Pepsi

Pepsi
Current Pepsi logo (December 2008-).
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
Dr Pepper
7 Up
Irn Bru
Cola Turka
Big Cola
Website http://pepsi.com/

Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. The drink was first made in the 1890s by pharmacist Caleb Davis Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1898.

Contents

Origins

The pharmacy of Caleb Bradham, with a Pepsi dispenser, as portrayed in a New Bern exhibition in the Historical Museum of Bern.

It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb Bradham, who made it at his pharmacy where the drink was sold. It was later named Pepsi Cola, possibly due to the digestive enzyme pepsin and kola nuts used in the recipe.[1] Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy.[2]

In 1903, Bradham moved the bottling of Pepsi-Cola 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-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race".[3] The advertising theme "Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy - in large part due to 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 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.[5]

Pepsi-Cola trademark

The original stylized Pepsi-Cola logo
The second stylized Pepsi-Cola logo

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 USPTO. 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 February 15, 1896." While Pepsi-Cola was filed in the same category of personal and legal and social services in both applications, 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.

Rise

During 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. 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. Pepsi encouraged price-watching consumers to switch, obliquely referring to the Coca-Cola standard of six ounces per bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at the same price.[6] Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's status. From 1936 to 1938, Pepsi-Cola's profits doubled.[7]

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.

Niche marketing

1940s advertisement specifically targeting African Americans

Nickolas Dias was named the new President of Pepsi-Cola and guided the company through the 1940s. Mack, who supported progressive causes, noticed that the company's strategy 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 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.

Boyd also led a sales team composed entirely of blacks around the country to promote Pepsi. 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 Pepsi co-workers to threats by the Ku Klux Klan.[10] On the other hand, they were able to use racism as a selling point, attacking Coke's reluctance to hire blacks and support by the chairman of Coke for segregationist Governor of Georgia Herman Talmadge.[8] As a result, Pepsi's market share as compared to Coke's shot up dramatically. After the sales team visited Chicago, Pepsi's share in the city overtook that of Coke for the first time.[8]

This focus on the market for black people caused some consternation within the company and among its affiliates. They did not want to seem focused on black customers for fear white customers would be pushed away.[8] In a meeting at the Waldorf-Astoria Hotel, Mack tried to assuage the 500 bottlers in attendance by pandering to them, saying, "We don't want it to become known as a nigger drink."[11] After Mack left the company in 1950, support for the black sales team faded and it was cut.

Marketing

Pepsi logo (1973-87). In 1987, the font was modified slightly to a more rounded version which was used until 1991. This logo was used for Pepsi Throwback in 2010.
Pepsi logo (2003-2008). Pepsi Wild Cherry and Pepsi ONE continued to use this design through March 2010. It was outside of the U.S. until 2010.
Photo of a Pepsi can.
Pepsi bottle in Mexico. This logo was still in use in Mexico and most countries through early 2010. This Pepsi logo was last used in Canada in May 2009.

From the 1930s through the late '50s, "Pepsi-Cola Hits The Spot" was the most commonly used slogan in the days of old radio, classic motion pictures, and later television. Its jingle (conceived in the days when Pepsi cost only five cents) was used in many different forms with different lyrics.

With the rise of television, Pepsi utilized the services of a young, up-and-coming actress named Polly Bergen to promote products, often times lending her singing talents to the classic "...Hits The Spot" jingle. Some of these Bergen spots can be seen on ClassicTVAds.com.

Through the intervening decades, there have been many different Pepsi theme songs sung on television by a variety of artists, from Joanie Summers to The Jacksons to Britney Spears. Scroll down to Slogans for a list of the campaigns Pepsi has used over the past century.

In 1975, Pepsi 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 results to the public.[12]

In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female Pepsi salesperson, Denise Muck, to coincide with the United States bicentennial celebration.

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."[13]

In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included more than thirty different backgrounds on each can, introducing a new background every three weeks.[14] One of their background designs includes a string of repetitive numbers 73774. This is a numerical expression from a telephone keypad of the word "Pepsi."

In late 2008, Pepsi overhauled their entire brand, simultaneously introducing a new logo and a minimalist label design. The redesign was comparable to Coca-Cola's earlier simplification of their can and bottle designs. Also in 4th quarter of 2008 Pepsi teamed up with Google/YouTube to produce the first daily entertainment show on Youtube, Poptub. This daily show deals with pop culture, internet viral videos, and celebrity gossip. Poptub is updated daily from Pepsi.

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.

Pepsi has official sponsorship deals with three of the four major North American professional sports leagues: the National Football League, National Hockey League and Major League Baseball. Pepsi also sponsors Major League Soccer.

Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket team is just one of the teams that the brand sponsors. The team wears the Pepsi logo on the front of their test and ODI test match clothing.

On July 6, 2009, Pepsi announced it would make a $1 billion investment in Russia over three years, bringing the total Pepsi investment in the country to $4 billion.[15]

In July 2009, Pepsi started marketing itself as Pecsi in Argentina in response to its name being mispronounced by 25% of the population and as a way to connect more with all of the population.[16]

In October 2008, Pepsi announced that it would be redesigning its logo and re-branding many of its products by early 2009. 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. 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 switched to Pepsi's current logo). As of Present, The UK has started 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 localised 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.

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. This became known as the "Cola Wars".

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 introducing a modified version of the original formula (removing the expensive Haitian lime oil and changing the sweetener to corn syrup) as Coke "Classic".

According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market share is 30.8 percent, while The Coca-Cola Company's is 42.7 percent.[17] Coca-Cola outsells Pepsi in most parts of the U.S., notable exceptions being central Appalachia, North Dakota, and Utah. In the city of Buffalo, New York, Pepsi outsells Coca-Cola by a two-to-one margin.[18]

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]

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.[20] PepsiCo use the slogan "here, it's Pepsi" (Ici, c'est Pepsi) to answer to Coca-cola publicity "Everywhere in the world, it's Coke" (Partout dans le monde, c'est Coke).

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.[21] 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 52.5%.[22]

In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the Cold War ended. In 1972, Pepsico company struck a barter agreement with the then government of the Soviet Union, in which Pepsico was granted exportation and Western marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola.[23] [24] This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R.[25]

Reminiscent of the way that Coca-Cola became a cultural icon and its global spread spawned words like "coca colonization", Pepsi-Cola and its relation to the Soviet system 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 that relationship and the Soviet policy.[26] This was reflected in Russian author Victor Pelevin's book "Generation P".

In 1989, Billy Joel mentions the rivalry between the two companies in the song "We Didn't Start The Fire". The line "Rock & Roll and Cola Wars" refers to Pepsi and Coke's usage of various musicians in their advertising campaigns. Coke used Paula Abdul, while Pepsi used Michael Jackson. They then continued to try to get other musicians to advertise their beverages.

In 1992, following the Soviet collapse, Coca-Cola was introduced to the Russian market. As it came to be associated with the new system, and Pepsi to the old, Coca-Cola rapidly captured a significant market share that might otherwise have required years to achieve. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi with 13 percent.[27]

Pepsi did not sell soft drinks in Israel until 1992. Many Israelis and some American Jewish organizations attributed Pepsi's previous reluctance to do battle to the Arab boycott. Pepsi, which has a large and lucrative business in the Arab world, denied that. It said economic rather than political reasons kept it out of Israel.[28]

Slogans

Old Pepsi can (late '80s).
Old logo still in use in Pepsi Cans made in Pakistan.
A large advertisement made to resemble a Pepsi cup at Nickelodeon Universe in the Mall of America.

Pepsiman

Pepsiman is an official Pepsi mascot from Pepsi's Japanese corporate branch. The design of the Pepsiman character is attributed to Canadian comic book artist Travis Charest, created sometime around the mid 1990s. Pepsiman took on three different outfits, each one representing the current style of the Pepsi can in distribution. Twelve commercials were created featuring the character. His role in the advertisements is to appear with Pepsi to thirsty people or people craving soda. Pepsiman happens to appear at just the right time with the product. After delivering the beverage, sometimes Pepsiman would encounter a difficult and action oriented situation which would result in injury.

In 1996, Sega-AM2 released the Sega Saturn version of their arcade fighting game Fighting Vipers. In this game Pepsiman was included as a special character, with his specialty listed as being the ability to "quench one's thirst". He does not appear in any other version or sequel. In 1999, KID developed a video game for the PlayStation entitled Pepsiman. As Pepsiman, the player runs, skateboards, rolls, and stumbles through various areas, avoiding dangers and collecting cans of Pepsi all while trying to reach a thirsty person as in the commercials.

Variants

Ingredients

Pepsi is made with carbonated water, high fructose corn syrup, caramel color, sugar, Phosphoric acid, caffeine, citric acid and natural flavors. A can of Pepsi (12 fl ounces) has 41 grams of carbohydrates (all from sugar), 30 mg of sodium, 0 grams of fat, 0 grams of protein, 38 mg of caffeine and 150 calories.[29][30] The caffeine-free Pepsi-Cola contains the same ingredients but without the caffeine.

The original Pepsi-Cola recipe was available from documents filed with the court at the time that the Pepsi-Cola Company went bankrupt in 1929. The original formula contained neither cola nor caffeine.

See also

References

  1. ↑ Soda Museum - The History of Pepsi Cola
  2. ↑ The History of the Birthplace of Pepsi-Cola
  3. ↑ "Pepsi - FAQs". PepsiCo. http://www.pepsiusa.com/faqs.php?section=highlights. Retrieved 12 October 2009. "1909: Automobile racing pioneer Barney Oldfield becomes the first celebrity to endorse Pepsi when he appears in newspaper ads describing Pepsi: "A bully drink…refreshing, invigorating, a fine bracer before a race." The theme "Delicious and Healthful" appears and will be used intermittently over the next two decades." 
  4. ↑ "The History of Pepsi-Cola", sodamuseum.bigstep.com paragraph 8
  5. ↑ Mark Pendergrast (2000). For God, Country and Coca-Cola. Basic Books. pp. 192–193. ISBN 0-465-05468-4. 
  6. ↑ 1939 Radio Commercial (Twice as Much for a Nickel)
  7. ↑ Jones, Eleanor & Ritzmann, Florian. "Coca-Cola at Home". Retrieved June 17, 2006
  8. ↑ 8.0 8.1 8.2 8.3 Martin, Douglas (May 6, 2007). "Edward F. Boyd Dies at 92; Marketed Pepsi to Blacks.". The New York Times. http://www.nytimes.com/2007/05/06/business/06boyd.html?_r=1&ref=obituaries&oref=slogin. Retrieved 2007-05-05. 
  9. ↑ 9.0 9.1 Archer, Michelle (January 22, 2007). "Pepsi's challenge in 1940s: Color barrier". USA Today. 
  10. ↑ 10.0 10.1 Stewart, Jocelyn Y (May 5, 2007). "Edward Boyd, 92; Pepsi ad man broke color barriers". Los Angeles Times. http://www.latimes.com/news/obituaries/la-me-boyd5may05,0,7240282,full.story?coll=la-news-obituaries. Retrieved 2007-05-05. 
  11. ↑ Tavis, Smiley (February 27, 2007). "Edward Boyd" (interview). PBS. http://www.pbs.org/kcet/tavissmiley/archive/200702/20070227_boyd.html. Retrieved 2007-05-04. 
  12. ↑ SODAmuseum.com "The History of Pepsi-Cola", sodamuseum.bigstep.com, paragraph 31
  13. ↑ PepsiCo - Company - Honors (2002), Promo Magazine, 2002.
  14. ↑ Pepsi Can Gallery
  15. ↑ Business2Press.com "Pepsi Announces $1B Russian Investment"
  16. ↑ Vescovi, Valentina (July 15, 2009). "In Argentina, Pepsi Becomes 'Pecsi'". AdAge.com. http://adage.com/globalnews/article?article_id=137946. 
  17. ↑ "Special Issue: Top-10 CSD Results for 2008", Beverage Digest, March 30, 2009 (PDF)
  18. ↑ [1]
  19. ↑ Vive la difference , Strategy Magazine, October 2004
  20. ↑ "The Pepsi 'Meunier' Campaign" (PDF). Canadian Advertising Success Stories (Cassies) Case Library. http://www.cassies.ca/caselibrary/winners/PepsiMeunier.pdf. Retrieved 2007-08-21. 
  21. ↑ "India: Soft Drinks, Hard Cases", The Water Dossier, March 14, 2005
  22. ↑ "Fizzical Facts: Coke claims 60% mkt share in India", Times News Network, August 5, 2005
  23. ↑ Robert Laing (2006-03-28). "Pepsi's comeback, Part II". Mail & Guardian online. http://www.mg.co.za/articlePage.aspx?articleid=267835&area=/insight/insight__economy__business/. Retrieved 2007-07-21. 
  24. ↑ Free-Essays.us - Coke Vs. Pepsi
  25. ↑ "PepsiCo Company History (1972)". PepsiCo, Inc. http://www.pepsico.com/PEP_Company/History/index.cfm#. Retrieved 2007-07-21. 
  26. ↑ The word first appeared in an exhibit in the Harvard University Law School Library in December 1990 to February 1991, then in several articles and books by anthropologist David Lempert, who coined the phrase. Most notable is the third book inside the two volume set, "Pepsi-stroika" in Daily Life in a Crumbling Empire: The Absorption of Russia into the World Economy, Columbia University Press/ Eastern European Monographs, 1996.
  27. ↑ "Coke Versus Pepsi, Santa Versus Moroz", The Moscow Times, December 30, 2005
  28. ↑ Israel braces for new conflict: The soda war; Chicago Tribune, May 19, 1992
  29. ↑ http://www.thedailyplate.com/nutrition-calories/food/pepsi/12-oz-can The Daily Plate, Pepsi nutrition info
  30. ↑ http://www.pepsiproductfacts.com/infobyproduct.php Pepsi Product Facts

Further reading

External links

Varieties of Pepsi
Colas
Pepsi · Crystal Pepsi · Pepsi Blue · Pepsi Free · Pepsi Twist · Pepsi Raw (Pepsi Natural)
Diet colas
Diet Pepsi · Jazz Diet Pepsi · Pepsi Max (outside North America) · Pepsi Max (North America only) · Pepsi ONE
Coffee-related colas
Pepsi Kaffe · Pepsi Kona
Cola
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