Pepsiis acarbonatedsoft drinkwith acolaflavor, manufactured byPepsiCo.As of 2023, Pepsi is the second most valuable soft drink brand worldwide behindCoca-Cola;[1]the two share a long-standing rivalry in what has been called the "cola wars".[2]

Pepsi
Logo used since 2023
TypeCola
ManufacturerPepsiCo
Country of originUnited States
Region of originNew Bern, North Carolina
Introduced1893;131 years ago(1893)(asBrad's Drink)
1898;126 years ago(1898)(asPepsi-Cola)
1961;63 years ago(1961)(asPepsi)
ColorCaramel E-150d
VariantsDiet Pepsi
Pepsi Twist
Pepsi Lime
Pepsi Wild Cherry
Crystal Pepsi
Caffeine-Free Pepsi
Pepsi-Cola Made with Real Sugar
Pepsi Vanilla
Pepsi Zero Sugar
Pepsi Max
Nitro Pepsi
Related products
Websitewww.pepsi

Pepsi, originally created in 1893 byCaleb Bradhamand named "Brad's Drink," was first sold in his drugstore inNew Bern, North Carolina.Renamed Pepsi-Cola in 1898 due to its supposed digestive benefits, it was shortened to Pepsi in 1961. The beverage's formula initially includedsugarandvanillabut notpepsin,despite speculation on the origin of its name. Early on, Pepsi struggled with financial stability, going bankrupt in 1923 but was subsequently purchased and revived byCharles Guth,who reformulated the syrup. Pepsi gained popularity with the introduction of a 12-ouncebottleduring theGreat Depressionand clever marketing strategies like the "Nickel, Nickel"jingle, doubling sales by emphasizing its value.

The mid-20th century saw Pepsi targeting theAfrican Americanmarket, a then-untapped demographic, with positive portrayals and endorsements from prominent figures, boosting its market share. Despite occasional controversies, such as an abortedMadonnaadvertisement and the "Pepsi Number Fever"fiasco in the Philippines, Pepsi has remained a prominent global brand, partly thanks to innovative marketing campaigns and sponsorships in sports and entertainment.

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 ofNew Cokein response. Pepsi's expansion into international markets has seen varied success, with notable ventures into theSoviet Unionvia a landmark barter deal and enduring popularity in certain regions over Coca-Cola. As of the early 21st century, Pepsi continues to innovate, both in product variations and marketing strategies, while maintaining a significant presence in the global soft drink industry.

History

The pharmacy of Caleb Bradham, with a Pepsi dispenser
A plaque at 256 Middle Street, New Bern, NC

Pepsi was first invented in 1893 as "Brad's Drink" by Caleb Bradham, who sold the drink at his drugstore in New Bern, North Carolina.[3]

It was renamed Pepsi-Cola in 1898, "Pepsi" because it was advertised to relievedyspepsia[4][3][5](indigestion) and "Cola" referring to thecola flavor.[5]Some have also suggested that "Pepsi" may have been a reference to the drink aiding digestion like the digestive enzymepepsin,[6][5]but pepsin itself was never used as an ingredient to Pepsi-Cola.[3]

The original recipe also included sugar and vanilla.[3]Bradham sought to create a fountain drink that was appealing and would aid in digestion and boost energy.[3]

The original stylized Pepsi-Cola wordmark, used from 1898 until 1905

In 1903, Bradham moved the bottling of Pepsi 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 pioneerBarney Oldfieldwas the first celebrity to endorse Pepsi, 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.[7]

A 1919 newspaper ad for Pepsi-Cola

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 ofWorld War I.Assets were sold and Roy C. Megargel bought the Pepsi trademark.[3]Megargel was unsuccessful in efforts to find funding to revive the brand and soon Pepsi-Cola's assets were purchased byCharles Guth,the president ofLoft, Inc.Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replaceCoca-Colaat his stores' fountains afterThe Coca-Cola Companyrefused to give him additional discounts on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.[8] On three occasions between 1922 and 1933, the Coca-Cola Company was offered the opportunity to purchase the Pepsi-Cola Company, which it declined on each occasion.[9]

Growth in popularity

During theGreat Depression,Pepsi gained popularity following the introduction in 1934 of a 12-ounce (355 mL) bottle. Prior to that, Pepsi and Coca-Cola sold their drinks in 6.5-ounce (192 mL) servings for about $0.05 a bottle.[10]With a radio advertising campaign featuring the popular jingle "Nickel, Nickel" – first recorded by theTune Twistersin 1940 – Pepsi encouraged price-conscious consumers to double the volume their nickels could purchase.[11][12]The jingle is arranged in a way that loops, creating a never-ending tune:

"Pepsi-Cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel, too / Pepsi-Cola is the drink for you."[13]

Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's status. From 1936 to 1938, Pepsi-Cola's profits doubled.[14]

The stylized Pepsi-Cola wordmark used from 1951 to 1971. It was reintroduced in 2014.

Pepsi's success under Charles 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 theDelaware Supreme Courtand ultimately ending in a loss for Guth.

Marketing

ThePepsi logoused from 1971 to 1986. From 1986 to 1991, the wordmark was typeset inHandel Gothic.[15]This logo was used forPepsi Throwbackuntil 2014.
The Pepsi globe and wordmark used from 1997 to 2003
The Pepsi globe and wordmark used from 2014 to 2023
The current Pepsi globe revealed in March 2023; officially launched on August 23 of that year.[16][17]

From the 1930s through the late 1950s, "Pepsi-Cola Hits The Spot"was the most commonly used slogan in the days ofold-time radio,classic motion picturesandearly days of television.[18]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-Cola utilized the services of a young, up-and-coming actress namedPolly Bergento promote products, oftentimes, lending her singing talents to the classic "...Hits The Spot" jingle.

Film actressJoan Crawford,after marrying Pepsi-Cola presidentAlfred N. Steelebecame a spokesperson for Pepsi, appearing in commercials, television specials, and televisedbeauty pageantson 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.[19]

Pepsi has been featured in several films, includingBack to the Future Part II(1989),Home Alone(1990),Wayne's World(1992),Fight Club(1999),World War Z(2013), and in films directed bySpike Lee.[20][21]

Pepsi marketing has also been marred in controversy. In 1989, Pepsi commissioned a $5 million marketing campaign to coincide with the release ofMadonna's song "Like a Prayer",but was cancelled following strong backlash regarding the religious themes in the song's music video.[22]In 1992, thePepsi Number Fevermarketing campaign in thePhilippinesaccidentally distributed 800,000 winning bottle caps for a 1 millionpesogrand prize, leading to riots and the deaths of five people.[23]

In 1996, PepsiCo launched the highly successfulPepsi Stuffmarketing strategy.[24]"Project Blue" was launched in several international markets outside the United States in April.[24]The launch included extravagant publicity stunts, such as a Concorde airplane painted in blue colors (which was owned byAir France) and a banner on theMir space station.The Project Blue design was first tested in the United States in June 1997, and was released that December in preparation for Pepsi's 100th anniversary.[25][26]It was at this point, the logo began to be referred to as the Pepsi Globe.[27]

In October 2008, Pepsi announced that it would redesign its logo and re-brand many of its products by early 2009. In 2009, Pepsi,Diet Pepsi,andPepsi Maxbegan using all lower-case fonts for name brands. The brand'sblue and red globe trademarkbecame a series of "smiles," with the central white band initially arcing at different angles depending on the product.[28]In March 2023, Pepsi unveiled a new logo expected to launch in North America in late-2023, and internationally in 2024. The logo is a modernization of the "vintage" Pepsi logo; accompanying branding elements will also shift from blue to black as their primary color.[29][30]

Niche marketing

Walter Mackwas named the new president of Pepsi-Cola and guided the company through the 1940s. Mack, who supportedprogressivecauses, 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 bywhite-owned manufacturers in the U.S.[31]

Mack realized that Black people were an untappedniche marketand that Pepsi stood to gain market share by targeting its advertising directly towards them.[32]To this end, he hired Hennan Smith, an advertising executive "from theNegronewspaper field "[33]to lead an all-black sales team, which had to be cut due to the onset of World War II.

A 1940s advertisement specifically targeting African Americans, an untapped niche market that was largely ignored by white-owned manufacturers in the U.S. A youngRon Brownis the boy reaching for a bottle.

In 1947, Walter Mack resumed his efforts, hiringEdward F. Boydto 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 youngRon Brown,who grew up to beSecretary of Commerce)[34]reaches up for one. Another ad campaign, titled "Leaders in Their Fields", profiled twenty prominent African Americans such asNobel Peace PrizewinnerRalph Buncheand photographerGordon Parks.

Boyd also led a sales team composed entirely of blacks around the country to promote Pepsi.Racial segregationandJim Crow lawswere still in place throughout much of the U.S.; Boyd's team faced a great deal of discrimination as a result,[33]from insults by Pepsi co-workers to threats by theKu Klux Klan.[34]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 segregationistgovernor of GeorgiaHerman Talmadge.[32]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.[35]After the sales team visitedChicago,Pepsi's share in the city overtook that of Coke for the first time.[32]

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 visitedbottlers,churches, ladies groups, schools, college campuses,YMCAs,community centers, insurance conventions, teacher and doctor conferences, and various civic organizations. They got famous jazzmen such asDuke EllingtonandLionel Hamptonto promote Pepsi from the stage. No group was too small or too large to target for a promotion.[36]

Pepsi advertisements avoided the stereotypical images common in the major media that depictedAunt JemimasandUncle Bens,whose role was to draw a smile from white customers. Instead, it portrayed black customers as self-confidentmiddle-classcitizens who showed very good taste in their soft drinks. They were economical too, as Pepsi bottles were twice the size.[37]

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.[32]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 aniggerdrink. "[38]After Mack left the company in 1950, support for the black sales team faded and it was cut.[31]

Boyd was replaced in 1952 byHarvey C. Russell Jr.,who was notable for his marketing campaigns towards black youth inNew Orleans.These campaigns, held at locales attended largely by black children, would encourage children to collect Pepsi bottle caps, which they could then exchange for rewards. One example is Pepsi's 1954 "Pepsi Day at the Beach" event, where New Orleans children could ride rides at an amusement park in exchange for Pepsi bottle caps. By the end of the event, 125,000 bottle caps been collected. According toThe Pepsi Cola World,the New Orleans campaign was a success; once people's supply of bottle caps ran out, the only way they could get more was to buy more Pepsi.[39]

Rivalry with Coca-Cola

According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market. Pepsi conductedblind taste testsin 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, changedits formula.The theory has been advanced thatNew 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 Joelmentioned 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 usedPaula Abdul,while Pepsi usedMichael Jackson.Both companies then competed to get other musicians to advertise its beverages.

According toBeverage 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.[40]Coca-Cola outsells Pepsi in most parts of the U.S., notable exceptions being centralAppalachia,Montana,North Dakota,andUtah.In the city ofBuffalo, New York,Pepsi outsells Coca-Cola by a two-to-one margin.[41]As of 2024, Pepsi had fallen behindCoca-ColaandDr. Pepperas the third most popular soft drink in the United States, losing its second place spot to the aforementioned Dr. Pepper, a position it had held since 1985.[42]

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However, exceptions include:Oman,India,Saudi Arabia,Pakistan,theDominican Republic,Guatemala,theCanadian provincesofQuebec,Newfoundland and Labrador,Prince Edward Island,Nova ScotiaandNew Brunswick.[43]

Pepsi had long been the drink ofFrench-Canadians,and it continues to hold its dominance by relying on localQuébécoiscelebrities (especiallyClaude Meunier,ofLa Petite Viefame) to sell its product.[44]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, behindSpriteandThums Up.In comparison, Coca-Cola is the fourth most popular carbonated drink, occupying a mere 8.8% of the Indian market share.[45]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 theForeign Exchange Regulation Act(FERA), thus sharing its formula with an entity in which it did not have majority shareholding.[46]

In 1988, PepsiCo gained entry to India by creating a joint venture with thegovernment of Punjab-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'sLiberalizationpolicy.[47]

Pepsi bottles inSoviet periodstyle in supermarket inKyiv, Ukraine

In Russia, Pepsi initially had a larger market share than Coke, but it was undercut onceThe Cold Warended. In 1972, PepsiCo struck a barter agreement with the then government of the Soviet Union, in which PepsiCo was granted exportation andWesternmarketing rights toStolichnayavodka in exchange for importation and Soviet marketing of Pepsi.[48][49]This exchange led to Pepsi being the first foreign product sanctioned for sale in the Soviet Union.[50]

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 underMikhail Gorbachev.[51]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 authorVictor Pelevin's bookGeneration P.

In 1992, following theDissolution of the Soviet Union,Coca-Cola was introduced to theRussian market.As it came to be associated with the new system and Pepsi with 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.[52]

Pepsi was introduced inRomaniain 1966, during the early liberalization policies ofNicolae Ceaușescu,opening up a factory atConstanțain 1967. This was done as a barter agreement similar to the one in the USSR, however,Romanian winewould 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).[53]

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.[54]

Pepsiman

Cosplay of Pepsiman

Pepsiman is an official Pepsi mascot from Pepsi'sJapanesecorporate branch, created sometime around the mid-1990s.[55]Pepsiman took on three different outfits, each one representing the current style of the Pepsi can in distribution.[56]Twelve commercials were created featuring the character. His role in the advertisements is to appear with Pepsi to thirsty people or people craving soda.[57]

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. Pepsiman is mostly silent, and he has no face except for a hole that opens up whenever he delivers a Pepsi.[58]Another more minor mascot, Pepsiwoman, also featured in a few of her own commercials forPepsi Twist;her appearance is basically a female Pepsiman wearing a lemon-shapedbalaclava.[59]

In 1994,Sega-AM2released theSega Saturnversion of its arcade fighting gameFighting Vipers.[60]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,KIDdeveloped avideo gamefor thePlayStationentitledPepsiman.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.[61][62][63]

Despite largely being considered a financial failure, Pepsiman has developed acult followingdue to its over the top and nonsensical premise.[64][65]

Sports sponsorships

Pepsi has official sponsorship deals with theNational Football League,National Hockey League,andNational Basketball Association.[66][67][68]In 2007, and from 2013 to 2022, Pepsi sponsored theNFL'sSuper Bowl halftime shows.[69]It was the sponsor ofMajor League Socceruntil December 2015 andMajor League Baseballuntil April 2017, both leagues signing deals with Coca-Cola.[70][71]From 1999 to 2020, Pepsi also had thenaming rightsto thePepsi Center,an indoor sports and entertainment facility inDenver, Colorado,until the venue's new naming rights were announced on October 22, 2020.[72]

In 1997, after his sponsorship with Coca-Cola ended, retiredNASCAR Cup SeriesdriverJeff Gordonsigned a long-term contract with Pepsi, and he drove 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 theNFL Rookie of the Year awardsince 2002.[73]

Pepsi has the first global sponsorship deals with theUEFA Champions Leagueand theUEFA Women's Champions Leaguestarting in the2015–16season along with the sister brand,Pepsi Maxand became the global sponsor of the competition.[74]

Pepsi also has sponsorship deals ininternational cricketteams.[75]ThePakistani national cricket teamis one of the teams that the brand sponsors.[75]The team wears the Pepsi logo on the front of their test and ODI test match clothing.

TheBuffalo Bisons,anAmerican Hockey Leagueteam, was 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 theBuffalo Sabresof the NHL.

Pepsi also has been a sponsor of theCarolina Hurricanesof theNational Hockey Leaguesince the team moved toNorth Carolinain 1997.

In 2017, Pepsi was the jersey sponsor of thePapua New Guinea national basketball team.

Ingredients

Pepsi
Nutritional value per 12 fl oz (355 ml)
Energy150[76]kcal (630 kJ)
41
Sugars41
Dietary fiber0
0
Saturated0
Trans0
0
Vitamins and minerals
VitaminsQuantity
%DV
Vitamin A equiv.
0%
0 μg
Vitamin C
0%
0 mg
MineralsQuantity
%DV
Calcium
0%
0 mg
Iron
0%
0 mg
Potassium
0%
0 mg
Sodium
1%
15 mg
Other constituentsQuantity
Cholesterol0
Percentages estimated usingUS recommendationsfor adults,[77]except for potassium, which is estimated based on expert recommendation fromthe National Academies.[78]

In the United States, Pepsi is made withcarbonated water,high fructose corn syrup,caramel color,sugar,phosphoric acid,caffeine,citric acid,andnatural flavors.[79]A can of Pepsi (12 fl ounces) has 41 grams ofcarbohydrates(all from sugars), 30 mg ofsodium,0 grams offat,0 grams ofprotein,38 mg of caffeine, and 150calories.[80][81]

Pepsi has 10 more calories and two more grams of sugar and carbohydrates than Coca-Cola.[82]Caffeine-Free Pepsicontains the same ingredients but without the caffeine.

Some regions, such asSwedenand theNetherlandshave recently undergone a reduction of sugar in the standard variety, replacing it with theartificial sweetenersAcesulfame KandSucralose.This change was done by PepsiCoEuropeto slash the amount of sugar in all their drinks by 25% near the end of 2025.[83]This formula change was expanded to theUnited Kingdomversion (distributed byBritvic) in March 2023 (except where served in restaurants and bars).[84]Currently, there are no plans for this formula to be introduced in North America.[29][30]

Variants

Fictional drinks

Pepsi Perfect:A vitamin-enriched Pepsi variation in special bottle shown in the movieBack to the Future Part IIin scenes set in the year 2015. This was later released as a limited-edition drink.[85]Only 6,500 bottles were available for $20.15, they have since been sold for hundreds of dollars oneBay.[86]

See also

References

Notes

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  4. ^Vincent Tompkins; Judith Baughman; James W. Hipp (1994).American Decades: 1900-1909.Gale Research.ISBN978-0-8103-5722-8.Archivedfrom the original on 2023-04-23.Retrieved2020-09-12.Pepsi derives its name from the ailment it was advertised to relieve: dyspepsia.
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