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Pepsiis a carbonated soft drink with a cola flavor, manufactured by PepsiCo. As of 2023, Pepsi is the second most valuable soft drink brand worldwide behind Coca-Cola;[1] the two share a long-standing rivalry in what has been called the "cola wars".[2]

Pepsi, originally created in 1893 by Caleb Bradham and named "Brad's Drink," was first sold in his drugstore in New Bern, North Carolina. Renamed Pepsi-Cola in 1898 due to its supposed digestive benefits, it was shortened to Pepsi in 1961. The beverage's formula initially included sugar and vanilla but not pepsin, despite speculation on the origin of its name. Early on, Pepsi struggled with financial stability, going bankrupt in 1923 but was subsequently purchased and revived by Charles Guth, who reformulated the syrup. Pepsi gained popularity with the introduction of a 12-ounce bottle during the Great Depression and clever marketing strategies like the "Nickel, Nickel" jingle, doubling sales by emphasizing its value.

The mid-20th century saw Pepsi targeting the African American market, a then-untapped demographic, with positive portrayals and endorsements from prominent figures, boosting its market share. Despite occasional controversies, such as an aborted Madonna advertisement and the "Pepsi Number Fever" fiasco in the Philippines, Pepsi has remained a prominent global brand, partly thanks to innovative marketing campaigns and sponsorships in sports and entertainment.

Pepsi's rivalry with Coca-Cola, highlighted by the "cola wars", led to significant cultural and market competition, including the "Pepsi Challenge" taste tests and the introduction of New Coke in response. Pepsi's expansion into international markets has seen varied success, with notable ventures into the Soviet Union via a landmark barter deal and enduring popularity in certain regions over Coca-Cola. As of the early 21st century, Pepsi continues to innovate, both in product variations and marketing strategies, while maintaining a significant presence in the global soft drink industry.

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]

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]

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.

From the 1930s through the late 1950s, "Pepsi-Cola Hits The Spot" was the most commonly used slogan in the days of old-time radio, classic motion pictures and early days of television.[18] 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 radio, Pepsi-Cola utilized the services of a young, up-and-coming actress named Polly Bergen to promote products, oftentimes, lending her singing talents to the classic "...Hits The Spot" jingle.

Film actress Joan Crawford, after marrying Pepsi-Cola president Alfred N. Steele became a spokesperson for Pepsi, appearing in commercials, television specials, and televised beauty pageants on behalf of the company. Crawford also had images of the soft drink placed prominently in several of her later films. When Steele died in 1959, Crawford was appointed to the Board of Directors of Pepsi-Cola, a position she held until 1973, although she was not a board member of the larger PepsiCo, created in 1965.[19]

Pepsi marketing has also been marred in controversy. In 1989, Pepsi commissioned a $5 million marketing campaign to coincide with the release of Madonna's song "Like a Prayer", but was cancelled following strong backlash regarding the religious themes in the song's music video.[22] In 1992, the Pepsi Number Fever marketing campaign in the Philippines accidentally distributed 800,000 winning bottle caps for a 1 million peso grand prize, leading to riots and the deaths of five people.[23]

In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy.[24] "Project Blue" was launched in several international markets outside the United States in April.[24] The launch included extravagant publicity stunts, such as a Concorde airplane painted in blue colors (which was owned by Air France) and a banner on the Mir space station. The Project Blue design was first tested in the United States in June 1997, and was released that December in preparation for Pepsi's 100th anniversary.[25][26] It was at this point, the logo began to be referred to as the Pepsi Globe.[27]

In October 2008, Pepsi announced that it would redesign its logo and re-brand many of its products by early 2009. In 2009, Pepsi, Diet Pepsi, and Pepsi Max began using all lower-case fonts for name brands. The brand's blue and red globe trademark became a series of "smiles," with the central white band initially arcing at different angles depending on the product.[28] In March 2023, Pepsi unveiled a new logo expected to launch in North America in late-2023, and internationally in 2024. The logo is a modernization of the "vintage" Pepsi logo; accompanying branding elements will also shift from blue to black as their primary color.[29][30]

Walter Mack 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. Up until the 1940s, the full revenue potential of what was called "the Negro market" was largely ignored by white-owned manufacturers in the U.S.[31]

Mack realized that Black people were an untapped niche market and that Pepsi stood to gain market share by targeting its advertising directly towards them.[32] To this end, he hired Hennan Smith, an advertising executive "from the Negro newspaper field"[33] to lead an all-black sales team, which had to be cut due to the onset of World War II.

In 1947, Walter 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)[34] 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,[33] from insults by Pepsi co-workers to threats by the Ku Klux Klan.[34] On the other hand, it was able to use its anti-racism stance as a selling point, attacking Coke's reluctance to hire blacks and support by the chairman of The Coca-Cola Company for segregationist governor of Georgia Herman Talmadge.[32] As a result, Pepsi's market share as compared to Coca-Cola's shot up dramatically in the 1950s with African American soft-drink consumers three times more likely to purchase Pepsi over Coke.[35] After the sales team visited Chicago, Pepsi's share in the city overtook that of Coke for the first time.[32]

Journalist Stephanie Capparell interviewed six men who were on the team in the late 1940s. The team members had a grueling schedule, working seven days a week, morning and night, for weeks on end. They visited bottlers, churches, ladies groups, schools, college campuses, YMCAs, community centers, insurance conventions, teacher and doctor conferences, and various civic organizations. They got famous jazzmen such as Duke Ellington and Lionel Hampton to promote Pepsi from the stage. No group was too small or too large to target for a promotion.[36]

Pepsi advertisements avoided the stereotypical images common in the major media that depicted Aunt Jemimas and Uncle Bens, whose role was to draw a smile from white customers. Instead, it portrayed black customers as self-confident middle-class citizens who showed very good taste in their soft drinks. They were economical too, as Pepsi bottles were twice the size.[37]

This focus on the market for black people caused some consternation within the company and among its affiliates. It did not want to seem focused on black customers for fear white customers would be pushed away.[32] In a national meeting, 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."[38] After Mack left the company in 1950, support for the black sales team faded and it was cut.[31]

Boyd was replaced in 1952 by Harvey C. Russell Jr., who was notable for his marketing campaigns towards black youth in New Orleans. These campaigns, held at locales attended largely by black children, would encourage children to collect Pepsi bottle caps, which they could then exchange for rewards. One example is Pepsi's 1954 "Pepsi Day at the Beach" event, where New Orleans children could ride rides at an amusement park in exchange for Pepsi bottle caps. By the end of the event, 125,000 bottle caps been collected. According to The Pepsi Cola World, the New Orleans campaign was a success; once people's supply of bottle caps ran out, the only way they could get more was to buy more Pepsi.[39]

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