Top 100 Interbrand In The World – Rank no.22 – Pepsi – US
Current Pepsi’s 2-D logo introduced in October 2008.
|Country of origin||United States|
|Introduced||1893 (as Brad’s Drink)
August 28, 1898 (as Pepsi-Cola)
1961 (as Pepsi)
Pepsi (stylized in lowercase as pepsi, formerly stylized in uppercase as PEPSI) is a carbonated soft drink that is produced and manufactured by PepsiCo. Created and developed in 1893 and introduced as Brad’s Drink, it was renamed as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961.
Pepsi was first introduced as “Brad’s Drink" in New Bern, North Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy.
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." 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. Megargel was unsuccessful, and soon Pepsi’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 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.
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, 1904.
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 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. ofPurchase, New York.
During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. 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 6.5 ounces per bottle for the price of five cents (a nickel), instead of the 12 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.
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 theDelaware Supreme Court and ultimately ending in a loss for Guth.
1940s advertisement specifically targeting African Americans, A young Ron Brown is the boy reaching for a bottle
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. He realized African Americans were an untapped niche market and that Pepsi stood to gainmarket share by targeting its advertising directly towards them. To this end, he hiredHennan Smith, an advertising executive “from the Negro newspaper field" 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) 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, from insults by Pepsi co-workers to threats by the Ku Klux Klan. On the other hand, it was able to use racismas a selling point, attacking Coke’s reluctance to hire blacks and support by the chairman of Coke for segregationist Governor of Georgia Herman Talmadge. 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.
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 whitecustomers would be pushed away. 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." After Mack left the company in 1950, support for the black sales team faded and it was cut.
Pepsi logo (2003–2008). Pepsi Wild Cherry continued to use this design through March 2010. Pepsi ONE continued to use this design until mid-2012. This logo is still in use in India and other international markets. The original version had the Pepsi wording on the top left of the Pepsi Globe. In 2007, the Pepsi wording was moved to the bottom of the globe.
From the 1930s through the late 1950s, “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 radio, Pepsi 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 then Pepsi-Cola President Alfred N. Steelebecame 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.
The Buffalo Bisons, an American Hockey League team, were sponsored by Pepsi-Cola in its later years; the team adopted the beverage’s red, white and blue color scheme along with a modification of the Pepsi logo (with the word “Buffalo" in place of the Pepsi-Cola wordmark). The Bisons ceased operations in 1970 (making way for the Buffalo Sabres).
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.
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".
In 2007, PepsiCo redesigned its 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. One of its 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 its entire brand, simultaneously introducing a new logo and aminimalist label design. The redesign was comparable to Coca-Cola’s earlier simplification of its can and bottle designs. Pepsi also teamed up with YouTube to produce its first daily entertainment show called Poptub. This show deals with pop culture, internet viral videos, and celebrity gossip.
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. It also has the naming rights to the Pepsi Center, an indoor sports facility in Denver, Colorado. In 1997, after his sponsorship with Coca-Cola ended, NASCAR driver Jeff Gordon signed a long term contract with Pepsi, and he drives with the Pepsi logos on his car with various paint schemes for about 2 races each year, usually a darker paint scheme during nighttime races. Pepsi has remained as one of his sponsors ever since. Pepsi has also sponsored the NFL Rookie of the Year award since 2002.
Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket team is 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.
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. The old logo is still used in several markets internationally, and has been phased out most recently in Franceand Mexico. The UK started to use the new Pepsi logo on cans in an order different from the US can. Starting 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 localized 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.
In 2011, for New York Fashion Week, Diet Pepsi introduced a “skinny" can that is taller and has been described as a “sassier" version of the traditional can that Pepsi says was made in “celebration of beautiful, confident women". The company’s equating of “skinny" and “beautiful" and “confident" is drawing criticism from brand critics, consumers who do not back the “skinny is better" ethos, and the National Eating Disorders Association, which said that it takes offense to the can and the company’s “thoughtless and irresponsible" comments. PepsiCo Inc. is a Fashion Week sponsor. This new can was made available to consumers nationwide in March.
In April 2011, Pepsi announced that customers will be able to buy a complete stranger a soda at a new “social" vending machine, and even record a video that the stranger would see when they pick up the gift.
In March 2013, Pepsi for the first time in 17 years reshaped its 20-ounce bottle.
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, and 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 reintroducing the original formula 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. 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.
Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However, exceptions include Oman; India; Saudi Arabia;Pakistan (Pepsi has been a dominant sponsor of the Pakistan cricket team since the 1990s); the Dominican Republic; Guatemala; theCanadian provinces of Quebec, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island; and Northern Ontario.
Pepsi had long been the drink of Canadian Francophones and it continues to hold its dominance by relying on local Québécoiscelebrities (especially Claude Meunier, of La Petite Vie fame) to sell its product. PepsiCo introduced the Quebec slogan “here, it’s Pepsi" (Ici, c’est Pepsi) in response to Coca-Cola ads proclaiming “Around the world, it’s Coke" (Partout dans le monde, c’est Coke).
As of 2012, Pepsi is the third most popular carbonated drink in India with a 15% market share, behind Sprite and Thums Up. In comparison, Coca Cola is the fourth most popular carbonated drink occupying a mere 8.8% of the Indian market share. 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.
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. This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R.
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 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. This was reflected in Russian author Victor Pelevin’s book “Generation P“.
In 1989, Billy Joel mentioned the rivalry between the two companies in the song “We Didn’t Start The Fire“. The line “Rock & Roller Cola Wars" refers to Pepsi and Coke’s usage of various musicians in advertising campaigns. Coke used Paula Abdul, while Pepsi usedMichael Jackson. Both companies then competed to get other musicians to advertise its beverages.
In 1992, following the dissolution of the Soviet Union, 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.
Pepsi did not sell soft drinks in Israel until 1991. 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, saying that economic, rather than political, reasons kept it out of Israel.
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. Another more minor mascot, Pepsiwoman, also featured in a few of her own commercials for Pepsi Twist ; her appearance is basically a female Pepsiman wearing a lemon-shaped balaclava.
In 1996, Sega-AM2 released the Sega Saturn version of its 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 the titular character, the player runs “on rails" (forced motion on a scrolling linear path), 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.  
- 1939–1950: “Twice as Much for a Nickel"
- 1950: “More Bounce to the Ounce"
- 1950–1957: “Any Weather is Pepsi Weather"
- 1957–1958: “Say Pepsi, Please"
- 1959-1960: “The Sociables Prefer Pepsi"
- 1961–1964: “Now It’s Pepsi for Those Who Think Young" (jingle sung by Joanie Sommers)
- 1964–1967: “Come Alive, You’re in the Pepsi Generation" (jingle sung by Joanie Sommers)
- 1967–1969: “(Taste that beats the others cold) Pepsi Pours It On".
- 1969–1975: “You’ve Got a Lot to Live, and Pepsi’s Got a Lot to Give"
- 1977–1980: “Join the Pepsi People (Feeling Free)"
- 1980–1981: “Catch That Pepsi Spirit" (David Lucas, composer)
- 1981–1983: “Pepsi’s got your taste for life"
- 1983–1984: “Pepsi Now! Take the Challenge!"
- 1984–1988 and 1990-1991: “Pepsi. The Choice of a New Generation"
- 1989: “Pepsi. A Generation Ahead"
- 1991–1992: “Gotta Have It"/"Chill Out"
- 1992:"The Choice Is Yours"
- 1992–1993: “Be Young, Have Fun, Drink Pepsi"
- 1993–1994: “Right Now" (Van Halen song for the Crystal Pepsi advertisement)
- 1994–1995: “Double Dutch Bus" (Pepsi song sung by Brad Bentz)
- 1995: “Nothing Else is a Pepsi"
- 1995–1996: “Drink Pepsi. Get Stuff." (Pepsi Stuff campaign)
- 1996:"Change The Script"
- 1997–1998: “Generation Next" (with the Spice Girls)
- 1998–1999: “Its the cola" (100th anniversary commercial)
- 1999: “Ask for More" (commercial and promotional single with Janet Jackson)
- 1999–2000: “For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial with Britney Spears/commercial with Mary J. Blige)
- 2003: “Its the Cola"/"Dare for More" (Pepsi Commercial)
- 2006–2007: “Why You Doggin’ Me"/"Taste the one that’s forever young" (Mary J. Blige)
- 2007–2008: “More Happy"/"Taste the once that’s forever young" (Michael Alexander)
- 2008: “Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
- 2008: “Pepsi is #1″ Тv commercial (Luke Rosin)
- 2008–present: “Something For Everyone"
- 2009–present: “Refresh Everything"/"Every Generation Refreshes the World"
- 2010–present: “Every Pepsi Refreshes The World"
- 2011–present “Summer Time is Pepsi Time"
- 2011–present “Born in the Carolinas"
- 2012: “Where there’s Pepsi, there’s music" – used for the 2012 Super Bowl commercial featuring Melanie Amaro
- 2012: “Change The Game"
- 2012: “The Best Drink Created Worldwide"
- 2013: “Live for Now" – used for the 2013 Super Bowl Halftime show commercial featuring Beyonce
- 1990–1991: “Yehi hai right choice Baby, Aha" (Hindi – meaning “This is the right choice Baby <sound of approval>") (India)
- 1996–1997: “Pepsi: There’s nothing official about it" (During the Wills World Cup (cricket) held in India/Pakistan/Sri Lanka)
- 1999–2006: “Yeh Dil Maange More!" (Hindi – meaning “This heart asks for more") (India)
- 2002: “Change the World" (Japan)
- 2000–present: “Pepsi ye pyaas heh badi" ((Hindi) meaning “There is a lot of thirst" (India))
- 2009–present: “Yeh hai youngistaan meri jaan" (Hindi – meaning “This is our young country my darling")
- 2009–present: “My Pepsi My Way" (India)
- 2009–present: “Refresca tu Mundo" (Spanish – meaning “Refresh your world") (Spanish Speaking countries in Latin America)
- 2009: “Joy It Forward" (Canada)
- 2010–present: “Pepsi. Sarap Magbago." (Philippines – meaning “Its nice to change")
- 2010–2011: “Badal Do Zamana" (Urdu – meaning “Change The World" by CALL)(Pakistan)
- 2010–2011: “Love!" (Japan, for Pepsi Nex)
- 2010–present: “Pode ser bom, pode ser muito bom, pode ser Pepsi" (It can be good, it can be very good, it can be Pepsi) – Braziland Portugal
- 2011–present: “Change the game" (India, Bangladesh & Pakistan for the 2011 Cricket World Cup)
- 2011–present: “Dunya Hai Dil Walon Ki" (Pakistan-meaning World is For Lovers by Ali Zafar)
- 2011–present: “Ici, c’est Pepsi" (Québec-meaning Here, it’s pepsi)
- 2011–present: “Go Next!" (Japan, for Pepsi Next)
- 2013–present: “Oh Yes Abhi" (Hindi) (India) – meaning Oh Yes Now
- 2013–present: “Embrace your past, but live for now" – Global campaign featuring Beyonce.
- Pepsi Perfect: A vitamin-enriched Pepsi variation shown in the movie Back to the Future Part II in scenes set in the year 2015.
- Pepsi Nex: Pepsi variation shown in the 2011 Japanese anime series, Tiger & Bunny. Pepsi then released a Pepsi Nex variant in Japan in 2012, perhaps for promotional purposes.
In the United States, 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. The caffeine-free Pepsi-Cola contains the same ingredients but without the caffeine.
In August 2010, PepsiCo entered into a 4-year agreement with Senomyx for the development of artificial high-potency sweeteners for PepsiCo beverages. Under the contract, PepsiCo is paying $30 million to Senomyx for the research and future royalties on PepsiCo products sold using Senomyx technology.
According to PepsiCo, PepsiCo’s collaboration with Senomyx will focus on the discovery, development and commercialization of sweet enhancers, with the purpose of providing lower-calorie PepsiCo beverages. PepsiCo will have exclusive rights to the Senomyx sweet flavor ingredients developed through the collaboration.
In September 2012 Pepsi launched a new product called Pepsi Next which contains 30% less sugar and added Stevia as a zero calorie sweetener. The product was rolled out in Australia and is expected to be launched in the US starting February 27.