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This page is about the beverage. For its manufacturer, see PepsiCo. For the singer, see Pepsi Demacque.

Not to be confused with PEPPSI.

Pepsi

File:LOGO Here (omitted in usersp draft)
Type	Cola
Manufacturer	PepsiCo.
Country of origin	United States
Introduced	1898 (as Brad's Drink) June 16, 1903 (as Pepsi-Cola) 1961 (as Pepsi)
Related products	Coca-Cola 7 Up Irn Bru Cola Turka Big Cola
Website	pepsi.com

Pepsi (stylized in lowercase as pepsi, formerly stylized in uppercase as PEPSI) is a carbonated soft drink that is produced and manufactured by PepsiCo. Invented in 1883 and introduced as "Brad's Drink," it was renamed as “Pepsi-Cola” on June 16, 1903, and later became known by its current name, “Pepsi.” First launched in the United States, Pepsi is now sold globally and has become PepsiCo’s largest-selling brand. As of 2010, Pepsi is sold in over 150 countries worldwide, resulting in annual retail sales of approximately $21 billion.

History

Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States, in 1898 by Caleb Bradham, who made it at his pharmacy where the drink was sold. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy. It was later named Pepsi-Cola, on account of the digestive enzyme pepsin and kola nuts used in the recipe. In 1902, amid growing sales and popularity of the beverage, Bradham shifted his focus away from his pharmacy business towards expanding the distribution of Pepsi-Cola, beginning with the official formation of the Pepsi-Cola Company in that year. In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse where he produced concentrated syrup to be sold to other soda fountain operators. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottle format as well, allowing for consumption in places outside of soda fountains. Sales increased to 19,848 gallons. In order to further scale the production and distribution of Pepsi-Cola, Bradham licensed production to outside bottlers beginning in 1905, in a franchise model. By 1910, more than 40 franchise bottlers were producing and distributing Pepsi-Cola across 24 of the 50 United States, accounting for annual sales of 100,000 gallons of syrup at that point.

Following the significant growth and expansion of Pepsi sales in the early 1900s, World War I and the Great Depression brought on financial instability in the U.S. economy. In 1923, the Pepsi-Cola Company entered bankruptcy - in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices due to wartime supply shortages. Assets were sold initially to Craven Holdings Corporation, and shortly thereafter a stockbroker and investor from New York, Roy C. Megargel, bought the Pepsi-Cola trademark. Eight years later, at the height of the Great Depression, the company went bankrupt again. Its 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. On three separate occasions between 1922 and 1933, the Coca-Cola Company was offered the opportunity to purchase the Pepsi-Cola company and it declined on each occasion. 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.

During the later years of 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. Walter Mack was named the new president of the Pepsi-Cola Company in 1938, and has been most noted for progressive practices in the advertising of the beverage at this point in time. Under Mack’s leadership, sales of the Pepsi beverage progressed steadily through World War II, despite a similar scenario of sugar price volatility that the company experienced during World War I. Sugar costs were stabilized in part due to Mack’s purchase of a sugar processing plant in Cuba.

Following the end of World War II in 1945, Pepsi began to be distributed to a broader range of countries outside of its initial U.S. market. International expansion at this time included Latin America, the Middle East and the Philippines. Postwar growth of suburban development and the advent of supermarkets in the U.S. brought forth changes in the preferences and lifestyles of Pepsi’s customers. Pepsi was sold in more portable 12-ounce cans for the first time.

Main article: PepsiCo

The Pepsi-Cola Company merged with Frito-Lay in 1965, forming PepsiCo. As of 2011, Pepsi remains the largest PepsiCo brand by measure of sales; however since the 1965 merger, the company has expanded to include a broader variety of foods and beverages, including Gatorade, Aquafina, Naked Juice and Quaker Oats, among others.

Global product variants

Main article: List of Pepsi variations

In its first 60 years of production (1903 - 1963), the brand name "Pepsi-Cola" represented a single product--the original namesake cola now simply known as "Pepsi."

A range of different types of Pepsi have been produced since this time, and there

International expansion in 1970s, 1980s, 1990s, 2000s. different flavors and variations were introduced. Offerings varied based on local cultural taste preferences, etc. Example = Pepsi Max in U.K.

• [1]

Original

The original version of Pepsi is still the #1 selling version in it's primary market of the U.S. It contains _____. The exact ingredients can vary depending upon the country of production--particularly when it comes to the sweetener.

• Throwback introduced

Regional flavor customization

• [2]

• 1993: a new no-sugar cola, Pepsi Max, introduced in Europe and in 1994 distribution spread into the Far East and Latin America. Designed specifically for the taste and ingredient preferences of consumers outside of the U.S.

• Pepsi Baobab: A baobab tree fruit-flavored limited Edition Pepsi released in Japan on May 25, 2010.
• Pepsi Green: a bright-green variety introduced in Thailand on January 15, 2009.

• Arabia [3]

Reduced and Zero calorie

Main article: Diet Pepsi

The first ever variation of the original Pepsi was released in 1964: Diet Pepsi. At the time it was billed as a “low-calorie” soda, as the initial version contained 1 calorie per serving; though Diet Pepsi would later go on to become a “zero-calorie” soda. Still in production as of 2011, Diet Pepsi ranks as ____ in soft drink sales in the U.S. This product is known under a different name, Pepsi Light, in countries including _____.

• Pepsi One

• Pepsi Edge: contained half the carbohydrates, calories and sugars of a normal Pepsi, and is flavored by Splenda. Introduced in 2004, and discontinued in 2005.

Caffeination

• Caffeine Free Pepsi was

When PepsiCo expanded

• Pepsi Max: Was only available outside the United States until the name change of Diet Pepsi Max in 2008. Pepsi with no sugar.

• Mexico, Pepsi Kick includes Ginseng: [4]

Ingredient-specific variations

• Pepsi Throwback: A version of Pepsi-Cola sweetened with sugarinstead of corn syrup.
• Pepsi Natural: "a new cola made with only natural ingredients", released in select markets in 2009.
• Pepsi Retro (rendered in written advertisement as PEPSI retro): Released in Mexico in February 2008. Pepsi made with natural ingredients, sugar cane and cola nut extract.

Flavor mix

The first flavored version of Pepsi was Pepsi Light, a lemon-flavored Diet Pepsi sold in the 1970s and 1980s.

Flavors tend to vary significantly by region. Pepsi Twist is a Brazil product created in 2002, consisting of Pepsi with natural lemon juice flavoring. It was created based on market research which revealed that Brazilians have a tradition of adding a slice of lemon to Ginger Ale. [5]

• Pepsi Wild Cherry: a cherry-flavored variety, introduced in 1988. Available for a brief period in the UK in the late 1980s, and relauched as "Pepsi Max Cherry" in 2011. Originally called "Wild Cherry Pepsi", its name was changed along with the formula in 2005. Now uses the 2008 Pepsi design. [6]

Limited time and seasonal production

• Pepsi Holiday Spice: a limited edition variety which the company began selling November 1, 2004 in the U.S.A. and Canada for an eight-week period. It is flavored with a seasonal finish of cinnamon. [7]

Advertising

Advertising has historically been a significant component of the soft drink industry. Slogans and product endorsements have played a role in the promotion of Pepsi since its early years. 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.

To increase awareness of a price cut in the 1930s from 10 cents to 5 cents, Pepsi initiated a comic strip dubbed “Pepsi and Pete,” in which the main slogan used was “Twice as much for a nickel.” This price cut was also marked 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. It was the first radio advertisement song to be broadcast on network radio across the U.S., and was later recorded in 55 spoken languages. Pepsi encouraged price-conscious consumers to switch, obliquely referring to the Coca-Cola standard of six ounces per bottle for the price of five cents (a nickel), compared to 12 ounce bottles of Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in boosting sales of the beverage. Between 1936 and 1938, Pepsi-Cola's profits doubled.

Pepsi-Cola President (from 1938 – ‘51) Walter Mack, a supporter of progressive causes, noticed that the company's strategy (up to this time) 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.[8] To this end, he hired Hennan Smith, an advertising executive "from the Negro newspaper field"[9] 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 sales 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)[10] 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.

This focus on the market for African American consumers caused some consternation within the company and among its affiliates. Some at the time expressed concerns, believing that Caucasian customers would be pushed away.[8] 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,[9] from insults by co-workers to threats from the Ku Klux Klan.[10] On the other hand, they were able to leverage their progressive practices as a selling point, highlighting Coke's reluctance at the time to expand African American employment.[8] As a result, Pepsi's market share as compared to Coke's increased in multiple metropolitan areas within the U.S. After the sales team visited Chicago, Pepsi's share in the city overtook that of Coke for the first time.[8]

In the 1950s, advertising slogans shifted away from Pepsi’s former message on low-price, instead positioning the beverage with the phrase “More Bounce to the Ounce.”[17] With the emergence in the 1960s of the Baby Boom demographic, Pepsi was repositioned to align with this group, referred to in advertisements as the “Pepsi Generation.” The use of slogans such as “Come Alive! You’re in the Pepsi Generation” sought to align Pepsi, the beverage, with the progressive cultural mindset of this generation.

Main article: Cola Wars

According to Consumer Reports and other mass media outlets, in the 1970s, a stronger rivalry had begun to emerge between Pepsi and its largest competing brand, Coca-Cola. 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 ongoing competition between the two soft drink brands became known as the "Cola Wars".[12] 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 Coke "Classic".[16] In 1989, Billy Joel mentioned the rivalry between the two companies in the song "We Didn't Start The Fire".

• Sports + Music + film/tv actors (80s, 90s, 2000s)

• Beginning in the 1980s and continuing to its current era, the advertising of Pepsi involved both recording artists and professional sports athletes. Among the Including Lionel Richie, Tina Turner, David Bowie, Glen Frey and Gloria Estefan.

• In 1984 Pepsi generation turned 20! And in this decade, Pop music was the star. The new campaign, "The election of a new generation", was also an icon of contemporary culture. Michael Jackson, the biggest celebrity of the moment, part of Pepsi commercials performing his smash hit "Billie Jean". Next to him, great musicians, actors and athletes accompanied Pepsi: Michael J. Fox, Lionel Richie, Tina Turner, David Bowie, among many others. Another big success was the arrival of Pepsi in China. In the mid- 80's, Pepsi and shared in 148 countries.

Professional athletes: Joe Montana and Dan Marino. Michael J. Fox, P http://pepsi.com/PepsiLegacy_Book.pdf

• 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.

• 1996: "Pepsi Stuff" unveiled. Consumers save points for merchandise.
• Filming of the world's first commercial in space. Cosmonauts shoot a large blue Pepsi can in orbit outside the MIR Space station.
• 1997: Pepsi-Cola introduces new advertising campaign with the theme "Generation Next."
• 1999: Pepsi launches "The Joy of Cola" advertising campaign.
• 2001: Pepsi-Cola's flagship brand will have new tagline, "The Joy of Pepsi."
• Pepsi unveils a new tagline: "Pepsi. It's the Cola." It is the brand's first major campaign shift since 1999 and highlights how Pepsi goes with everything from food to fun.
• 2009: Pepsi begins partnership with the NFL

Refresh project

In 2008, the entire Pepsi brand was overhauled, simultaneously introducing a new logo and a minimalist label design. The redesign was compared to Coca-Cola's earlier simplification of its can and bottle designs. A primary component of this redesign was the Pepsi Refresh Project, This packaging redesign coincided with a significant shift in the means of advertising, in the form of the Pepsi Refresh Project. Launched in 2009, the Pepsi Refresh Project[55] is…in which individuals submit and vote on charitable and nonprofit collaborations.[56] The main recipients of grants as part of the refresh project are community organizations with a local focus and nonprofit organizations, such as a high school in Michigan which - as a result of being selected - received $250,000 in 2010 towards construction of a fitness room for high school students.[57] Following the Gulf of Mexico oil spill which occurred in the spring of 2010, PepsiCo donated $1.3 million to grant winners in determined by popular vote.[58] As of October, 2010, the company had provided a cumulative total of $11.7 million in funding, spread across 287 ideas of participant projects from 203 cities in North America.[59] In late 2010, the refresh project was reported to be expanding to include countries outside of North America in 2011.[60]

Packaging and logo

In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again. Multiple variations have followed in the 100+ year history of the Pepsi (formerly Pepsi-Cola) brand.

The promotion of Pepsi during the World War I and II era prompted an early logo change to reflect growing patriotic sentiment in the U.S. during that time. Specifically, the Pepsi packaging at this time was modified to a variation which incorporated red, white and blue colors--marking an expansion from the previously solid-red logo design.[10]

Packaging format changes occurred in the 1970s, with Pepsi becoming available in larger “family size” plastic 2-liter bottles. These variations, combined with the Pepsi Challenge, are attributed to Pepsi-Cola--in 1976--becoming the “largest selling soft drink brand in supermarkets within the U.S.”[13]

• 1993: Pepsi-Cola introduces freshness dating. Pepsi introduces "The Cube," an innovative 24-can multipack, that satisfies growing consumer demand for convenient large size soft drink packaging.

In 2007, the Pepsi 12-ounce can labeling and design was updated for the fourteenth time since its inception. or the first time, included more than thirty different backgrounds on each can, introducing a new design every three weeks.[14] One of these background designs includes a string of repetitive numbers, "73774". This is a numerical expression from a telephone keypad of the word "Pepsi."[21]

In October 2008, PepsiCo announced that it would be redesigning the Pepsi logo and re-branding many of its products. 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 until 2010.[28]

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 has been released in 2010, meaning the old logo has been phased out entirely (most recently, France and Mexico transitioned to the current Pepsi logo). The UK began to use the new Pepsi logo on cans in an order different from the US can. In mid-2010, all Pepsi variants, regular, diet, and Pepsi Max, have started using only the medium-sized “smile” Pepsi Globe. Pepsi and Pepsi Max cans and bottles in Australia now carry the localized 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 finally received the 2008 Pepsi design in March 2010.[29]

Trademark

The original trademark application for Pepsi-Cola was filed on September 23, 1902 with registration approved on June 16, 1903. In the application's statement, Caleb Bradham describes the trademark as an, "arbitrary hyphenated word "PEPSI-COLA," and indicated that the mark was in continuous use for his business since August 1, 1901. The Pepsi-Cola's description is a flavoring-syrup for soda water. The trademark expired on April 15, 1994.

A second Pepsi-Cola trademark is on record with the United States Patent and Trademark Office. The application date submitted by Caleb Bradham for the second trademark is Saturday, April 15, 1905 with the successful registration date of April 15, 1906, over three years after the original date. Curiously, in this application, Caleb Bradham states that the trademark had been continuously used in his business "and those from whom title is derived since in the 1905 application the description submitted to the USPTO was for a tonic beverage. The federal status for the 1905 trademark is registered and renewed and is owned by Pepsico, Inc. of Purchase, New York.

Competition

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.[19]

See also

• Pepsi spokespersons
• Pepsi Max Big One (Roller coaster)
• Pepsi Orange Streak (Roller coaster)
• Pepsi Python (Roller coaster)
• Pepsi Billion Dollar Sweepstakes
• Mountain Dew
• AMP Energy

Further reading

• Beverage World Magazine, January 1998, "Celebrating a Century of Refreshment: Pepsi — The First 100 Years"
• Stoddard, Bob. Pepsi-Cola - 100 Years (1997), General Publishing Group, Los Angeles, CA, USA
• "History & Milestones" (1996), Pepsi packet
• Louis, J.C. & Yazijian, Harvey Z. "The Cola Wars" (1980), Everest House, Publishers, New York, NY, USA

External links

• Pepsi website (U.S.)
• Pepsi World (directory of official country- and region-specific Pepsi websites)
• Pepsi page on PepsiCo UK & Ireland