Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961.
|Country of origin||United States|
|Introduced||1893 (as Brad's Drink)|
1898 (as Pepsi-Cola)
1961 (as Pepsi)
Pepsi Wild Cherry
Pepsi-Cola Made with Real Sugar
Pepsi Zero Sugar
Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was renamed Pepsi-Cola in 1898 after the Greek word for "digestion" (πέψη, pronounced the same as Pepsi), which the drink was purported to aid, and "cola" after the kola nut. The original recipe also included sugar and vanilla. Bradham sought to create a fountain drink that was appealing and would aid in digestion and boost energy.
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race." The advertising theme "Delicious and Healthful" was then used over the next two decades.
In 1923, the Pepsi-Cola Company entered bankruptcy—in large part due to financial losses incurred by speculating on the wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Megargel was unsuccessful in efforts to find funding to revive the brand and soon Pepsi's assets were purchased by Charles Guth, the President of Loft, Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace Coca-Cola at his stores' fountains after The Coca-Cola Company refused to give him additional discounts on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.
Growth in popularity
During the Great Depression, Pepsi-Cola gained popularity following the introduction in 1934 of a 12-ounce bottle. Prior to that, Pepsi and Coca-Cola sold their drinks in 6.5-ounce servings for about $0.05 a bottle. With a radio advertising campaign featuring the popular jingle "Nickel, Nickel" – first recorded by the Tune Twisters in 1940 – Pepsi encouraged price-conscious consumers to double the volume their nickels could purchase. The jingle is arranged in a way that loops, creating a never-ending tune:
Pepsi's success under Guth came while the Loft Candy business was faltering. Since he had initially used Loft's finances and facilities to establish the new Pepsi success, the near-bankrupt Loft Company sued Guth for possession of the Pepsi-Cola company. A long legal battle, Guth v. Loft, then ensued, with the case reaching the Delaware Supreme Court and ultimately ending in a loss for Guth.
From the 1930s through the late 1950s, "Pepsi-Cola Hits The Spot" was the most commonly used slogan in the days of old radio, classic motion pictures, and later television. Its jingle (conceived in the days when Pepsi cost only five cents) was used in many different forms with different lyrics. With the rise of radio, Pepsi utilized the services of a young, up-and-coming actress named Polly Bergen to promote products, oftentimes lending her singing talents to the classic "...Hits The Spot" jingle.
Film actress Joan Crawford, after marrying Pepsi-Cola President Alfred N. Steele became a spokesperson for Pepsi, appearing in commercials, television specials, and televised beauty pageants on behalf of the company. Crawford also had images of the soft drink placed prominently in several of her later films. When Steele died in 1959, Crawford was appointed to the Board of Directors of Pepsi-Cola, a position she held until 1973, although she was not a board member of the larger PepsiCo, created in 1965.
In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. "Project Blue" was launched in several international markets outside the United States in April. The launch included extravagant publicity stunts, such as a Concorde aeroplane painted in blue colors (which was owned by Air France) and a banner on the Mir space station.
The Project Blue design arrived in the United States test marketed in June 1997, and finally released in 1998 worldwide to celebrate Pepsi's 100th anniversary. It was at this point the logo began to be referred to as the Pepsi Globe.
In October 2008, Pepsi announced that it would be redesigning its logo and re-branding many of its products by early 2009. In 2009, Pepsi, Diet Pepsi, and Pepsi Max began using all lower-case fonts for name brands. The brand's blue and red globe trademark became a series of "smiles", with the central white band arcing at different angles depending on the product until 2010. Pepsi released this logo in U.S. in late 2008, and later it was released in 2009 in Canada (the first country outside of the United States for Pepsi's new logo), Brazil, Bolivia, Guatemala, Nicaragua, Honduras, El Salvador, Colombia, Argentina, Puerto Rico, Costa Rica, Panama, Chile, Dominican Republic, the Philippines, and Australia. In the rest of the world, the new logo was released in 2010. The old logo is still used in several international markets, and has been phased out most recently in France and Mexico.
Walter Mack was named the new President of Pepsi-Cola and guided the company through the 1940s. Mack, who supported progressive causes, noticed that the company's strategy of using advertising for a general audience either ignored African Americans or used ethnic stereotypes in portraying blacks. Up until the 1940s, the full revenue potential of what was called "the Negro market" was largely ignored by white-owned manufacturers in the U.S. Mack realized that blacks were an untapped niche market and that Pepsi stood to gain market share by targeting its advertising directly towards them. To this end, he hired Hennan Smith, an advertising executive "from the Negro newspaper field" to lead an all-black sales team, which had to be cut due to the onset of World War II.
In 1947, Walter Mack resumed his efforts, hiring Edward F. Boyd to lead a twelve-man team. They came up with advertising portraying black Americans in a positive light, such as one with a smiling mother holding a six pack of Pepsi while her son (a young Ron Brown, who grew up to be Secretary of Commerce) reaches up for one. Another ad campaign, titled "Leaders in Their Fields", profiled twenty prominent African Americans such as Nobel Peace Prize winner Ralph Bunche and photographer Gordon Parks.
Boyd also led a sales team composed entirely of blacks around the country to promote Pepsi. Racial segregation and Jim Crow laws were still in place throughout much of the U.S.; Boyd's team faced a great deal of discrimination as a result, from insults by Pepsi co-workers to threats by the Ku Klux Klan. On the other hand, it was able to use its anti-racism stance as a selling point, attacking Coke's reluctance to hire blacks and support by the chairman of The Coca-Cola Company for segregationist Governor of Georgia Herman Talmadge. As a result, Pepsi's market share as compared to Coca-Cola's shot up dramatically in the 1950s with African American soft-drink consumers three times more likely to purchase Pepsi over Coke. After the sales team visited Chicago, Pepsi's share in the city overtook that of Coke for the first time.
Journalist Stephanie Capparell interviewed six men who were on the team in the late 1940s. The team members had a grueling schedule, working seven days a week, morning and night, for weeks on end. They visited bottlers, churches, ladies groups, schools, college campuses, YMCAs, community centers, insurance conventions, teacher and doctor conferences, and various civic organizations. They got famous jazzmen such as Duke Ellington and Lionel Hampton to promote Pepsi from the stage. No group was too small or too large to target for a promotion.
Pepsi advertisements avoided the stereotypical images common in the major media that depicted Aunt Jemimas and Uncle Bens, whose role was to draw a smile from white customers. Instead, it portrayed black customers as self-confident middle-class citizens who showed very good taste in their soft drinks. They were economical too, as Pepsi bottles were twice the size.
This focus on the market for black people caused some consternation within the company and among its affiliates. It did not want to seem focused on black customers for fear white customers would be pushed away. In a national meeting, Mack tried to assuage the 500 bottlers in attendance by pandering to them, saying "We don't want it to become known as a nigger drink." After Mack left the company in 1950, support for the black sales team faded and it was cut.
Rivalry with Coca-Cola
According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market. Pepsi conducted blind taste tests in stores, in what was called the "Pepsi Challenge". These tests suggested that more consumers preferred the taste of Pepsi to Coca-Cola. The sales of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation. This became known as the "Cola Wars".
In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The theory has been advanced that New Coke, as the reformulated drink came to be known, was invented specifically in response to the Pepsi Challenge. However, a consumer backlash led to Coca-Cola quickly reintroducing the original formula as "Coca-Cola Classic".
In 1989, Billy Joel mentioned the rivalry between the two companies in the song "We Didn't Start the Fire". The line "Rock & Roller Cola Wars" refers to Pepsi and Coke's usage of various musicians in advertising campaigns. Coke used Paula Abdul, while Pepsi used Michael Jackson. Both companies then competed to get other musicians to advertise its beverages.
According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market share is 30.8 percent, while The Coca-Cola Company's is 42.7 percent. Coca-Cola outsells Pepsi in most parts of the U.S., notable exceptions being central Appalachia, North Dakota, and Utah. In the city of Buffalo, New York, Pepsi outsells Coca-Cola by a two-to-one margin.
Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However, exceptions include: Oman, India, Saudi Arabia, Pakistan, the Dominican Republic, Guatemala, the Canadian provinces of Quebec, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, and Northern Ontario.
Pepsi had long been the drink of French-Canadians, and it continues to hold its dominance by relying on local Québécois celebrities (especially Claude Meunier, of La Petite Vie fame) to sell its product. PepsiCo introduced the Quebec slogan "here, it's Pepsi" (Ici, c'est Pepsi) in response to Coca-Cola ads proclaiming "Around the world, it's Coke" (Partout dans le monde, c'est Coke).
As of 2012, Pepsi is the third most popular carbonated drink in India, with a 15% market share, behind Sprite and Thums Up. In comparison, Coca-Cola is the fourth most popular carbonated drink, occupying a mere 8.8% of the Indian market share. By most accounts, Coca-Cola was India's leading soft drink until 1977, when it left India because of the new foreign exchange laws which mandated majority shareholding in companies to be held by Indian shareholders. The Coca-Cola Company was unwilling to dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA), thus sharing its formula with an entity in which it did not have majority shareholding. In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company returned in pursuance of India's Liberalization policy.
In Russia, Pepsi initially had a larger market share than Coke, but it was undercut once the Cold War ended. In 1972, PepsiCo struck a barter agreement with the then government of the Soviet Union, in which PepsiCo was granted exportation and Western marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi. This exchange led to Pepsi being the first foreign product sanctioned for sale in the Soviet Union.
Reminiscent of the way that Coca-Cola became a cultural icon and its global spread spawned words like "cocacolonization", Pepsi-Cola and its relation to the Soviet system turned it into an icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a pun on "perestroika", the reform policy of the Soviet Union under Mikhail Gorbachev. Critics viewed the policy as an attempt to usher in Western products in deals there with the old elites. Pepsi, as one of the first American products in the Soviet Union, became a symbol of that relationship and the Soviet policy. This was reflected in Russian author Victor Pelevin's book "Generation P".
In 1992, following the dissolution of the Soviet Union, Coca-Cola was introduced to the Russian market. As it came to be associated with the new system and Pepsi to the old, Coca-Cola rapidly captured a significant market share that might otherwise have required years to achieve. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi with 13 percent.
Pepsi was introduced in Romania in 1966, during the early liberalization policies of Nicolae Ceaușescu, opening up a factory at Constanța in 1967. This was done as a barter agreement similar to the one in the USSR, however, Romanian wine would be sold in the United States instead. The product quickly became popular, especially among young people, but due to the austerity measures imposed in the 1980s, the product became scarce and rare to find. Starting from 1991, PepsiCo entered the new Romanian market economy, and still maintains a bigger popularity than its competitor, Coca-Cola, introduced in Romania in 1992, despite heavy competition during the 1990s (sometime between 2000 and 2005, Pepsi overtook Coca-Cola in sales in Romania).
Pepsi did not sell soft drinks in Israel until 1991. Many Israelis and some American Jewish organizations attributed Pepsi's previous reluctance to expand operations in Israel to fears of an Arab boycott. Pepsi, which has a large and lucrative business in the Arab world, denied that, saying that economic, rather than political, reasons kept it out of Israel.
Pepsiman is an official Pepsi mascot from Pepsi's Japanese corporate branch, created sometime around the mid-1990s. Pepsiman took on three different outfits, each one representing the current style of the Pepsi can in distribution. Twelve commercials were created featuring the character. His role in the advertisements is to appear with Pepsi to thirsty people or people craving soda. Pepsiman happens to appear at just the right time with the product. After delivering the beverage, sometimes Pepsiman would encounter a difficult and action-oriented situation which would result in injury. Another more minor mascot, Pepsiwoman, also featured in a few of her own commercials for Pepsi Twist; her appearance is basically a female Pepsiman wearing a lemon-shaped balaclava.
In 1996, Sega-AM2 released the Sega Saturn version of its arcade fighting game Fighting Vipers. In this game Pepsiman was included as a special character, with his specialty listed as being the ability to "quench one's thirst". He does not appear in any other version or sequel. In 1999, KID developed a video game for the PlayStation entitled Pepsiman. As the titular character, the player runs "on rails" (forced motion on a scrolling linear path), skateboards, rolls, and stumbles through various areas, avoiding dangers and collecting cans of Pepsi, all while trying to reach a thirsty person as in the commercials.
Pepsi has official sponsorship deals with the National Football League, National Hockey League, and National Basketball Association. It was the sponsor of Major League Soccer until December 2015 and Major League Baseball until April 2017, both leagues signing deals with Coca-Cola. Pepsi also has the naming rights to the Pepsi Center, an indoor sports facility in Denver, Colorado. In 1997, after his sponsorship with Coca-Cola ended, retired NASCAR Sprint Cup Series driver turned Fox NASCAR announcer Jeff Gordon signed a long-term contract with Pepsi, and he drives with the Pepsi logos on his car with various paint schemes for about 2 races each year, usually a darker paint scheme during nighttime races. Pepsi has remained as one of his sponsors ever since. Pepsi has also sponsored the NFL Rookie of the Year award since 2002.
Pepsi also has sponsorship deals in international cricket teams. The Pakistani national cricket team is one of the teams that the brand sponsors. The team wears the Pepsi logo on the front of their test and ODI test match clothing.
The Buffalo Bisons, an American Hockey League team, were sponsored by Pepsi-Cola in its later years; the team adopted the beverage's red, white, and blue color scheme along with a modification of the Pepsi logo (with the word "Buffalo" in place of the Pepsi-Cola wordmark). The Bisons ceased operations in 1970, making way for the Buffalo Sabres.
In the United States, Pepsi is made with carbonated water, high fructose corn syrup, caramel color, sugar, phosphoric acid, caffeine, citric acid, and natural flavors. A can of Pepsi (12 fl ounces) has 41 grams of carbohydrates (all from sugars), 30 mg of sodium, 0 grams of fat, 0 grams of protein, 38 mg of caffeine, and 150 calories. Pepsi has 10 more calories and 2 more grams of sugar and carbohydrates than Coca-Cola. Caffeine-Free Pepsi contains the same ingredients but without the caffeine.
- Pepsi Perfect: A vitamin-enriched Pepsi variation shown in the movie Back to the Future Part II in scenes set in the year 2015. This was later released as a limited-edition drink.
- Pepsi Nex: Pepsi variation shown in the 2011 Japanese anime series, Tiger & Bunny. Pepsi then released a Pepsi Nex variant in Japan in 2012 for promotional purposes.
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1909: Automobile racing pioneer Barney Oldfield becomes the first celebrity to endorse Pepsi when he appears in newspaper ads describing Pepsi: "A bully drink...refreshing, invigorating, a fine bracer before a race." The theme "Delicious and Healthful" appears and will be used intermittently over the next two decades.
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