The original formula for what would become Pepsi Cola was invented in 1893 by pharmacist Caleb Bradham of New Bern, N.C. Like many pharmacists at the time, he operated a soda fountain in his drugstore, where he served drinks that he created himself.
By the summer of 1903, he had trademarked the name and was selling his soda syrup to pharmacies and other vendors throughout North Carolina. By the end of 1910, franchisers were selling Pepsi in 24 states.
At first, Pepsi had been marketed as a digestive aid, appealing to consumers with the slogan, "Exhilarating, Invigorating, Aids Digestion." But as the brand flourished, the company switched tactics and decided instead to use the power of celebrity to sell Pepsi. In 1913, Pepsi hired Barney Oldfield, a famous racecar driver of the era, as a spokesma...
After years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the fluctuations of sugar prices during World War I, believing that sugar prices would continue to rise — but they fell instead, leaving Caleb Bradham with an overpriced sugar inventory. Pepsi Cola went bankrupt in 1923.
In 1931, after passing through the hands of several investors, Pepsi Cola was bought by the Loft Candy Co. Charles G. Guth, Loft's president, struggled to make a success of Pepsi during the depths of the Great Depression. At one point, Loft even offered to sell Pepsi to executives at Coke, who refused to offer a bid.