepsi embraced the postwar years. Company
president Al Steele married actress Joan Crawford, and she frequently touted
Pepsi during corporate gatherings and visits to local bottlers throughout the
1950s.

By the early 1960s, companies like Pepsi had set their sights on the Baby
Boomers. The first ads appealing to young people called "the Pepsi
Generation" arrived, followed in 1964 by the company's first diet soda, also
targeted at young people. 

The company was changing in different ways. Pepsi acquired the Mountain
Dew brand in 1964 and a year later merged with snack-maker Frito-Lay. The
Pepsi brand was growing up quickly. By the 1970s, this once failing brand was
threatening to displace Coca-Cola as the top soda brand in the U.S. Pepsi even
made international headlines in 1974 when it became the first U.S. product to
be produced and sold within the U.S.S.R.

A New Generation
Throughout the late 1970s and early '80s, "Pepsi Generation" ads continued to
appeal to young drinkers while also targeting older consumers with a series of
"Pepsi Challenge" commercials and in-store tastings. Pepsi broke new ground
in 1984 when it hired Michael Jackson, who was in the midst of his "Thriller"
success, to be its spokesman. The TV commercials, rivaling Jackson's
elaborate music videos, were such a hit that Pepsi would hire a number of
well-known musicians, celebrities, and others throughout the decade,
including Tina Turner, Joe Montana, Michael J. Fox, and Geraldine Ferraro. 

Pepsi's efforts were successful enough that in 1985 Coke announced that it was
changing its signature formula. "New Coke" was such a disaster that the
company had to backtrack and reintroduce its "classic" formula, something
Pepsi frequently took credit for. But in 1992, Pepsi would suffer a product
failure of its own when the spin-off Crystal Pepsi failed to impress Generation
X buyers. It soon was discontinued.
Pepsi Today
Like its rivals, the Pepsi brand has diversified far beyond what Caleb Bradham
could ever have imagined. In addition to the classic Pepsi Cola, consumers can
also find Diet Pepsi, plus varieties without caffeine, without corn syrup,
flavored with cherry or vanilla, even an 1893 brand that celebrates its original
heritage. The company has also branched out into the lucrative sports drink
market with the Gatorade brand, as well as Aquafina bottled water, Amp
energy drinks, and Starbucks coffee beverages.

PepsiCo is also celebrated for its commitment to doing business the right way,
integrating Purpose into our business strategy. In 2019, we adopted a new vision:
to Be the Global Leader in Convenient Foods and Beverages by Winning with
Purpose. Winning with Purpose is the next chapter in our purpose agenda and
conveys our belief that sustainability can be an even greater contributor to our
success in the marketplace.