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Pepsi-Cola is a soft drink commonly called Pepsi, which is produced and manufactured by PepsiCo. It is sold worldwide in stores, restaurants and from vending machines. The drink was first made in the 1890s, by pharmacist Caleb Bradham. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years, including Diet Pepsi, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Jazz and Pepsi Next (available in Japan and South Korea).

History

Pepsi-Cola was first made in New Bern, North Carolina in the United States in the early 1890s by pharmacist Caleb Bradham. In 1898, "Brad's drink" was changed to "Pepsi-Cola" and later trademarked on June 16, 1903.[1] There are several theories on the origin of the word "pepsi".

The only two discussed within the current PepsiCo website are the following:

  1. Caleb Badham bought the name "Pep Kola" from a local competitor and changed it to Pepsi-Cola.
  2. "Pepsi-Cola" is an anagram for "Episcopal" - a large church across the street from Bradham's drugstore. There is a plaque at the site of the original drugstore documenting this, though PepsiCo has denied this theory.

Another theory is that Caleb Badham and his customers simply thought the name sounded good or the fact that the drink had some kind of "pep" in it because it was a carbonated drink, they gave it the name "Pepsi".

As Pepsi was initially intended to cure stomach pains, many believe Bradham coined the name Pepsi from either the condition dyspepsia (stomach ache or indigestion) or the possible one-time use of pepsin root as an ingredient (often used to treat upset stomachs).[citation needed] It was made of carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the original recipe included the enzyme pepsin is disputed.[2][3]

In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore into 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 1905, Pepsi received its first logo redesign since the original design of 1924. In 1926, the logo was changed again. In 1929, automobile race pioneer Barney Oldfield endorsed Pepsi-Cola in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race".

In 1929, the Pepsi-Cola Company went bankrupt - in large part due 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.[4] 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 manfuacturer 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.

During The Great Depression, Pepsi gained popularity following the introduction in 1934 of a 12-ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to 5 cents, sales went through the roof. With twelve ounces a bottle instead of the six ounces Coca-Cola sold, Pepsi turned the price difference to its advantage with a slick 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,", encouraging price-watching consumers to switch to Pepsi, while obliquely referring to the Coca-Cola standard of six ounces a bottle for the price of five cents (a nickel), instead of the twelve ounces Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's status. From 1936 to 1938, Pepsi Cola's profits doubled.[5]

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 then ensued, with Guth losing. Loft now owned Pepsi, and the two companies did a merger, then immediately spun the Loft company off. Walter Mack was named the new President of Pepsi-Cola and guided the company through the 1940s.

Postwar inflation meant an end to the "Twice as much for a nickel" pricing and marketing strategy. Some bottlers switched to 10 or even 8 ounce bottles at the nickel price. Others kept the 12 ounce bottles but at a higher price and still others switched to 6 ounce bottles for seven cents.

By the early 1950s, Pepsi's upper management changed again under new President Alfred Steele, who completely changed direction with the marketing of the product to alter the "econo-brand" image of Pepsi. Pepsi's formula was also slightly changed, this time removing some of the sugar content. This was tied into their new image of Pepsi as "The Light Refreshment" and was followed by attempts to market Pepsi as a more affluent beverage. This was the "Be Sociable" campaign and wasn't particularly successful. Pepsi's next strong marketing success didn't occur until they targeted the youth market. First with the "Think Young" campaign in 1961, then more famously with their "Pepsi Generation" advertising two years later.

By the early 1960s, competitor Royal Crown Company was having strong success with their Diet Rite Cola. At that time, The Pepsi-Cola company had branched out into producing other flavors, under their Patio line, and in response to the success of Diet Rite, they added Patio Diet Cola. Success with Patio Diet Cola encouraged them to instead market it as Diet Pepsi in 1964. This

1964 was the also the year that Pepsi purchased the Mountain Dew brand from the southeast region Tip Corporation.

In 1965, the Pepsi-Cola Company merged with Frito-Lay, forming PepsiCo.

[edit] Marketing

Pepsi soda in a cup with icecubes.
Pepsi soda in a cup with icecubes.

In 1975, PepsiCo 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 test results to the public.[6] Some attribute this to the higher sugar content found in Pepsi compared to Coca-Cola, as seen in the book, "Big Secrets" by William Poundstone.[citation needed]

A large advertisement made to resemble a Pepsi cup.
A large advertisement made to resemble a Pepsi cup.

In Early 2007, They released most PepsiCo Sodas in 12oz Bottles, that come in 12 packs.

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." Source: Promo Magazine, 2002.

The first of many new designs of Pepsi cans were released in 2007.
The first of many new designs of Pepsi cans were released in 2007.

In 2007, PepsiCo announced that Pepsi's cans would be redesigned again. [1]

[edit] Celebrity endorsers

Main article: Pepsi spokespersons

Unlike Coca-Cola, Pepsi and its associated beverages have had various celebrity endorsers and continue to use them. Joan Crawford married Al Steele who was director of the company, she filled Al's place on the board of directors after he died.

[edit] Slogans

  • 1939: "Twice as Much for a Nickel"
  • 1950: "More Bounce to the Ounce"
  • 1958: "Be Sociable, Have a Pepsi"
  • 1961: "Now It's Pepsi for Those Who Think Young"
  • 1963: "Come Alive, You're in the Pepsi Generation".
  • 1967: "(Taste that beats the others cold) Pepsi Pours It On".
  • 1969: "You've Got a Lot to Live, Pepsi's Got a Lot to Give".
  • 1973: "Join the Pepsi people (feeling free)".
  • 1975: "Have a Pepsi day".
  • 1979: "Catch that Pepsi spirit". David Lucas composer
  • 1981: "Pepsi's got your taste for life".
  • 1983: "Pepsi's Now!"
  • 1984: "The Choice of a New Generation".
  • 1991: "Gotta Have It."
  • 1995: "Nothing Else is a Pepsi".
  • 1997: "GeneratioNext".
  • 1999: "Ask for More"/"The Joy of Pepsi-Cola".
  • 2003: "It's the Cola"/"Dare for More".
  • 2007: "More Happy".

[edit] Types of Pepsi

See also: List of Pepsi types
Crystal Pepsi was one of the unpopular Pepsi variations.
Crystal Pepsi was one of the unpopular Pepsi variations.

There are many types of Pepsi-Cola all differing in taste, price and appearance. Diet Pepsi is one of the most popular variations of the drink, containing no sugar and zero calories. Other popular low calorie variations of the drink include Pepsi Max, Pepsi ONE, Caffeine-Free Pepsi and Caffeine-Free Diet Pepsi.

PepsiCo has marketed many different fruit flavors of the drink including: Wild Cherry Pepsi (1988), Diet Wild Cherry Pepsi (2005), Pepsi Lime (2005) and Diet Pepsi Lime (2005) and Pepsi Jazz diet cola with two flavors, Strawberries & Cream (2006) and Black Cherry French Vanilla (2006). PepsiCo also rivaled Coca-Cola's lemon-flavored products with Pepsi Twist. Pepsi Twist has been successfully marketed in Brazil (with lime instead of lemon), where a limited-edition version is also sold, the Pepsi Twistão, with an even stronger lime flavor. Pepsi A-ha, with a lemon flavor, was launched in India in 2002 but was not successful. Another type, Pepsi Samba, was released in Australia in the 3rd Quarter of 2005; it is Pepsi with a tropical taste of tamarind and mango.

PepsiCo has introduced many variant versions of Pepsi over the years that differ from the original version in either flavor, appearance or both. Crystal Pepsi, a clear cola free of caffeine, sodium and preservatives, was introduced in 1992 and phased out the following year. Similarly, the blue-colored berry cola Pepsi Blue was introduced in mid-2002 to a mixed response. PepsiCo withdrew it from the market in 2004. In 2006, Pepsi Gold was released.

PepsiCo has introduced coffee-flavored variations of the drink. In 2005, Pepsi Cappuccino was released in Romania and Bulgaria with another coffee-flavored cola called Pepsi Tarik in Malaysia and Pepsi Cafechino in India. In late 2005/early 2006 in the UK PepsiCo released Pepsi Max Cino, a cappuccino variant of its popular Pepsi Max beverage.

Many types of the drink have only been produced or sold for a limited time, such as Pepsi Holiday Spice, a spicy Christmas seasonal finish of ginger and cinnamon. Pepsi X is another variation which contains more caffeine than regular Pepsi-Cola and in addition also contains taurine and guaranine. It is similar to other energy drinks such as Red Bull.

PepsiCo markets Pepsi ONE in the US in place of Pepsi X (sold only outside the US and not currently available for import), as both are sweetened with SPLENDA® No Calorie Sweetener, and Pepsi ONE contains 4.6mg of caffeine per ounce without the added taurine and guaranine (Pepsi X has 2.5mg of caffeine and regular Pepsi has 3.13mg per ounce).

[edit] Criticisms

Main article: PepsiCo Criticisms

In 2003 and again in 2006,[7] the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, found that soda drinks produced by manufacturers in India, including both Pepsi and Coca-Cola, had dangerously high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products.[8] In the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks, has been banned.[9] Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals.[10] On Friday, September 22, 2006, the High Court in Kerala overturned the Kerala ban ruling that only the federal government can ban food products.[11]

Iran state television broadcast anti-Pepsi propaganda, saying that the PEPSI letters stood for Pay Each Penny Save Israel.[2] PepsiCo has a bottling plant in Iran.[3]

[edit] 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.

In 1985, The Coca-Cola Company, amid much publicity, changed its formula. Some authorities believe that New Coke, as the reformulated drink came to be known, was invented specifically in response to the Pepsi Challenge.[citation needed] However, a consumer backlash led to Coca-Cola quickly reintroducing the original formula as Coke "Classic".

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. Saudi Arabia, Pakistan (Pepsi has been a dominant sponsor of the Pakistan cricket team since the 1990s) and the Canadian provinces of Quebec and Prince Edward Island{are three exceptions.[12]

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.[13] 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 60.8%.[14]

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. "Pepsi" eventually became an offensive nickname for Francophones viewed as a lower class by Anglophones in the middle of the 20th century. The term is now used as an historical reference to French-English linguistic animosity (During the partitionist debate surrounding the 1995 referendum, a pundit wrote, "And a wall will be erected along St-Laurent street [the traditional divide between French and English in Montréal] because some people were throwing Coke bottles one way and Pepsi bottles the other way").

In the U.S., Pepsi's total market share was about 31.7 percent in 2004, while Coke's was about 43.1 percent.[15]

In Russia, Pepsi once had a larger market share than Coca-Cola. However, Pepsi's dominance in Russia was undercut as the Cold War ended. PepsiCo had made a deal with the Soviet Union for scale production of Pepsi in 1972.[4] When the Soviet Union fell apart, Pepsi, was associated with the old Soviet system, and Coca Cola, just newly introduced to the Russian market in 1992, was associated with the new system. Thus, Coca-Cola rapidly captured a significant market share away from Pepsi that might otherwise have needed years to build up. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi with 13 percent.[16]

In the same way that Coca Cola has become a cultural icon and its global spread has spawned words like "coca colonization", Pepsi Cola and its relation to Russia has also 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 the relationship and the Soviet policy.[17]

[edit] Ingredients

Amount per 100mL
Energy 196.5 kJ
Fat 0 g
Sodium 0.98 mg
Carbohydrates 11.74 g
Sugar 11.04 g
Protein 0 g
Caffeine 10 mg

The Pepsi-Cola drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid and natural flavors. The caffeine free Pepsi-Cola contains the same ingredients minus the caffeine.