What is the story behind Pepsi?

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 relieve dyspepsia^[4][3][5] (indigestion) and "Cola" referring to the cola flavor.^[5] Some have also suggested that "Pepsi" may have been a reference to the drink aiding digestion like the digestive enzyme pepsin,^[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 pioneer Barney Oldfield was 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 of World 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 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.^[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]