Pepsi
A cola brand born from a drugstore, rivaling Coca-Cola globally.
Pepsi is a cola-flavored carbonated soft drink and the main product of PepsiCo. As of 2023, it ranked as the second most valuable soft drink brand globally, trailing only Coca-Cola; the two companies have a long-running competitive history often referred to as the "cola wars."
The drink was first created in 1893 by Caleb Bradham, who called it "Brad's Drink" and sold it at his drugstore in New Bern, North Carolina. In 1898, it was renamed "Pepsi-Cola" because of its claimed digestive benefits, and the name was shortened to "Pepsi" in marketing as early as 1951. The company faced early financial troubles, going bankrupt in 1923, but was bought and revived by Charles Guth, who had the syrup formula reworked. Pepsi became more popular during the Great Depression after introducing a 12-ounce bottle and using marketing tactics like the "Nickel, Nickel" jingle, which doubled sales by emphasizing the drink's value.
In the mid-20th century, Pepsi began targeting African American consumers, a demographic largely ignored by competitors at the time, using positive imagery and endorsements from well-known figures to increase its market share. The rivalry with Coca-Cola, highlighted by the "cola wars," led to intense cultural and market competition, including the "Pepsi Challenge" taste tests and Coca-Cola's introduction of New Coke in response. Pepsi expanded into international markets with mixed results, including a notable barter deal with the Soviet Union in 1972 (though it was not the first American consumer product sold there, as earlier products had preceded it) and lasting popularity in some regions over Coca-Cola.
Despite occasional controversies—such as a canceled Madonna advertisement and the "Pepsi Number Fever" incident in the Philippines—Pepsi has remained a major global brand, aided by creative marketing campaigns and sponsorships in sports and entertainment. PepsiCo has also launched other drinks under the Pepsi name, including Diet Pepsi and Pepsi Max, which, along with the original cola, make up the brand's current portfolio.
- field
- Carbonated soft drink
- nationality
- United States
- known_for
- Cola wars with Coca-Cola, innovative marketing, 12-ounce bottle during the Great Depression
- introduced
- 1893 as 'Brad's Drink'
- renamed
- 1898 as 'Pepsi-Cola'
- parent_company
- PepsiCo
Lore & Background
Pepsi was originally created in 1893 by Caleb Bradham and named 'Brad's Drink', first sold in his drugstore in New Bern, North Carolina. It was renamed 'Pepsi-Cola' in 1898 due to its supposed digestive benefits, with its name shortened in marketing to 'Pepsi' as early as 1951. Early on, Pepsi struggled financially, going bankrupt in 1923 but was subsequently purchased and revived by Charles Guth, who reformulated the syrup. Pepsi gained popularity with the introduction of a 12-ounce bottle during the Great Depression and marketing strategies like the 'Nickel, Nickel' jingle, doubling sales by emphasizing its value.
The mid-20th century saw Pepsi targeting the African American market, a then-untapped demographic, with positive portrayals and endorsements from prominent figures, boosting its market share. Pepsi's rivalry with Coca-Cola, highlighted by the 'cola wars', led to significant cultural and market competition, including the 'Pepsi Challenge' taste tests and the introduction of New Coke in response. Pepsi's expansion into international markets has seen varied success, with notable ventures into the Soviet Union via a landmark barter deal (though it was not the first American consumer product sold there, as earlier products had preceded it) and enduring popularity in certain regions.
Reader's Guide
Pepsi's significance lies in its role as a persistent challenger to Coca-Cola, shaping the soft drink industry through aggressive marketing and product innovation. The 'cola wars' drove both companies to adapt, with Pepsi pioneering strategies such as the 12-ounce bottle during the Great Depression, which offered twice the volume for the same nickel, and later targeting the African American market when it was largely ignored. Its international expansion, including a historic barter deal with the Soviet Union, demonstrated its global ambition. Despite controversies like the 'Pepsi Number Fever' fiasco in the Philippines and an aborted Madonna advertisement, Pepsi has remained a prominent global brand, thanks to innovative campaigns and sponsorships in sports and entertainment. The brand's portfolio now includes Diet Pepsi and Pepsi Max, alongside the original cola, reflecting its adaptability in a competitive market.
Did You Know?
- Pepsi was originally created in 1893 by Caleb Bradham and named 'Brad's Drink'.
- Pepsi went bankrupt in 1923 but was revived by Charles Guth, who reformulated the syrup.
- During the Great Depression, Pepsi introduced a 12-ounce bottle for the same nickel as Coca-Cola's 6.5-ounce bottle.
- Pepsi became the first American consumer product produced, marketed, and sold in the Soviet Union in 1974.
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