Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898.

Origins

It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb Bradham, who made it at his pharmacy where the drink was sold. It was later named Pepsi Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious 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 1926, Pepsi received its first logo redesign since the original design of 1905. In the year 1929, the logo was changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy - in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Eight years later, the company went bankrupt again. Pepsi's assets were then 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 Coke refused to give him a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.

Rise

During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to five cents, sales increased substantially. With a radio advertising campaign featuring the jingle "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," arranged in such a way that the jingle never ends. Pepsi encouraged price-watching consumers to switch, obliquely referring to the Coca-Cola standard of six ounces per bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's status. In 1937 500,000,000 bottles of Pepsi were consumed. From 1936 to 1938, Pepsi-Cola's profits doubled.

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.

Niche marketing

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. He realized African Americans 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, 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, they were able to use racism as a selling point, attacking Coke's reluctance to hire blacks and support by the chairman of Coke for segregationist Governor of Georgia Herman Talmadge. As a result, Pepsi's market share as compared to Coke's shot up dramatically. After the sales team visited Chicago, Pepsi's share in the city overtook that of Coke for the first time.

This focus on the market for black people caused some consternation within the company and among its affiliates. They did not want to seem focused on black customers for fear white customers would be pushed away. In a meeting at the Waldorf-Astoria Hotel, 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.

Marketing

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with television commercials reporting the results to the public..

In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female Pepsi salesperson, Denise Muck, to coincide with the United States bicentennial celebration.

In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine promotion marketing."

In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included more than thirty different backgrounds on each can, introducing a new background every three weeks.One of their background designs includes a string of repetitive numbers 73774. This is a numerical expression from a telephone keypad of the word "Pepsi."

In late 2008, Pepsi overhauled their entire brand, simultaneously introducing a new logo and a minimalist label design. The redesign was comparable to Coca-Cola's earlier simplification of their can and bottle designs. Also in 4th quarter of 2008 Pepsi teamed up with Google/Youtube to produce the first daily entertainment show on Youtube, Poptub. This daily show deals with pop culture, internet viral videos, and celebrity gossip. Poptub is updated daily from Pepsi.

Since 2007, Pepsi, Lay's, and Gatorade have had a "Bring Home the Cup," contest for Canada's biggest hockey fans. Hockey fans were asked to submit content (videos, pictures or essays) for a chance at winning a party in their hometown with the Stanley Cup and Mark Messier.

In 2009, "Bring Home the Cup," changed to "Team Up and Bring Home the Cup." The new installment of the campaign asks for team involvement and an advocate to submit content on behalf of their team for the chance to have the Stanley Cup delivered to the team's hometown by Mark Messier.

Pepsi has official sponsorship deals with three of the four major North American professional sports leagues: the National Football League, National Hockey League and Major League Baseball. Pepsi also sponsors Major League Soccer.

Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket team are just 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.

On July 6, 2009, Pepsi announced it would make a $1 billion investment in Russia over three years, bringing the total Pepsi investment in the country to $4 billion.

In July 2009, Pepsi started marketing itself as Pecsi in Argentina in response to its name being mispronounced by 25% of the population and as a way to connect more with all of the population.

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, and Diet Pepsi Max was re-branded as Pepsi Max. 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. Pepsi in countries such as the U.S., Canada, Brazil, Bolivia, Guatemala, Nicaragua, Honduras, El Salvador, Colombia, Argentina, Puerto Rico, Costa Rica, Panama and Australia is carrying the "smile" logo, while the rest of the countries continue to use the old design on all packaging.

Pepsi and Pepsi Max cans and bottles in Australia now carry the localised version of the new Pepsi Logo. The word Pepsi and the logo are in the new style, while the word "Max" is still in the previous style. Pepsi Wild Cherry continues to carry the 2003 Pepsi design on bottles and cans as of November 2009.

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 (which is believed to have more lemon oil, less orange oil, and uses vanillin rather than vanilla) to Coke. 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 introducing a modified version of the original formula (removing the expensive Haitian lime oil and changing the sweetener to corn syrup) as Coke "Classic".

According to Beverage Digest's 2008 report on Carbonated Soft Drinks (CSD), 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 India; Saudi Arabia; Pakistan (Pepsi has been a dominant sponsor of the Pakistan cricket team since the 1990s); 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 Canadian Francophones 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 use the slogan "here, it's Pepsi" (Ici, c'est Pepsi) to answer to Coca-cola publicity "Everywhere in the world, it's Coke" (Partout dans le monde, c'est Coke).

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered The Coca-Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA). 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 2005, The Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India. Coca-Cola India's market share was 52.5%.

In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the Cold War ended.In 1972, Pepsico company 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-Cola.

This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R.

Reminiscent of the way that Coca-Cola became a cultural icon and its global spread spawned words like "coca colonization", 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 a lot of fizz without substance and 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 1989, Billy Joel mentions the rivalry between the two companies in the song "We Didn't Start The Fire". The line "Rock & Roll and Cola Wars" refers to Pepsi and Coke's usage of various musicians in their advertising campaigns. Coke used Paula Abdul, while Pepsi used Michael Jackson. They then continued to try to get other musicians to advertise their beverages.

In 1992, following the Soviet collapse, 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 did not sell soft drinks in Israel until 1992. Many Israelis and some American Jewish organizations attributed Pepsi's previous reluctance to do battle to the Arab boycott. Pepsi, which has a large and lucrative business in the Arab world, denied that. It said economic rather than political reasons kept it out of Israel.

Slogans

• 1939–1950: "Twice as Much for a Nickel"
• 1950: "More Bounce to the Ounce"
• 1950–1957: "Any Weather is Pepsi Weather"
• 1957–1958: "Say Pepsi, Please"
• 1958–1961: "Be Sociable, Have a Pepsi"
• 1961-1963: "Now It's Pepsi for Those Who Think Young" (jingle sung by Joanie Sommers)
• 1963–1967: "Come Alive, You're in the Pepsi Generation" (jingle sung by Joanie Sommers)
• 1967–1969: "(Taste that beats the others cold) Pepsi Pours It On".
• 1969–1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"
• 1975–1977: "Have a Pepsi Day"
• 1977–1980: "Join the Pepsi People (Feeling Free)"
• 1980–1981: "Catch That Pepsi Spirit" [David Lucas, composer]
• 1981–1983: "Pepsi's got your taste for life"
• 1983: "It's cheaper than Coke!"
• 1983–1984: "Pepsi Now! Take the Challenge!"
• 1984–1991: "Pepsi. The Choice of a New Generation" (commercial with Michael Jackson and The Jacksons, featuring Pepsi version of Billie Jean)
• 1986–1987: "We've Got The Taste" (commercial with Tina Turner)
• 1987–1990: "Pepsi's Cool" (commercial with Michael Jackson, featuring Pepsi version of Bad)
• 1990–1991: "You got the right one Baby UH HUH" (sung by Ray Charles for Diet Pepsi)
• 1990–1991: "Yehi hai right choice Baby UH HUH" (Hindi - meaning "This is the right choice Baby UH HUH") (India)
• 1991–1992: "Gotta Have It"/"Chill Out"
• 1992–1993: "Be Young, Have Fun, Drink Pepsi"
• 1993–1994: "Right Now" Van Halen song for the Crystal Pepsi advertisement.
• 1994–1995: "Double Dutch Bus" (Pepsi song sung by Brad Bentz)
• 1995: "Nothing Else is a Pepsi"
• 1995–1996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign
• 1996–1997: "Pepsi:There's nothing official about it" (During the Wills World Cup (cricket) held in India/Pakistan/Sri Lanka)
• 1997–1998: "Generation Next" - with the Spice Girls.
• 1998–1999: "It's the cola" (100th anniversary commercial)
• 1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial with Britney Spears/commercial with Mary J. Blige)
• 1999-2006: "Yeh dil maange more" (Hindi - meaning "This heart asks for more") (India)
• 2003: "It's the Cola"/"Dare for More" (Pepsi Commercial)
• 2005–2006: "An ice cold Pepsi. It's better than sex!" (Larry Sypolt)
• 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young" Commercial featuring Mary J. Blige
• 2007–2008: "More Happy"/"Taste the once that's forever young" (Michael Alexander)
• 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
• 2008: "Рepsi is #1" Тv commercial (Luke Rosin)
• 2008–present: "Something for Everyone."
• 2009–present: "Refresh Everything"/"Every Generation Refreshes The World"
• 2009-present: "Yeh hai youngistaan meri jaan" (Hindi - meaning "This is our young country my baby") (India)
• 2009-present: "My Pepsi My Way"(India)

Pepsiman

Pepsiman is an official Pepsi mascot from Pepsi's Japanese corporate branch. The design of the Pepsiman character is attributed to Canadian comic book artist Travis Charest, 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.

Pepsiman was featured as a Japanese Exclusive Transformers toy "Pepsi Convoy," which was based on G1 Optimus Prime. In 1996, Sega-AM2 released the Sega Saturn version of their 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 Pepsiman, the player runs, 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.

Colas

• Pepsi 'Edge': PepsiCo's New drink (Vanilla flavoured.)

• Pepsi: PepsiCo's signature cola flavor and its namesake cola.
• Diet Pepsi: artificial-sweetener variant
• Pepsi Free: The first major-brand caffeine-free cola introduced in 1982. Currently marketed as Caffeine-Free Pepsi and Caffeine-Free Diet Pepsi.
• Pepsi Max: Low-calorie, sugar-free version of Pepsi.
• Crystal Pepsi: Clear cola; sold from 1992–1993.

*Crystal from Pepsi: Citrus-flavored reformulation of Crystal Pepsi.

*Pepsi Clear: Clear soda released in Mexico as a limited edition during Christmas 2005, the Mexican equivalent of Crystal Pepsi

• Pepsi AM: Increased caffeine; marketed as a morning drink. Sold 1989–1990.
• Pepsi Boom: Caffeine, sugar and artificial sweetener-free. Sold in Germany, Italy and Spain
• Pepsi Fresh: Introduced Summer 2007
• Pepsi Natural (Pepsi Raw in United Kingdom): Containing only "natural ingredients". Released in select markets in U.S. and Mexico in 2009.
• Pepsi Shiso: Introduced only in Japan as a limited edition for Summer 2009, it's transparent green. Size: 147ml can, price:147 yen. Also available in 500ml plastic bottles. Shiso in English is "labiate" or "perilla".
• Pepsi NEX: Zero calories. Distributed by Suntory.
• Pepsi Blue: Blue-colored berry-flavored soda. Available 2002–2004 in the U.S.; remains available in other countries.
• Pepsi Blue Hawaii: Blue-colored, pineapple and lemon flavored. Released in Japan.
• Pepsi Carnival: Tropical fruit-flavored, Introduced in Japan for a limited time Summer 2006. Later released as Pepsi Summer Mix in 2007 in the U.S.
• Pepsi Fire: Limited edition, cinnamon-flavored. Sold in Guam, Saipan, Thailand, Mexico, Malaysia, Singapore and the Philippines.
• Pepsi Gold: Gold-colored, ginger-flavored variant available as part of a 2006 FIFA World Cup and ICC Cricket World Cup 2007 promotion. Sold in Southeast Asia, Central Europe and Russia.
• Pepsi Green: Bright-green variety introduced in Thailand in early 2009.
• Pepsi Holiday Spice: Seasonal, cinnamon-flavored variant available Fall 2004 and 2006 in the U.S. and Canada.
• Christmas Pepsi: Similar to Holiday Spice, with nutmeg and cocoa added to the ingredients list. Available during 2007–2008 holiday seasons.
• Pepsi Ice: Icy mint flavor. Sold in Guam, Thailand, Malaysia, Singapore and the Philippines. In Summer 2007, Pepsi used the name Pepsi Ice in the Czech Republic and Slovakia for a limited edition cola with apple flavor.

• Pepsi Ice Cucumber: Limited edition green, cucumber-flavored Pepsi sold in Japan in Summer 2007.
• Pepsi Jazz: Jazz with Black Cherry and French Vanilla, Jazz with Strawberries and Cream, and Caramel Cream made in 2006.
• Pepsi Kona, Coffee-flavored, test-marketed on the U.S. East Coast.
• Pepsi Kick, Regular formula, with Ginseng. Uses the recent Pepsi logo. Sold only in Mexico.
• Lemon Pepsi: Lemon-flavored, available as a promotion for the beginning of the 2008 NFL season.
• Pepsi Lime: Lime-flavored, introduced in Spring 2005.
• Pepsi Limón: Lime-flavored, released in Mexico in 2002. Re-introduced as Pepsi Twist in 2004, since discontinued.
• Pepsi A-ha: Lemon-flavored, sold in India.
• Pepsi ONE: One-calorie Pepsi. Introduced in 1997.
• Pepsi Raging Razzberry: Raspberry-flavored, available in 1991.
• Pepsi Raw: British name for Pepsi Natural
• Pepsi Red: Spicy, ginger-flavored. Released in Japan in 2006.
• Pepsi Retro: With "natural" ingredients (sugar cane and kola nut extract). Released in Mexico in February 2008, relaunched as Pepsi Natural in August 2009.
• Pepsi Samba: Tropical-flavored (mango and tamarind). Introduced in Australia in 2005.
• Pepsi Si: Marketed in predominantly Hispanic areas.
• Pepsi Strawberry Burst
• Pepsi Summer Chill: Apple-flavored, sold in Poland during Summer 2007. Marketed as Pepsi Ice in the Czech Republic and Slovakia.
• Pepsi Summer Mix: Pepsi with tropical fruit flavors. Available in 2007 in limited areas.
• Pepsi Throwback: Sweetened with sugar instead of high-fructose corn syrup and in retro-styled packaging.
• Pepsi Tropical Chill
• Pepsi Tropical: Tropical-flavored, available in the U.S., U.K. and Japan in late 1994.
• Pepsi Twist: Lemon-flavored
• Pepsi Twist Mojito: Mojito and lemon-flavored. Non-alcoholic. Sold in Italy.
• Pepsi Twistão: Strong lemon flavor, sold during summertime in Brazil. "Twistão", in Portuguese, is the augmentative of "Twist".
• Pepsi Vanilla: Vanilla-flavored, released in Canada and the U.S. in 2003 in response to Vanilla Coke. Marketed as Pepsi Ice Cream in Russia.
• Pepsi White: Yogurt-flavored, available in Japan .
• Pepsi Wild Cherry: Cherry-flavored, introduced in 1988 as "Wild Cherry Pepsi". Changed name and formula in 2005. Still uses the 2003 Pepsi design as of September 2009.
• Pepsi X Energy Cola: Guarana and a higher amount of caffeine. Reddish color. Available in several countries.
• Pepsi 100: Available in 1998 for the anniversary of the drink and in 2003 for the anniversary of the name "Pepsi".
• Pepsi Kick: It's the twin brother of Pepsi X Energy Cola, this drink contains higher amount of caffeine plus Ginseng. Available since 2009, this Pepsi Kick was launched to Latinamerica in an ignaural event in Guatemala.

Ingredients

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 sugar), 30 mg of sodium, 0 grams of fat, 0 grams of protein, 38 mg of caffeine and 150 calories. The caffeine-free Pepsi-Cola contains the same ingredients but without the caffeine.

The original Pepsi-Cola recipe was available from documents filed with the court at the time that the Pepsi-Cola Company went bankrupt in 1929. The original formula contained neither cola nor caffeine.

Competitors

• Coca-Cola
• R.C. Cola

See also