PepsiCo Facts and History

Written by Samuel Phineas Upham

In 1893, Caleb Bradham created a new drink that he sold in his drugstore. He called it “Brad’s Drink,” and it contained two important elements: pepsin, an enzyme for digestion, and kola nuts for flavor. He soon renamed it “Pepsi Cola,” and sought to sell it as a fountain drink.

The formula was enclosed in an unassuming instrument on the table of his pharmacy. He found moderate success, enough to entice him into leaving the pharmacy business behind in favor of bottling soda. In 1903, he relocated his operation to a rented warehouse, where he bottled and sold almost 8,000 gallons of syrup.

He decided to brew his own the next year, selling Pepsi in six-ounce bottles. That upped his sales to over 19,000 gallons for the year. He got his first celebrity endorsement in 1909, when the race car driver Barney Oldfield described the drink as “refreshing and invigorating.” This prompted Bradham to adopt the slogan “Delicious and Healthful” for the next two decades.

But the success nearly came to a halt in 1931, as the US entered the Great Depression. Bradham had speculated on the fluctuating prices of sugar, but he made the wrong investments and lost almost all of his money. Bradham had to sell the assets of his company, including the Pepsi-Cola trademark. Roy C. Mergargel was the first buyer, but he sold it to Charles Guth. Guth was the president of a chain of candy stores and soda fountains. After being shafted by Coca-Cola, he felt the Pepsi brand would be able to give him the competitive advantage. Whether it worked is still up for debate, but Pepsico has managed to survive since then.

Samuel Phineas Upham is an investor from NYC and SF. You may contact Samuel Phineas Upham on his Samuel Phineas Upham website